SBIR at the National Science Foundation (2015) / Chapter Skim
Currently Skimming:
5 The Phase IIB Program
5 The Phase IIB Program
Pages 124-151
The Chapter Skim interface presents what we've algorithmically identified as the most significant single chunk of text within every page in the chapter.
Select key terms on the right to highlight them within pages of the chapter.
From page 124... ...
Unless otherwise indicated, information about the NSF Phase IIB program is drawn from the referenced web page, which is the official NSF description of the program.
|
From page 125... ...
After 5 years, about 69 percent of companies that received Phase IIB funding were beginning to see success, whereas only 31 percent of those not having a IIB supplement were successful. Many of the Phase IIB companies have grown in both revenue and employ 4 All discussion of the NSF Phase IIB program in this chapter should be viewed in the context of the program prior to reauthorization.
|
From page 126... ...
All companies must do the following: • Receive permission to submit an investment package for review • Submit a completed Phase IIB investment package, which includes docu mentation that specify the source and conditions governing the Phase IIB matching funds • Pass NSF Phase IIB Committee review • Receive application approval from the NSF Phase IIB Committee • Submit a Phase IIB proposal • Receive Phase IIB approval from NSF • Companies seeking $250,000-500,000 must in addition provide an oral presentation to the NSF Phase IIB committee. Presenters must include the Principal Investigator (PI)
|
From page 127... ...
In fact, the tone of the first definition -- which is reiterated separately for applications of less than and more than $250,000 -- appears to require that matching funds meet a more standard meaning of "investment." The survey evidence discussed below reveals confusion among Phase IIB awardees on this point. The second description also mandates that the funding be a "direct consequence of the Phase II award." This has the effect of ruling out any funding generated as a consequence of the Phase I award or other company activities that may be coterminous with the Phase II award -- a point made in interviews with NSF Phase IIB awardees, some of whom at least believe that this interpretation is implemented at NSF.7 NSF has imposed further requirements on larger Phase IIB awards.
|
From page 128... ...
Evaluate the competitive advantages of this technology vs. alternate technologies that can meet similar market needs."9 Through survey responses and interviews, several NSF awardee companies indicated that NSF Phase IIB approval has in recent years become strongly focused on opportunities for rapid commercialization.
|
From page 129... ...
These reports are submitted electronically. PHASE IIB AWARDS The NSF Phase IIB program has been in operation since 1998.
|
From page 130... ...
An average NSF investment of $281,000 is associated with average matching investments of $830,000 -- a 3:1 ratio, according to NSF data. The extent to which there is a causal relationship between NSF funding and matching funds is explored through the Phase IIB survey, described below.
|
From page 131... ...
1998 4 799,888 199,972 1999 24 10,069,060 419,544 2000 9 4,570,392 507,821 2001 0 0 0 2002 43 26,866,345 624,799 2003 30 27,259,498 939,983 2004 28 12,049,692 430,346 2005 44 43,514,150 988,958 2006 49 57,812,521 1,179,847 2007 9 7,898,500 1,128,357 2008 21 22,188,527 1,386,783 2009 23 29,150,904 1,325,041 SOURCE: National Science Foundation, private communication. TABLE 5-4 Companies Receiving More Than Two Phase IIB Awards, 1999-2009 Company Number of Phase IIB Awards Intelligent Fiber Optic Systems 6 CFD Research 4 One Cell Systems 3 T/J Technologies 3 Uncopiers 3 Mendel Biotechnology 3 VCOM3D 3 MICROSTRAIN 3 Physical Optics 3 Immersion Corporation 3 wTe 3 Luna Innovations 3 NGIMAT 3 Workplace Technologies Research Institute 3 SOURCE: National Science Foundation.
|
From page 132... ...
Given that the objective of the Phase IIB program is to identify and then provide additional funding for more commercially promising projects, the null hypothesis would be that Phase IIB projects should be more successful. It is useful to compare the two populations to determine the extent of differential success, and to address other program outcomes beyond commercialization, as well as other process metrics.
|
From page 133... ...
Products, processes, or services are in use 25 49 Commercialization is under way 23 22 Project is continuing post Phase II development 23 17 Project has not yet completed Phase II 19 3 Efforts at this company have been discontinued 10 9 Total 100 100 N= 110 117 SOURCE: 2010 Phase IIB Survey, Question 7. Commercial Outcomes The survey asked a number of questions focused on commercial outcomes from the surveyed projects, with the initial aim of determining whether the p rojects had in fact reached the market (see Table 5-8)
|
From page 134... ...
= 42 75 SOURCE: 2010 Phase IIB Survey, Question 13.1. Employment Impacts Survey responses suggest that Phase IIB companies tended to be somewhat larger than Phase II only companies at the time of application.
|
From page 135... ...
