Small Business Innovation Research SBIR Small Business Technology Transfer STTR

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Small Business Innovation Research (SBIR)Small
Business Technology Transfer (STTR)

• Dennis Gaddis
• Ohio Dept of Development
• Technology Division
• 614-466-3887 800-848-1300
• dgaddis_at_odod.state.oh.us

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SBIR Program

• Small Business Innovation Research
• Federal Program established in 1982
• Stimulate technological innovation
• Use small businesses to meet federal RD needs
• Increase private sector commercialization of
  innovations derived from federal RD
• Encourage participation in technological
  innovation by disadvantaged, minority and
  woman-owned businesses

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SBIR Program

• 2.5 of agencys extramural RD budget if over
  100M
• FY 2003 funding over 1.6 Billion
• Eleven federal agencies participate
• Reauthorized through 2008

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SBIR Participating Agencies2B in funding per
year

• Department of Agriculture - 17.74M
• Department of Commerce - 7M
• Department of Defense - 1B
• Department of Education - 8.7M
• Department of Energy - 95M
• Department of Health Human Services - 574.2M
• Department of Homeland Security - 19.6M
• Department of Transportation - 3.2M
• Environmental Protection Agency - 8M
• National Aeronautics Space Administration -
  107.5M
• National Science Foundation - 94M
• 2005 Dept of HUD perhaps Interior Justice

New!!
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How to Get the
Find

• the Person with the PROBLEM
• with the MONEY to solve the problem
• and the MEANS with which to give YOU the money to
  solve the problem.

Contract Or Grant
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How SBIR/STTR Work

• Agencies have mission needs and RD
• Agencies issue solicitations
• Small businesses submit 25 page proposals by
  solicitation closing dates
• Agencies review proposals, select winning
  proposals and negotiate agreements within 6
  months of the closing date
• Small business awardees commence RD efforts

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SBIR - Three Phase Process

• Phase I - Feasibility
• Generally 6 month effort
• Up to 100K in SBIR funding
• No more than 33 subcontracted
• Phase II - Full RD/Prototype
• Generally 2 year effort
• Up to 750K in SBIR funding
• No more than 50 subcontracted
• Phase III - Commercialization
• No SBIR funding

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SBIR Eligibility Requirements

• At time of award, a business
• Must be organized for profit
• Must have less than 500 employees including
  affiliates subsidiaries
• Must be located in the U.S.
• Must be at least 51 owned by U.S. citizens or
  permanent residents
• Must be primary employer of Principal
  Investigator (gt50)

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What SBIR is not

• Not a state funded program
• Not a loan program
• Not a quick program (4 years)
• Not necessarily a business start-up program,
  although many businesses are begun with an SBIR
  award

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Benefits of SBIR/STTR to Companies

• Seed money to fund high-risk projects
• Not a loan - no repayment required
• Company retains intellectual property
• Recognition, validation and visibility
• Leveraging tool to attract venture
  capital/other
• SBCs increasingly recognized as source of
  technology innovation

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SBIR Timing

• If you have an idea but not a business plan, you
  may be too early.
• If you already have a product developed, you may
  be too late.
• If your technology matches a federal need, if you
  have the resources necessary to perform high risk
  research, and if an SBIR project meets your
  business plan, your timing might be right.

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STTR Program

• Small Business Technology Transfer Program
• Cooperative effort between small business and
  nonprofit research institution
• 40 work performed by small business-30 work
  performed by non profit institution
• Employment requirements for Principal
  Investigator depend on agency - DoD, HHS,
  NASA-either. DoE, NSF- must work for SBC
• Reauthorized through 2009

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STTR Program

• Phase I - Feasibility
• 1 year effort
• Up to 100K in STTR funding
• No more than 30 subcontracted
• Phase II - Full RD/Prototype
• 2 year effort
• Up to 750K in STTR funding
• Phase III - Commercialization
• No STTR funding

New!!
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STTR Program

• Five participating agencies
• Dept of Defense (separate solicitations)
• Dept of Energy (combined solicitation)
• Dept of Health and Human Services (combined
  solicitation)
• NASA (combined solicitation)
• National Science Foundation (combined
  solicitation)

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Evaluation Criteria

• Scientific and Technical Merit
• Qualifications of PI/other key personnel
• Soundness of Work Plan
• Commercial Potential

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Types of Awards

• Grants Agency identifies broad research areas.
  Investigators/Researchers propose specific
  topics.
• USDA, Education, Energy, Health Human Services,
  National Science Foundation
• Contracts Agency specifies research topics.
• Commerce, Defense, Education, Health Human
  Services, Transportation, EPA and NASA

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Proprietary Information

• Proposal Abstract
• Abstracts are released by government
• No proprietary information is allowed in the
  abstract
• Proposal
• Proprietary information must be clearly marked in
  the proposal according to the solicitation
  instructions.
• Proprietary information is treated in confidence
  to the extent permitted by law

