The NSF SBIR/STTR programs facilitate the transition of scientific and technological innovations from the lab to the market by funding startups and small businesses. This initiative supports economic growth, creates new products and services, and addresses federal research and development needs. Additionally, it promotes the participation of socially and economically disadvantaged and women-owned small businesses.
The Phase II programs provide non-dilutive funding to develop a broad range of technologies based on scientific discoveries, with potential for significant societal and economic impact. Unlike basic research, these programs emphasize moving use-inspired innovations to market or large-scale use. Any invention developed with this funding must comply with the Bayh-Dole Act.
Innovation requirements include being grounded in new scientific or engineering discoveries, requiring intensive R&D to become reliable products or services, not yet being reduced to practice with technical feasibility not guaranteed, offering a competitive advantage that is hard to replicate, and being expected to disrupt existing markets or create new ones.
The program goals are to stimulate technical innovation among diverse entrepreneurs, translate new scientific and engineering concepts into scalable, marketable products and services, and provide non-dilutive R&D funding to startups and small businesses. In Phase I, the focus is on overcoming technical feasibility challenges, while in Phase II, the emphasis shifts towards solving development challenges to create sustainable competitive advantages.
Established in 1982, the NSF SBIR/STTR programs now operate under the Directorate for Technology, Innovation, and Partnerships (TIP). This directorate aims to enhance economic competitiveness by strengthening the connection between research, technology development, and deployment.
For more information, visit the NSF FAQs.
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