48

49

Appendix IX: Letter From the Department of Education

Concerning the SBIR Program

81

Appendix X: Letter From the Department of Energy

100

Concerning the SBIR Program

Appendix XI: Letter From the Department of Health and

104

Human Services Concerning the SBIR Program

Appendix XII: Letter From the Department of

121

Transportation Concerning the SBIR Program

Appendix XIII: Letter From the Environmental Protection

Agency Concerning the SBIR Program

127

Appendix XIV: Letter From the National Aeronautics and

Space Administration Concerning the SBIR Program

140

Appendix XV: Letter From the National Science

Foundation Concerning the SBIR Program

Appendix XVI: Letter From the Nuclear Regulatory

Commission Concerning the SBIR Program

Appendix XVII: Comments From the Department of

Agriculture

142

166

177

Tables

Table 1.1: Data on SBIR Programs by Fiscal Year, All
Agencies

11

Table 2.1: SBIR Proposal Selection Rate, Fiscal Years
1983-87

21

Table 2.2: Project Officer Responses Concerning SBIR

Support of Technological Innovation

Table 2.3: Firm Responses Concerning Indicators of

Innovation for SBIR Projects That Have Completed

Phase II

21

23

Table 2.4: Responses Concerning Frequency of Monitoring

SBIR Projects

Table 2.5: Responses on Whether the SBIR Programs Help

Meet Agency R&D Needs

Table 2.6: Responses Concerning the Extent That

Individual SBIR Projects Have Contributed to the

R&D Goals of the Agency

Table 2.7: Participation in SBIR by Minority and

Disadvantaged Firms

Table 3.1: Questionnaire Responses Concerning SBIR

Project Quality in Comparison With Non-SBIR

Research

25

26

27

35

39

Table 3.2: Analysis of Project Officer Responses

Concerning SBIR Quality

41

Table 3.3: Share of Project Officer's Non-SBIR Research

Time Devoted to Basic Research

42

Table 3.4: Differences in Assessments of Research Quality

According to Amount of Non-SBIR R&D Time Spent

43

233

on Basic Research

Table V.1: Sampling Plan

66

Figure

Figure 1.1: SBIR Funding by Agency

13

Since fiscal year 1983 federal agencies with large research and develop-
ment (R&D) budgets have operated Small Business Innovation Research
(SBIR) programs to strengthen the role of small, innovative firms in fed-
erally supported R&D. The Small Business Innovation Development Act
of 1982 (P.L. 97-219) requires that all agencies with yearly extramural
(external) research obligations of more than $100 million establish SBIR
programs to solicit research proposals from small business and provide
funds for those proposals that are judged most qualified. In 1986 the
Congress reauthorized the Small Business Innovation Development Act
until 1993. SBIR awards to small businesses have totaled about $1.35 bil-
lion through fiscal year 1988.

SBIR program goals are to

stimulate technological innovation,

use small businesses to meet federal R&D needs,

increase private sector commercialization of innovations derived from federal R&D, and

foster and encourage participation by minority and disadvantaged persons in technological innovation.

Responsibility for SBIR program administration is shared between the Small Business Administration (SBA) and participating R&D agencies. SBIR legislation requires that SBA issue policy directives for the general conduct of the program. However, each participating R&D agency has unilateral responsibility for determining the research areas to be included in its SBIR program, receiving and evaluating research proposals, selecting awardees, and administering payments.

SBA has issued directives that include instructions for preparing agency SBIR program solicitations and for accepting and processing project proposals. It has also provided guidance for agencies in issuing standardized and timely program solicitations and for minimizing the regulatory burden of firms participating in the program.

To be eligible for an SBIR award, SBA's SBIR program policy directive states that small businesses must be

independently owned and operated,

other than the dominant firms in the field in which they are proposing to carry out SBIR projects,

organized and operated for profit,