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  3. SBIRs and STTRs

SBIR/STTR Programs

Eleven federal agencies, including the National Science Foundation (NSF), Department of Health and Human Services (HHS), the Department of Defense (DOD), the Department of Energy (DOE) and the National Aeronautics and Space Administration (NASA) receive congressionally mandated funding to support research and development activities under the Small Business Innovation Research (SBIR) and the Small business Technology Transfer Research (STTR) programs. This page provides information and guidance on submitting and managing SBIR/STTR proposals.

The SBIR/STTR programs aim to encourage technological innovation, and the commercialization of technologies developed through federally funded research and development. Only small businesses can apply for these grants as the primary recipient. Keep in mind that each participating agency has specific requirements for applying, so check their separate websites for additional details.

There are three Phases of the SBIR/STTR Program:

  • Phase I - Feasibility and Proof of Concept (up to $314,363)
  • Phase II - Research/Research Development (up to $2,095,748 + with additional merit)
  • Phase III – Commercialization (no SBIR/STTR funding…outside funding only)

The Small Business Concern (SBC) and FSU must establish an intellectual property (IP) agreement at the time of award, outlining the allocation of IP rights and rights to conduct follow-on research, development, or commercialization activities.

While the SBIR and STTR programs share similar goals, they differ in aspects related to the Principal Investigator (PI) and non-profit research partner. The key differences are as follows:

  • SBIRs require the SBC to perform at least 67% of the R&D, while FSU can perform up to 33% of the R&D (the PI must be employed by the SBC, not FSU)
  • STTRs require the SBC to perform at least 40% of the R&D and FSU must perform at least 30% of the R&D, while the additional 30% can be performed by the SBC, FSU, or another entity (STTRs allow co-PIs)

It is the responsibility of the PI and the department working with SBIR/STTR companies to inform them that businesses submitting grant applications dependent on FSU intellectual property (including patent-pending subject matter, software, materials, or know-how) must disclose this dependency to FSU Commercialization at the time of application. If the grant is funded and the business accepts the award, the business must enter into an option or license agreement for the relevant FSU intellectual property. Research agreements with FSU will not be finalized until the option or license agreement is completed. For any questions regarding this requirement and disclosure procedures, contact FSU Commercialization.

FSU faculty and other members of the campus research community may be interested in participating in SBIR/STTR funded research. These activities can facilitate the transfer of technology to benefit society as well as provide valuable experience and knowledge for the University and small businesses.  Any FSU employee interested in applying for these programs should contact Business & Industry Solutions within the Office of Research to discuss details. FSU’s Sponsored Research Administration also provides useful information for these types of projects.

Florida State University’s Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Procedures

FSU’s SBIR/STTR procedures are to be applied in concert with the University’s other policies and procedures, including but not limited to Financial Conflicts of Interest in Research Policy, Institutional Conflicts of Interest in Research Policy, and other policies related to sponsored research. 

Program Overview  

The federally funded SBIR and STTR programs stimulate innovations that encourage domestic small business concerns (SBC) to engage in research and development that has the potential for commercialization.  SBIR/STTRs are awarded directly to the SBC, which may elect to subcontract with FSU for research expertise and/or specialized equipment and facilities. 

Eleven agencies participate in the SBIR program, and five of those participate in the STTR program.  The standards differ from program to program, but generally the key differences are as follows:

FSU faculty members may participate on one side of a project but cannot participate on both the SBC and the FSU side (even if unpaid). Please contact SRA if you have any questions about this requirement. 

Indirect Cost Rates:

SBIR Phase I = 25% for all federal agencies, except NSF (54%)

SBIR Phase II = 54% for all federal agencies*

STTR Phase I = 25% for all federal agencies, except NSF (54%)

STTR Phase II = 54% for all federal agencies*

*The ICR for the MagLab is 58.5%

Personal COI:  If anyone on the proposal for FSU (faculty, staff, student, contractor, consultant, etc.) has a financial interest in the SBC (e.g., equity, options, compensation, rights to IP that the SBC acquired, etc.), the FSU PI and/or the potentially conflicted individual(s) must consult with Research Integrity, Security, and Ethics to determine if any perceived, potential, or actual COI exists. 

Institutional COI: The FSU PI and/or the potentially conflicted individual(s) also must consult Research Integrity, Security, and Ethics if FSU has its own financial interest in the SBC (equity, options, rights to royalties or other payments through a license). 

Review of SBC’s Application. The Sponsored Research Administration (SRA) may request a copy of the SBC’s proposal prior to the SBC submitting it to the agency.  If a copy is not available at that time, the Pre-Award office may require a copy of the SBC’s full proposal prior to finalizing any contract with the SBC.

Proposal Cover Letter.  The SRA Pre-Award office will prepare a proposal cover letter detailing FSU’s general and SBIR/STTR specific standards, which will be submitted to the SBC with FSU’s proposal.

Unit Review.  Proposals to conduct research at FSU for SBIR/STTR funding should be reviewed by the Department Chair or Institute/Center Director (or designee) to ensure the proposal is in accord with FSU’s policies and procedures for sponsored research:

  • Uses FSU research facilities only for FSU’s portion of the project
  • Has approval for use of FSU research facilities
  • Reflects full cost recovery of direct and indirect costs

Intellectual Property.  A request for proposals for a SBIR/STTR sometimes requires that the SBC and FSU agree to terms on ownership and licensing of intellectual property before the agency issues its award to the SBC.  If so, contact the appropriate Pre-Award office as soon as possible to begin that process, as the negotiation may take time and requires input from FSU Commercialization.

Private Benefit.  The SRA Pre-Award office will review to ensure that the SBC does not use FSU’s resources to benefit the SBC’s interest at the expense of FSU’s non-profit status.  The following are examples of prohibited activities:

  • Using FSU’s personnel (e.g., departmental research administration staff) to prepare or submit the SBC’s proposal, to administer the award
  • Using FSU’s resources (e.g., personnel, equipment, space, etc.) to operate its business or to complete any portion of the SBC’s work

Final Contract.  Once the SBC’s proposal is awarded, the SBC and FSU SRA will finalize and execute a subcontract or other agreement.