SBIR (Small Business Innovation Research)

What is Small Business Innovation Research (SBIR)?

The Small Business Innovation Research (SBIR) program is a highly competitive initiative in the United States that encourages domestic small businesses to engage in federal research and development (R&D) with the potential for commercialization. The program’s primary goal is to stimulate technological innovation and facilitate the integration of small businesses into the federal R&D arena.

Key Phases of the SBIR Program

The SBIR program is structured in three phases:

  • Phase I: This is the startup phase, where the small business must prove the feasibility, technical merit, and commercial potential of their proposed R&D efforts. Awards in this phase typically range from 50,000 to 250,000 for approximately 6 months.
  • Phase II: In this phase, the small business expands on the results of Phase I and continues the R&D work. Awards are generally up to $1 million for 2 years. Only Phase I awardees are eligible for Phase II.
  • Phase III: This phase focuses on the commercialization of the R&D findings. No SBIR funds are awarded in Phase III, but companies may secure funding from the private sector or other government contracts to continue the development of their innovations.

Benefits of the SBIR Program

The SBIR program offers several benefits to small businesses:

  • Funding Opportunities: Provides significant funding to support R&D efforts.
  • Market Validation: Helps validate the commercial potential of new technologies.
  • Partnerships: Facilitates partnerships between small businesses and federal agencies.
  • Commercialization Support: Provides a pathway to bring innovations to market.