1. Overview: Federal Funding for Research and Development Activities Presented by: June Chocheles – jchocheles@fed.org Technology Transition Team Federal R&D Programs Foundation for Enterprise Development May 6, 2009

2. Goals • Federal R&D Programs • Meet the Nation's Scientific and Technological Challenges • Federal R&D Programs for Small Businesses • Stimulation Innovation within Small Business High Tech Community (~$2.3B Annually)

3. Bayh-Dole Act (1980) • US Government Printing Office. Title 37 — Patents, Trademarks, and Copyrights, "Chapter IV — Assistant Secretary for technology policy, Department of Commerce. Part 401 — Rights to inventions made by nonprofit organizations and small business firms under government grants, contracts, and cooperative agreements" • Title 37--Patents, Trademarks, and Copyrights CHAPTER IV--ASSISTANT SECRETARY FOR TECHNOLOGY POLICY, DEPARTMENT OF COMMERCE • PART 401--RIGHTS TO INVENTIONS MADE BY NONPROFIT ORGANIZATIONS AND SMALL BUSINESS FIRMS UNDER GOVERNMENT GRANTS, CONTRACTS, AND COOPERATIVE AGREEMENTS http://www.access.gpo.gov/nara/cfr/waisidx_02/37cfr401_02.html

4. SBIR • Small Business Innovation Research Program (SBIR) • SBIR is a highly competitive program that encourages small business to explore their technological potential and provides the incentive to profit from its commercialization. • By including qualified small businesses in the nation's R&D arena, high-tech innovation is stimulated and the United States gains entrepreneurial spirit as it meets its specific research and development needs. • Federal Agencies make SBIR awards based on small business qualification, degree of innovation, technical merit, and future market potential. Small businesses that receive awards then begin a three-phase program. • SBIR Eligibility Criteria for Companies • Small businesses must meet certain eligibility criteria to participate in the SBIR program. • American-owned and independently operated • For-profit • Principal researcher employed by business • Company size limited to 500 employees • Additional DOD Specific Criteria • Work must be performed in the United States • During Phase I, a minimum of 2/3 of the effort must be performed by the proposing firm; a minimum of 1/2 of the effort in Phase II • The Principal Investigator must spend more than 1/2 of the time employed by the proposing firm

5. SBIR • Participating Agencies • Each year, eleven federal departments and agencies are required by SBIR to reserve a portion of their R&D funds for award to small business. • Department of Agriculture • Department of Commerce • Department of Defense • Department of Education • Department of Energy • Department of Health and Human Services • Department of Homeland Security • Department of Transportation • Environmental Protection Agency • National Aeronautics and Space Administration • National Science Foundation • These agencies designate R&D topics and accept proposals.

6. STTR • Small Business Technology Transfer Program (STTR) • STTR is a highly competitive program that reserves a specific percentage of federal R&D funding for award to small business and nonprofit research institution partners. • Non-profit research laboratories are instrumental in developing high-tech innovations. But frequently, innovation is confined to the theoretical, not the practical. STTR combines the strengths of both entities by introducing entrepreneurial skills to high-tech research efforts. The technologies and products are transferred from the laboratory to the marketplace. The small business profits from the commercialization, which, in turn, stimulates the U.S. economy. • STTR Eligibility Criteria for Companies • American-owned and independently operated • For-profit • Principal researcher need not be employed by small business • Company size limited to 500 employees • (No size limit for nonprofit research institution) • STTR Eligibility Criteria for Nonprofit Research Institutions • Located in the US • Meet one of three definitions • Nonprofit college or university • Domestic nonprofit research organization • Federally funded R&D center (FFRDC)

7. STTR • Additional DoD Specific Criteria • Work must be performed in the United States • The small business must perform a minimum of 40% of the work and the research institution a minimum of 30% of the work in both Phase I and Phase II • The small business must manage and control the STTR funding agreement • The principal investigator may be employed at the small business or research institution • The STTR Participating Agencies: • Each year, five federal departments and agencies are required by STTR to reserve a portion of their R&D funds for award to small business/nonprofit research institution partnerships. • Department of Defense • Department of Energy • Department of Health and Human Services • National Aeronautics and Space Administration • National Science Foundation

8. SBIR/STTR • Three-Phase Program: • Phase I – Exploration Phase • Awards of up to $100,000 for approximately 6 months to support exploration of the technical merit or feasibility of an idea or technology. • Phase II – Prototype Development Phase • Awards of up to $750,000, for as many as 2 years, to expand Phase I results. During this time, the R&D work is performed and the developer evaluates commercialization potential. • Only Phase I award winners are considered for Phase II awards. • Phase III – Commercialization Phase • Funding must come from non SBIR or STTR sources to include the private sector or other non-SBIR federal agency funding. Due to the complexity of the project, Phase III may last several years.

