Deciding between SBIR and STTR
| Description of program features or requirements | SBIR | STTR |
|---|---|---|
| Partnering requirement | Allows partnering | Requires a non-profit research institution partner |
| Principal investigator | Primary employment (>50%) must be with the small business | PI may be employed by either the research institution partner or small business (check solicitation) |
| Work requirement | May subcontract up to: 33% (Phase I) 50% (Phase II) |
Minimum: 40% Small Business 30% Research Institution Partner |
| Program overall budget | FY19 - $3.28 billion | FY19 - $453 million |
| Participating agencies | 11 agencies (extramural R&D budget > $100M) | 5 agencies (extramural R&D budget > $1B) |
| IP Allocation Agreement required | No | Yes |
Partnering and budget allocations
An SBIR award gives flexibility in partnering with subcontractors and allows up to 33% of the funding to be used for partners.
An STTR award requires that 40% of the funding goes to a research institution, 30% goes to the small business applicant and 30% is discretionary.
IP Allocation Agreement
Before receiving an STTR award, a small business must negotiate a written agreement between the small business and the partnering research institution, allocating intellectual property rights and, if relevant, rights to carry out follow-on research, development or commercialization.
When partnering with the Βι¶ΉΣ³», please contact Enterprise & Innovation to receive guidance on the IP allocation agreement.
Working with the Βι¶ΉΣ³»
You may decide to partner with the University with either SBIR or STTR awards, but the STTR requires the partnership. There are many benefits to partnering with a university, such as:
- Access to pre-existing, top-tier research and intellectual property
- Leveraging existing research infrastructure such as equipment, chemical and biological waste management, safety policies and procedures, and expertise
- Cultivating a long-term relationship around joint research and development
- Access to a large employment talent pool
- Utilizing support and compliance structures for grant and intellectual property management
Contact points at the Βι¶ΉΣ³»
- Sponsored Projects for award management and compliance
- Enterprise & Innovation for intellectual property, technology licensing, and faculty matching.
| Agency | Participation in SBIR or STTR? | Contracting agency or granting agency? |
|---|---|---|
| Department of Agriculture (USDA) | SBIR | Granting agency |
Department of Commerce (DOC)
|
SBIR | Granting agency |
| Department of Education (ED) | SBIR | Contracting agency |
| Department of Homeland Security (DHS) | SBIR | Contracting agency |
| Department of Transportation (DOT) | SBIR | Contracting agency |
| Environmental Protection Agency (EPA) | SBIR | Contracting agency |
| Department of Defense (DOD) | STTR | Contracting agency |
| Department of Energy (DOE) | STTR | Granting agency |
Department of Health and Human Services (HHS)
|
STTR | Granting and contracting agency (mostly grants) |
| National Aeronautics and Space Administration (NASA) | STTR | Contracting agency |
| National Science Foundation (NSF) | STTR | Granting agency |
Differences between contracting agencies and granting agencies
Contracts are typically an opportunity where an agency puts forth a problem that needs to be solved, like “we need better batteries,” whereas grants are typically more open-ended, such as “we need a better energy solution – tell us your approach.”
Contracting agencies
- Agency establishes plans, protocols, requirements
- Highly focused topics
- Procurement mechanism
- More fiscal requirements
- Invoiced on progress
- Binding agreement between a buyer and seller for goods/services
Granting agencies
- Principal Investigator initiated approach
- Less-specific topics
- Assistance mechanism
- More flexibility
- Allows upfront payment
- Funds support a public purpose, best efforts in research