Small Business Innovation Research (SBIR)

The Small Business Innovation Research (SBIR) program is a highly competitive federal award program that encourages small businesses to explore their technological potential and provides the incentive to profit from its commercialization. Eleven agencies of the federal government are required to set aside a certain portion of their research and development funding for these awards, including the Departments of Agriculture, Defense and Energy, and the Environmental Protection Agency.

Proposals are judged according to small business qualification, degree of innovation, technical merit and future market potential. Funding is awarded in three phases:

• Phase One, start-up phase. Awards of up to $100,000 for approximately 6 months support exploration of the technical merit or feasibility of an idea or technology.

• Phase Two awards up to $750,000 for up to two years, for the purpose of expanding Phase One results. During this time, the R&D work is performed and the developer evaluates commercialization potential. Only Phase I award winners are eligible.

• Phase III is the commercialization of the technology developed during Phase II. No SBIR funds support this phase. The small business must find funding in the private sector or other non-SBIR federal agency funding.

The State of Minnesota’s Director of the Office of Science and Technology, Betsy Lulfs, is a great resource to help your company compete for SBIR funding. The Office helps its clients target the appropriate federal agency, develop strategies, put together a quality research team, find scientific and technical resources and develop and review Phase I and Phase II proposals and budgets.

For more information on the Office’s SBIR services, please visit www.deed.state.mn.us/scitech or contact Betsy Lulfs at 651-259-7441 or betsy.lulfs@state.mn.us. For more information on SBIR, please visit www.sbir.gov.