= 46 80 SOURCE: 2010 Phase IIB Survey, Question 14. TABLE 5-11 Company Size (Employees)
|
From page 136... ...
. 12 2010 Phase IIB Survey, Question 16.3.
|
From page 137... ...
TABLE 5-13 Change in Employment Number of Employees Phase II Phase IIB Time of application Mean 11 22 Median 5 8 Time of Survey Mean 15 78 Median 8 17 SOURCE: 2010 Phase IIB Survey, Question 16. TABLE 5-14 Summary of Employment Effects Phase II Phase IIB Number of employees at time of application (mean)
|
From page 138... ...
NSF Phase IIB Application and Process In its analysis of the operations of the Phase IIB program, the Committee surveyed only projects that received Phase IIB funding (as confirmed by the NSF awards database and the company itself)
|
From page 139... ...
Unable to raise matching funds 35 Could not raise matching funds that qualified 32 Not aware of the program 8 Not enough funding to be worthwhile 5 Process too onerous 5 Other 30 N (Phase II projects that did not apply for Phase IIB funding) = 74 NOTE: Responses do not sum to 100 percent because respondents could select more than one answer.
|
From page 140... ...
= 110 SOURCE: 2010 Phase IIB Survey, Question 44. The responses confirmed that Phase IIB applications required considerable effort for some companies, with more than 22 percent of companies recording more than 2 months of full-time work from senior staff.
|
From page 141... ...
Interviews with some successful Phase IIB companies confirmed that sales were not universally understood to be acceptable source of matching funds. NSF Phase IIB Funding and Matching Funds One of the primary purposes of the Phase IIB program is to attract additional investment into SBIR awardee companies.
|
From page 142... ...
281 250 N= 100 285 SOURCE: 2010 Phase IIB Survey, Question 31.1; NSF awards data. does not qualify for the Phase IIB option." Self-reported data on funding from NSF tracks quite closely with NSF survey data (see Table 5-22)
|
From page 143... ...
500 500 N= 98 275 SOURCE: 2010 Phase IIB Survey, Question 31.2; NSF awards data. TABLE 5-24 Distribution of Funding by Source of Funding (Number of Responses)
|
From page 144... ...
Venture support (for projects with some venture funding) averaged less than $500,000 per funded project; funding from angel investors was more than $500,000, and four sources provided more funding per funded project than did venture sources.14 The amount of federal agency funding was somewhat surprising given the requirement that Phase IIB awards above $500,000 utilize only private-sector matching funds.
|
From page 145... ...
Overall, these findings suggest that the NSF objective of generating new investment is being partly met. Phase IIB Impacts: Accelerating Commercialization The NSF Phase IIB program is aimed at accelerating the commercialization of products and services.
|
From page 146... ...
. Nine percent of respondents reported that Phase IIB had a transformative effect on the company, while a further two-thirds reported a "substantial long-term positive effect." Phase IIB Impacts: Acquiring Additional Investment As one program objective is to bring in fresh investment, the survey asked respondents whether the Phase IIB match requirements brought in funding that would not otherwise have been acquired by the company.
|
From page 147... ...
The overall average amount was $956,000, and the median was $500,000. Beyond the additional investment that Phase IIB recipients attribute directly to the Phase IIB program, Phase IIB companies have been more successful in securing additional funding beyond the required match.
|
From page 148... ...
= 56 SOURCE: 2010 Phase IIB Survey, Question 39. TABLE 5-32 Additional Investment Reported for the Surveyed Project (Excluding, in the Case of Phase IIB Respondents, Phase IIB Required Matches)
|
From page 149... ...
Phase IIB Impacts: Respondent Perspectives Table 5-34 summarizes overall respondent views of the Phase IIB program. Overall, 98 percent of respondents have positive or very positive views of the program.
|
From page 150... ...
Expanded 40 Kept at about the current level 57 Reduced 3 Eliminated 0 Total 100 N= 106 SOURCE: 2010 Phase IIB Survey, Question 49. This corresponds to respondent views on the adequacy of the individual awards they received: about two thirds of respondents thought they received about the right amount of funding -- the remainder almost all thought they had not received enough.16 However, only about one fifth indicated that the size of awards should be increased if that meant that NSF would award fewer Phase IIB awards (Table 5-36)
|
From page 151... ...
Yes 49 No 30 Not sure 21 Total 100 N= 108 SOURCE: 2010 Phase IIB Survey, Question 52. CONCLUSIONS Overall, the NSF Phase IIB program is supporting the accelerated commercialization of SBIR-funded research.
|
Key Terms
This material may be derived from roughly machine-read images, and so is provided only to facilitate research.
More
information on Chapter Skim is available.