How Agencies View Their SBIR Programs

We asked the heads of 11 agencies who fund SBIR projects to provide
their judgments on the effect of SBIR legislation on their agency's
research programs, as required by the reauthorization of the Small Busi-
ness Innovation Development Act of 1982 (P.L. 99-443). In general, the
agencies regarded the overall impact of the SBIR program on their
research activities as favorable. The agencies differed in the specific
impacts of SBIR legislation that they reported, but some themes were
common to most agency responses. Most agencies identified ways in
which their SBIR programs had (1) developed new research areas, (2)
placed more emphasis on the application of research results, and (3)
contributed to wider use of small businesses as research performers.
(See apps. VI through XVI.)

We also asked the same agencies, as well as SBA, to comment on our report in draft form. The agencies either had no comment on our report or expressed agreement with its contents.

Common Themes in
Agency Judgments of
SBIR Programs

New Research Areas

Seven agencies identified ways in which the SBIR program has helped them support new kinds of research. For example, HHS noted that the SBIR projects addressed gaps in its research programs.

"A large number of these gaps appear to be in the area of medical instrumentation, for example, the development of devices for the diagnosis, treatment and rehabilitation of patients with communicative and sensory disorders.... Indeed, SBIR has proved to be a very effective means of encouraging the development of devices, instruments and other hardware that have not otherwise been addressed."

Similarly, NRC stated that the SBIR program offers an opportunity for
federal research program managers to take advantage of new ideas that
might not surface through normal contracting avenues. According to
DOE, research pursuits have been expanded in directions not tradition-
ally followed, and advances have been made in many areas that would
probably not have occurred without SBIR.

USDA, Commerce, DOT, and NSF also reported ways in which SBIR had led to the support of new kinds of research. For example, Commerce said

How Agencies View Their SBIR Programs

that SBIR gave research managers the opportunity to explore new and innovative approaches to their problems and to obtain expertise not available in-house, while NSF said that SBIR projects had led to the development of instruments and testing procedures to support basic scientific research.

Emphasis on Using
Research Results

SBIR programs have produced greater emphasis on the application of
research results, in the opinion of six agencies. According to NSF, the SBIR
program has “served an important technology transfer function
between university and industry research," with more than half of its
SBIR projects involving university faculty. HHS believes that SBIR has been
instrumental in linking industry researchers with academic investiga-
tors by providing an incentive to collaborate, leading to more rapid tech-
nology transfer. USDA and DOED also identified SBIR projects as a
mechanism for commercializing the results of basic research. DOD noted
that the SBIR program helps transfer technology by creating networks
among SBIR contractors, government, and academia. NASA stated that SBIR
projects had an excellent record in producing useful results for the
agency.

Small Businesses as
Research Performers

Agency Comments on
Our Draft Report

Six agencies highlighted that SBIR provided opportunities to small businesses that had not been provided by other agency research programs. According to DOE, “in almost all Departmental areas the breadth of participation by small business has significantly increased the pool of scientists and engineers now contributing to DOE research.” In addition, USDA said that the small business research community that applies to the SBIR program is completely different from that which applies to the agency's main extramural research program. Of the 1,653 proposals received for USDA's main research program in fiscal year 1987, only 8 were from private, profit-seeking organizations while all SBIR proposals are from this type of organization. Similar observations were made by DOT and HHS. DOD and NASA noted that their SBIR programs had helped small businesses become useful performers of agency research.

We asked the 11 agencies that now operate SBIR programs, as well as SBA, to comment on our draft report. Ten agencies provided written responses, which are included in appendixes XVII through XXVI. Although NASA and NSF did not respond in writing, we discussed the draft report with agency SBIR program managers at these agencies.

How Agencies View Their SBIR Programs

Agencies either had no comment on our draft report or expressed agreement with its contents. Some agencies suggested technical changes in the report, which we incorporated as appropriate.

Source: Small Business Innovation Development Act: Fifth Year Results, SBA (June 1988).