Nevada Small Business Innovation Research (SBIR/STTR)

The federal SBIR program was created in 1982 to stimulate technological innovation, use small businesses to meet federal R&D needs, and increase private sector commercialization derived from federal R&D. The federal STTR Program, established in 1992, is modeled on the SBIR program and has similar objectives. It also serves to encourage technology transfer through cooperative research between small business concerns and non-profit research institutions. After each participating federal agency receives SBIR and STTR proposals that address its solicitation topics, the agency then awards SBIR contracts and/or grants to businesses based on these proposals. When a business receives an award, they begin a three-phase process: Phase I • The purpose of Phase I is to evaluate scientific and technical merit and determine the feasibility of a technology idea. • The duration of Phase I is 6 months for SBIR and 12 months for STTR. • The award amount in Phase I can be up to $250,000. Phase II • Phase II is usually assumed to be the prototype development phase, expanding on the results of Phase I. • Phase II awards are awarded to the Phase I projects that are most promising. • A business must enter Phase II through Phase I. They cannot skip Phase I. • The duration of Phase II is approximately 24 months. • The award amount for SBIR is up to $750,000, and for STTR, it is $15 million. Phase III • The purpose of Phase III is to commercialize the technology created during Phase I and Phase II. • Generally, there are no SBIR/STTR funds for research and development under Phase III. Phase III requires the use of private (venture capital investments, loans, angel investments, other company investments, etc.) or non-SBIR/non-STTR government funds. • Several agencies have implemented programs to strengthen the ability of companies that received grants to commercialize their innovations.