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Intellectual Property Protection

• Agencies will not disclose Proprietary
  Information, Technical Data, or information on
  inventions for 4 years after completion of SBIR
  project
• Department of Defense will not disclose
  information for 5 years
• Department of Transportation protects invention
  information for 2 years
• NASA protects invention/patent information for a
  reasonable time
• Helpful information!! Iandiorio and Teska,
  www.iandioro.com I T Publications New Ideas,
  Methods and Products Series Volume XIII

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Federal And State Technology Partnership (FAST)

• Ohio SBIR and SBDCs form Team SBIR
• Focus on Commercialization assistance
• Coordinate Ohio resources
• Establish Mentoring Network
• Build Knowledge Base

This U.S. Small Business Administration (SBA)
Cooperative Agreement is partially funded by the
SBA. SBAs funding is not an endorsement of any
products, opinions or services. All SBA funded
programs are extended to the public on a
nondiscriminatory basis.
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Suggestions for Companies

• Get to know agency customers
• Understand agency missions and needs
• Read solicitation and follow instructions
• Do not depend solely on SBIR funding
• Dont go it alone (Use Ohios FAST Team!)
• Have an outcome
• Be persistent

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Federal Focus

• Commercialization
• Outside investment
• Cost Reductions

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Where Ohio Stands in SBIR Awards

• In 2002, Ohio ranked 6th in SBIR awards - 220
  SBIR awards totaling 63.5M
• 152 Phase I, 68 Phase II awards
• Rankings CA, MA, VA, MD, CO, OH, NY, PA, TX,
  NJ, WA, AZ, AL, FL, MN, MI, CT, NC, NM, NH, OR,
  IL, UT, WI, GA, TN, IN, DC, NV, MO, NT, SC, RI,
  IA, KS, OK, KY, ID, HI, LA, MS, WY, DE, ME, VT,
  SD, AR, NE, ND, WV, PR, AK

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Services offered by Ohios SBIR Outreach Program

• One to one consultations targeted to the
  companys needs
• Regional workshops and conferences
• www.odod.state.oh.us/tech/sbir
• Proposal writing strategies and guidelines
• Administrative proposal review
• Post award support
• Referrals to SBDC network, economic development
• Research Commercialization Grant
  Program

New!!
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How to contact Ohios SBIR Program

• On the World Wide Web http//www.odod.state.oh.us
  /tech/sbir
• Phone [phone] ext.63887
• 614-466-3887
• Fax [phone]
• Email ohsbir_at_odod.state.oh.us

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Incentives for Tech Companieswww.connectohio.com/
bus_resources/

• Technology Investment Tax Credit (TITC)
• Company has lt 2.5M in Gross Revenue or Net Book
  Value
• Ohio equity investors receive 25 tax credit
• Ohio Job Creation Tax Credit (JCTC)
• Create 25 jobs _at_ 150 of minimum or 10 jobs _at_
  400
• Net Worth Tax Exemption for High-Tech Start-up
  Companies
• Exempts lt3 year old Tech company from Corporate
  Franchise Tax www.state.oh.us/tax/Business.html
• Research and Development Sales Tax Exemption
• Unit Exemption Certificate www.state.oh.us/tax/bus
  iness_forms_sales.html
• Ohio Investment in Training Program
• Provides financial assistance and technical
  resources for customized training involving
  employees of new and expanding Ohio businesses.

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Helpful Information

• Small Business Innovation Research (SBIR) and
  Small Business Technology Transfer (STTR)
• www.odod.state.oh.us/tech/sbir
• SBIR Gateway www.zyn.com/sbir
• SBIR World www.sbirworld.com
• Grants.gov www.grants.gov
• Electronic Storefront for Federal Grants
• State Science and Technology Institute
• SSTI Weekly Digest Subscribe www.ssti.org
• SBIR Alert Pacific Northwest National
  Laboratory
• http//lyris.pnl.gov/cgi-bin/?entersbir-alert

Topic Search
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Department of Defense

• Defense Technical Information Center (DTIC)
• http//www.dtic.mil/dtic/dticorg/regional/mw_regi
  onal.html
• The Rosetta Stone for dealing with the Defense
  Department
• Debie Francis
• Midwestern Regional Office at DaytonATTN
  DTIC-BPDBuilding 29, Area B, Room 1032245
  Monahan WayWright-Patterson AFB, OH 45433-7022
• Phone [phone] x 249FAX [phone]
  Email dfrancis_at_dtic.milOffice hours
  Monday-Friday 730 a.m. to 430 p.m. Eastern

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Sources of Assistance

• Small Business Development Center Program
  www.ohiosbdc.org
• Small Business Development Centers (SBDC)
• Manufacturing, Defense and Technology Small
  Business Development Centers (MSBDC)
• International Trade Assistance Centers (ITAC)
• Ohio Procurement Technical Assistance Centers
  (PTAC)