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Executive Summary
Pages 1-4

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From page 1...
... They participated in the SBIR program throughout this period without any apparent adverse consequence for the operation and achievements of the program. THE 2002 SBA DIRECTIVE In a 2002 directive, the Small Business Administration ruled that to be eli gible for SBIR the small business concern should be "at least 51 percent owned and controlled by one or more individuals who are citizens of, or permanent resident aliens in, the United States, except in the case of a joint venture, where each entity to the venture must be 51 percent owned and controlled by one or more individuals who are citizens of, or permanent resident aliens in, the United 1As stated in the Small Business Innovation Development Act (PL 97-219)
From page 2...
... have argued that the new eligibility requirements have a negative impact on the NIH mission and on the ability of high-technology firms to develop and commercialize promising new biomedical technologies. CALL FOR AN EMPIRICAL ASSESSMENT BY THE NATIONAL RESEARCH COUNCIL To better understand the impact of the SBA exclusion of firms receiving venture funding (resulting in majority ownership)
From page 3...
... Firms that are venture-funded are somewhat less likely to commercialize but are much more likely to generate substantial sales from their SBIR-funded projects when they do commercialize than are firms that receive SBIR funds but are not venture-funded. Restricting access to SBIR funding for firms that benefit from venture invest ments would thus appear to disproportionately affect some of the most commercially promising small innovative firms.
From page 4...
... It would be worth examining the impact of restricting venture funding on the SBIR program at other federal agencies. 7The Committee has published separate assessments of the SBIR programs at the Department of Defense, at the National Institutes of Health, the Department of Energy, the National Aeronautics and Space Administration and the National Science Foundation.


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