Small Business Innovation ResearchSmall Business Technology Transfer Opportunities at the National S

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Small Business Innovation Research/Small Business
Technology Transfer Opportunities at the
National Science Foundation

• Dr. Sara B. NerloveSBIR/STTR Program Manager
• Fifth Annual STTR/SBIR-HBCU/MI
• Technical Conference
• AAMURI
• Normal, AL
• January 24-26, 2005

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Origins of Federal SBIR/STTR Programs

• Federal Research Development Needs can be met
  by
• Small Business
• Academia, Federal Labs
• Large Business
• Small Business is a key contributor to the
  Economy of the Nation
• Job Creation
• Wealth Creation

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Employment of Scientists and Engineers
Education
Sector
18.50
36
E
Government
Sector
S
13
G
Large
Business/Industry
Sector
L
Small
Business/Industry
Sector
32.50
Data from NSF Science Indicators
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NSFs Vision

• Enabling the Nations future through discovery,
  learning, and innovation

Joe Bordogna, Deputy Director of the National
Science Foundation
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NSF Unique Features

• Phase I Grantees Workshop
• Commercialization Planning Assistance
• Phase II Grantees Conference
• Networking Opportunities
• Among small businesses
• With investors
• Phase IIA
• Scientific/Engineering Research Supplement
• Small pilot program co-funded by the Centers of
  Research Excellence in Science and Technology
  (CREST) Program (NSF Education Human Resources
  Directorate)
• minority institution subcontract (must be CREST
  grantee)

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NSF Unique Features(cont)

• Phase IIB
• Commercialization Incentive Supplement with 3rd
  Party Match
• SBIR MatchMaker
• Connecting NSF Phase II Grantees with Investors

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SBIR Innovation Model
Private Sector Investment/ Non-SBIR Federal
Funds (before/during/after!)
PHASE I Feasibility Research 100k
PHASE III Product Development to Commercial Market
PHASE II Research towards Prototype 500k
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SBIR / STTR Participating Agencies

• DOD SBIR/STTR
• HHS SBIR/STTR
• NASA SBIR/STTR
• DOE SBIR/STTR
• NSF SBIR/STTR 103M
• DHS SBIR
• USDA SBIR
• DOC SBIR
• ED SBIR
• EPA SBIR
• DOT SBIR

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Doing Business with NSF

• NSF is not the Final Customer
• NSF is not buying your product/process/software
  or your intellectual property
• NSF has broad market driven technology topics
  you pose the problem, propose the solution, and
  identify the opportunity
• NSF wants to see you successfully commercialize
  your high-tech research
• You need investment dollars beyond NSF SBIR/STTR

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SBIR/STTR Phased Project Structure

• Phase I Feasibility Research 10-15 success
  rate at NSF
• SBIR 6 months up to 100,000
• STTR 12 months up to 100,000
• Phase II Concept Development 30-40 success
  rate at NSF
• SBIR/STTR 24 months up to 500,000
• Phase IIB unique to NSF Matches Third Party
  Investment
• NSF - 50,000 to 500,000 (Phase II Phase IIB
  1M max)
• Investor - 100,000 to 1,000,000
• Phase III Commercial Application Non SBIR,
  primarily Private Funding

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Partnerships Opportunities in SBIR/STTR

• SBIR Partnership Optional
• Small Business Prime (I.e., Grantee)
• Phase I up to 1/3 of budget can be out-sourced
• Phase II up to ½ of budget can be out-sourced
• STTR Partnership Required
• 40 to 70 of the research by the Small Business
• 30 to 60 of the research by Academia/FFRDC
  (I.e., Subawardee)

Federally Funded Research and Development Centers
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Faculty Partnership in Small Business

• Faculty members can own small firms
• Faculty members can be Senior Personnel on the
  grant budget
• Faculty members can consult
• Faculty members can be Principal Investigators
  (with official leave from university)
• Faculty members can be part of a university
  subcontract
• University laboratories can provide analytical
  testing and other support services

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Roles for Students Teachers in Small Business
Grants
Unique to NSF

• Supplemental Grants to SBIR/STTR companies
• REU Research Experience for Undergraduates
• Typically 6,000 support per student
• Up to 2 students per year/per grant
• RET Research Experience for Teachers (K 12
  Community College Faculty)
• Typically 10,000 support per teacher
• Up to 2 teachers per year/per grant

