There’s some good news for small businesses in the U.S. looking to engage in Federal research and development. The DoD Section 809 Panel, has just recommended more than doubling the SBIR/STTR funding allocation. The panel, which is tasked with streamlining the defense acquisition process, wants to increase the allocation from 3.2% to 7% of extramural R&D funds. This increase in funds will be phased in over a five year period. Equally as exciting and important, the panel wants to Amend 15 U.S.C. 638, making SBIR and STTR programs permanent.
This increase in funds follows the release of a report on the effectiveness of the SBIR program, pointing out the high success rate of the Rapid Innovation Fund (RIF) in transitioning technology. A study conducted by the Government Accountability Office (GAO), involving 1,435 companies over a 10-year span, shows that the companies receiving funding from the SBIR program were more likely to receive venture capital investments and grow in size than companies that chose not to participate in SBIR.
Another finding from the study shows that SBIR technologies are typically slower to reach commercialization, often taking eight to 10 years. Therefore, the recommended increase in funding should help speed up the process and help bridge the valley of death for successful commercialization of SBIR products.
To learn more about how your small business can find and receive government R&D funding, contact the experts at Green Tape today.