An Assessment of the SBIR Program at the National Science Foundation (2008) / Chapter Skim
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Pages 337-346
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From page 337... ...
He also emphasized the importance that should be placed on matching funds as a way to indicate commercial potential. "Bringing in cash matching funds is a more powerful signal of commercialization than any review panel's opinion." UNEDITED PROOFS
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Taylor the NSF SBIR program is unique in its strong support of manufacturing innovations. In his words: "NSF seems more supportive of manufacturing-type innovations.
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Taylor noted that he has served on panels, and "it is an extensive process." He explained that the technical and business reviewers sat together on the panels in which he participated, and commented that this combining of the reviewers, which may be unique to NSF, is a valuable approach. SUMMARY This case study shows how SBIR grants enabled a start-up company in Ohio, Faraday Technology, Inc., to develop an underlying electrochemical technology platform and, through continuing innovation, to leverage it into multiple lines of business.
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Economists studying the rationale for government support of scientific and technical research have identified the licensing of technology as one of the factors conducive to generating higher than average spillover benefits. Finally, this case compares and contrasts aspects of different agency SBIR programs.
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4% Revenue share from sales, licensing, & retained earnings: 96% Number of Employees: 141 Patent Portfolio: Over 550 issued or pending patents, US and foreign SIC: Primary SIC: 3577, Computer Peripheral Equipment 35779907, Manufacture Input/output Equipment, Computer Secondary SIC: 7374, Data Processing and Preparation 73740000, Data Processing and Preparation, Computer Technology Focus: Touch-feedback technologies Application Areas: Computer peripherals, medical training systems, video and arcade games, touch-screens, automotive controls, 3-D modeling, and other Funding Sources: Licensing fees, product sales, contracts, stock issue, commercial loans, federal government grants, and reinvestment of retained earnings Number of SBIR grants: From NSF: 10 (4 Phase I, 3 Phase II, and 3 Phase IIB) From other agencies: 33 (20 Phase I and 13 Phase II)
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From page 342... ...
Then, in 2000, Immersion grew mainly by acquiring two companies: Haptic Technologies, located in Montreal, Canada, and Virtual Technologies, Inc.225, located in Palo Alto, California, both acquisitions now an integral part of Immersion Corporation. And, in 2001, Immersion acquired HT Medical Systems, located in Gaithersburg, Maryland, renamed it Immersion Medical, and made it a subsidiary of Immersion Corporation.
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From page 343... ...
excludes Phase IIB/Enhancement grants which are listed separately According to Mr. Ullrich, SBIR grants gave the company the ability to further develop its intellectual property and to help to grow its intellectual property portfolio, which is the very core of the company's commercial success.
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These are summarized as follows: Difference in Agency Program Intent Helpful to Companies Mr. Ullrich thought it was clear that there is "a difference in intent" among the various SBIR programs.
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He suggested that providing a supplement -- as he recalled some parts of DOD do -- to close the funding gap would likely be a preferable approach from the company's perspective. Phase IIB Matching Funds Requirement For Immersion, NSF's Phase IIB matching requirement of "cash in the bank" was an easy test to meet -- once the company had partners.
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From page 346... ...
Currently, the company is participating in the Foresight Commercialization Assistance Program for the first time and is "seeing if it will help." SUMMARY This case study describes how SBIR grants helped a young company develop a large intellectual property portfolio centered on adding the sense of touch to diverse computer applications, and how the company grew the business over its first decade to approximately 141 employees and $24 million in annual revenue. It illustrates how government funding can be used by a university spin-off to leverage funding from private sources to achieve faster growth, eventually essentially eliminating the need for government R&D support.
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