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SBIR/STTR Solicitation Topics

• Investment Focused (VCs, Angels)
• Biotechnology (BT)
• Electronics (EL)
• Information Based Technologies (IT)
• Industrial Market Driven (Strategic Partners)
• Advanced Materials and Manufacturing (AM)
• Chemical Based Technologies (CT)
• Special Topics in Response to National Needs
• Security Technologies (ST)
• Manufacturing Innovation (MI)

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Solicitation Topics

• 12-18 month planning cycle
• Expect for that each Solicitation will offer 1 or
  more topics that represent
• Investment business focused technologies
• Market driven technologies
• Special Topics in Response to National Needs
• Keep a watch on the topic offerings of the
  current solicitation for opportunities most
  relevant to you
• Next Solicitation release by March 1, 2005 for
  June 8, 2005 deadline
• Topics Electronics
• Security Technologies

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Phase I Submissions

• FY06 Solicitation 1 opens on or before March 1,
  2005
• 2 Topics
• Electronics and Security Technologies
• Deadline June 8, 2005
• FY06 Solicitation 2 opens on or before September
  1, 2005
• Topics to be announced
• Deadline sometime early December 2005
• Electronic (via the NSF FastLane Submission
  System)
• Can submit up to 1 month prior to the deadline
• Register company immediately
• Submit at least 3 to 5 days before the deadline

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NSF Merit Review Process

• NSF Peer Review
• Typically reviewed at onsite panel meetings
• Panelists come from Academia/Industry/Government
  Labs
• Phase I all proposals receive a minimum of 3
  expert technical reviews
• Phase II all proposals receive in-depth
  extensive reviews
• A minimum of 3 expert technical reviews
• A minimum of 3 expert commercial reviews

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NSF Merit Review Criteria

• Intellectual Merit
• Quality of the Research
• Novelty of the idea (not incremental
  research)(may lie in application)
• Major advance to current technology
• Soundness of Science/Engineering
• Awareness/understanding of prior art and
  value-added
• Broader Impact
• Commercialization Potential
• Benefit to society
• Market Focused
• Who is the Customer?

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SBIR/STTR Commercialization History Very
Important Part of the Review!

• Revenue from SBIR/STTR Funding
• Previous SBIR/STTR Phase II Awards
• Follow-on-Funding from Government and Private
  Sector
• Total Sales Revenues from Commercialization of
  Phase II Projects

Whats the Governments Return on Investment?
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EPSCoR/SBIR Advantage

• EPSCOR stands for Experimental Program to
  Stimulate Competitive Research
• NSF strong partnership between EPSCoR and SBIR
  Programs
• EPSCoR may fund Phase I proposals that do not
  make the first cut of 1 in 8-10 but are
  recommended for funding
• But you must submit a competitive proposal!

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SBIR/STTR Commercialization History Very
Important Part of the Review!

• Revenue from SBIR/STTR Funding
• Previous SBIR/STTR Phase II Awards
• Follow-on-Funding from Government and Private
  Sector
• Total Sales Revenues from Commercialization of
  Phase II Projects

Whats the Governments Return on Investment?
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NSF FY-03 Phase I (2,272 submissions and 476
awards)

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Questions to Consider

• Is there a need for the technology?
• Has the necessary team for a successful program
  been assembled?
• Who will benefit from this technology?
• Who are the customers and who will invest?
• Has ownership of intellectual property been
  addressed?

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For more information.

• Contact individual agency websites

• Cross-agency website
• http//www.sbirworld.com

• Conferences / workshops
• National Spring SBIR/STTR Conference, March
  7-10, 2005, Omaha, NE
• National Fall SBIR/STTR Conference,
• November 14-17, 2005, Albany, NY
• Topic search engine for all agencies
• Partnering Opportunities
• State Newsletters

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NSF SBIR/STTR Home Page
http//www.eng.nsf.gov/sbir
Custom News Service http//www.nsf.gov/home/cns/ A
ward Search via http//www.fastlane.nsf.gov E.g.,
by program Small Bus Tech Trans Program Small
Business Phase I Small Business Phase II
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NSF SBIR/STTR
REUhttp//nsf.gov/home/crssprgm/reu/start.htm
currently NSF 04-584 RET
http//www.nsf.gov/pubs/2003/03554/nsf03554.txt
currently NSF 03-554 OSDBU SADBU
http// www.nsf.gov/contracting opportunities