The Small Business Innovation Research (SBIR) program is a highly competitive program that encourages domestic small businesses to engage in Federal Research/Research and Development (R/R&D) that has the potential for commercialization. Through a competitive awards-based program, SBIR enables small businesses to explore their technological potential and provides the incentive to profit from its commercialization. By including qualified small businesses in the nation’s R&D arena, high-tech innovation is stimulated and the United States gains entrepreneurial spirit as it meets its specific research and development needs.
Each year, Federal agencies with extramural research and development (R&D) budgets that exceed $100 million are required to allocate 3.2 percent (FY 2017) of their R&D budget to these programs. Currently, eleven Federal agencies participate in the SBIR program: