Small Business Innovation Research (SBIR)
The Small Business Innovation Research (SBIR) program awards grants and contracts to
small businesses for R&D efforts for Federal agencies. SBIR winners have the option of
collaborating with a Federal institution or they can work independently.
Most Federal R&D programs participate in the SBIR program; they publish
solicitation announcements each year that identify R&D areas.
SBIR funds are awarded in three phases:
(1) In Phase I, eligible companies submit proposals to participating Federal agencies;
winners are awarded grants (up to $75,000) to demonstrate the feasibility of the
technology.
(2) Companies demonstrating feasibility may submit a proposal for Phase II funds II (up
to $500,000) to develop the technology and move it towards commercialization. Phase II is
the principal research or research and development effort.
(3) Phase III is designed to support the commercial application of the research and
development; no Federal funds can be used to support this phase.
SBIR agreements generally have provisions that stipulate up to four years of protection
for information generated as a result of SBIR awards. Recipients of these awards retain
title to any inventions resulting from their work.
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