STTR (Small Business Technology Transfer)

What is STTR (Small Business Technology Transfer)?

The Small Business Technology Transfer (STTR) program is a U.S. government program designed to facilitate the transfer of technology developed at research institutions to small businesses for commercialization. It mandates a formal collaboration between a small business and a research institution. The program aims to stimulate technological innovation and create new opportunities for small businesses to participate in federal research and development.

Definition

The STTR program, established under the Small Business Act, requires federal agencies with extramural research and development (R&D) budgets exceeding $1 billion to allocate a portion of those funds to STTR projects. Unlike the Small Business Innovation Research (SBIR) program, STTR necessitates a formal partnership between a small business and a research institution, such as a university or a Federally Funded Research and Development Center (FFRDC). This partnership ensures the transfer of knowledge and technology from research institutions to small businesses, which then commercialize the resulting innovations. The government benefits from access to cutting-edge research and technological advancements, while small businesses gain a competitive edge through innovation.

Key Points

• Collaboration is Key: The defining characteristic of STTR is the mandatory collaboration between a small business and a research institution.
• Phased Funding: STTR, like SBIR, typically follows a phased approach. Phase I focuses on feasibility studies, while Phase II supports prototype development and demonstration.
• Commercialization Potential: STTR prioritizes projects with strong commercialization potential, aiming to bring innovative technologies to the market.
• Intellectual Property: STTR projects can result in significant intellectual property. Understanding and protecting these rights is crucial for successful commercialization.

Practical Examples

1. Developing a New Medical Device: A small medical device company partners with a university research lab to develop a novel diagnostic tool under an STTR grant. The university provides expertise in advanced imaging techniques, while the small business focuses on product development and regulatory compliance.
2. Cybersecurity Solution: A cybersecurity startup collaborates with a government research center to create a secure communication platform for federal agencies, leveraging the center's expertise in cryptography and network security. The STTR funding helps the startup refine its technology and adapt it to meet government security requirements.
3. Advanced Materials Research: A materials science company works with a university materials science department under an STTR grant to develop a high-performance polymer for aerospace applications. The university's expertise in polymer chemistry and testing, combined with the company's manufacturing capabilities, leads to a commercially viable material.