9. Funding Capture Strategy – Key Areas to Address • Know the Criteria to Participate and the Procurement Schedule • Due dates for proposals • Know about the current State-of-the-Art • Current Funded Areas of Research • Agencies/Programs/Program Managers • Research Team Composition • Locations of Research • Results to Date • Identify existing requirements for technology and potential solutions and products • Identify potential application areas, operational environments and end-users • Identify the gaps in current State-of-the-Art • Develop/Refine Your Project concept • Define what’s innovative • How propose to advance the State-of-the-Art • Identify Federal Funding Sources • Target Agencies/Programs/Program Managers

10. Capture Strategy Cont. • Brief Program Managers • Idea/Concept • Innovation • Team • Qualifications • Past Performance/Successes • Commercialization Strategy • Be Open to Feedback from Program Managers! • Finalize Team • Agreements between team members are key! • Prepare and Submit Proposal • Sample proposals • Phase I http://www.acq.osd.mil/osbp/sbir/proposals/smpl_prop1.htm • Phase II http://www.acq.osd.mil/osbp/sbir/proposals/smpl_prop2.htm

11. Sample of Resource Materials • SBA Technology Resources Net http://web.sba.gov/tech-net/docrootpages/index.cfm • SBIR Solicitation Schedule for All Participating Agencies • http://sbir.us/schedule.html • DoD http://www.dodsbir.net/solicitation and http://www.acq.osd.mil/osbp/sbir • Award Abstracts - www.dodsbir.net • Solicitation Topics - http://www.dodsbir.net/topics/Default.asp • DoD Instruction 5000.02 Operation of the Defense Acquisition System http://www.dtic.mil/whs/directives/corres/pdf/500002p.pdf • DHS https://www.sbir.dhs.gov/index.aspx • NASA http://sbir.gsfc.nasa.gov/SBIR/SBIR.html • Award Abstracts - http://sbir.nasa.gov/SBIR/abstractarch.htm • NSF http://www.nsf.gov/eng/iip/sbir • DOE http://www.oe.energy.gov/sbir.htm • Award Abstracts - http://www.science.doe.gov/sbir/newweb/awards.htm • NIH http://grants.nih.gov/grants/Funding/sbir.htm • National Cancer Institute (NCI) • http://sbir.cancer.gov/objects/ppt/SBIR%20pres%20to%20Science%20Writers%20modified%20v6.ppt

12. Sample of Resource Materials • Office of Science and Technology Policy – Federal 2009 R&D Budget • http://www.ostp.gov/cs/rd_budgets • FY 2009 One Pagers • American Competitiveness Initiative (PDF) • National Nanotechnology Initiative (PDF) • Networking and Information Technology (PDF) • Advanced Energy Initiative (PDF) • Research Earmarks (PDF) • Physical Sciences and Engineering (PDF) • Climate Change Science and Technology (PDF) • Earth Observations (PDF) • Homeland Security (PDF) • National Institutes of Health (PDF) • Space Exploration, Science, and Aeronautics (PDF) • Math and Science Education (PDF) • 2009 Budget Priority Memo (PDF) • US Federal Budget 2009 • R&D Chapter 2009 (PDF) • AAAS Federal R&D Funding Update http://www.aaas.org/spp/rd/stim09c.htm • Federal Business Opportunities - Fed Biz Ops – Federal https://www.fbo.gov/index?cck=1&au=&ck=

13. Small Business SBIR/STTR Success Stories • NIH http://grants.nih.gov/grants/funding/sbir_successes/sbir_successes.htm • DoD • DARPA (http://www.darpa.mil/sbir/Success_Story_Main_Page.htm) • U. S. Army (http://www.armysbir.com/commercialization/comm.htm) • U. S. Navy (http://www.navysbir.com/navsuccess.htm) • U. S. Air Force (http://www.sbirsttrmall.com/Library/SBIRImpactStory.aspx)