Review of the SBIR and STTR Programs at the National Science Foundation (2023) / Chapter Skim
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3 NSF SBIR/STTR Processes
3 NSF SBIR/STTR Processes
Pages 41-64
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From page 41... ...
. The chapter considers the impact of agency processes on the participation of woman-owned firms and firms owned by socially and economically disadvantaged individuals, as well as firms from states that receive few NSF research awards, and offers a detailed discussion of how the agency's SBIR/STTR program directors measure success.
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From page 42... ...
The organizational structure provides an enhanced ability to train and socialize new program directors, who deal exclusively with SBIR/STTR applicants, award winners, and potential applicants.2 The office employs a centralized portal for applicants with clear rules and requirements for NSF's SBIR/STTR programs while allowing program directors to use their discretion and expertise in reviewing and selecting awardees. NSF states that it encourages SBIR/STTR proposals in nearly all technology and market sectors except for clinical trials and Schedule I controlled substances.
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From page 43... ...
, are similarly less prescriptive in their funding solicitations, NSF is broader in its topic solicitation, likely because its statutory mission is quite broad -- "to promote the progress of science; to advance the national health, prosperity, and welfare; to secure the national defense; and for other purposes."3 NSF SBIR/STTR topic areas serve as a mechanism for dividing workload among program directors, not as an exhaustive list of NSF interests or a reflection of relative priorities. One program director noted that the focus of the SBIR/STTR programs is as broad as NSF, with program directors having the autonomy to grow and develop their topic areas as they see fit.
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From page 44... ...
THE APPLICATION PROCESS As discussed above, NSF's SBIR/STTR programs solicit proposals that seek funding for innovations for a broad range of technologies. The award structure is relatively simple compared with that of other agencies, with fixed award amounts that do not vary by topic.4 The application process for a Phase I award starts with a Project Pitch, which serves to determine whether an applicant is a good fit for the program before the firm dedicates the resources necessary to prepare a Phase I proposal.
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From page 45... ...
For fiscal year 2023, these are: November 22, 2022–March 1, 2023 March 2, 2023–July 5, 2023 July 6, 2023–November 1, 2023 Phase I applications undergo merit review 1–3 months after Phase I submission window closes Notification of Phase I proposal 4–6 months after Phase I submission acceptance window closes Receive funding of up to $275,000; begin 5–6 months after Phase I submission Phase I research and development window closes Apply for Phase II SBIR funding (only 6–24 months after beginning Phase I, small businesses with an NSF Phase I during one of three Phase II SBIR award can submit a Phase II proposal) proposal submission windows Phase II applications undergo merit review 1–3 months after Phase II submission window closes Notification of Phase II proposal 4–6 months after Phase II submission acceptance window closes Receive funding of up to $1 million; begin 5–6 months after Phase II submission Phase II research and development toward window closes commercialization SOURCE: NSF SBIR/STTR website and presentations to the committee.
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From page 46... ...
Only 30 percent of firms submitting a successful Project Pitch actually do submit a Phase 1 proposal6; as shown in Figure 3-2, however, it does not appear that the adoption of the Project Pitch has substantially affected the number of applications to the 3,500 3,000 2,500 2,000 Number 1,500 1,000 500 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Fiscal Year Number of Phase I SBIR Applications Number of Phase I STTR Applications FIGURE 3-2 Number of NSF SBIR/STTR Phase I applications by year, fiscal years 2002–2021.
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From page 47... ...
Phase I Applications As noted, firms submitting a successful Project Pitch have 1 year to submit a full proposal. Before NSF adopted the Project Pitch, SBIR/STTR applications were often returned without review if the paperwork was not completed correctly.7 Now, using feedback from Project Pitch, program directors can help firms fix application snafus that might have caused an otherwise meritorious application to be returned.
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From page 48... ...
They also mentioned finding reviewers by searching LinkedIn or through research institutions; outreach events; or interest expressed by entrepreneurs, scientists, and researchers. Some program directors prefer to use ad hoc reviewers, rather than review panels for proposal review because with this approach, the turnaround is generally faster and managing the review process is less complicated.
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From page 49... ...
As discussed in Chapter 4, the share of NSF SBIR/STTR awardees without previous SBIR/STTR awards from any agency has increased over time, rising from 19.0 percent in FY2000 to 81.8 percent in FY2021. Overall, NSF funds more than 300 SBIR and STTR awards annually, a number that grows each year with increases in the agency budget, and the vast majority of these awardees never received a previous federal grant, even outside of the SBIR/STTR programs.8 8 For COVID-19 funding, NSF made it clear that prior awardees could be funded (NSF, 2020)
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Assistance to Phase I Awardees Phase I awardees are offered I-Corps, a Beat the Odds Boot Camp (see Box 3-1) , and access to the Commercialization Assistance Program.
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funds to the opportunity to apply for Phase IIB or other supplemental funding and assistance. Phase II applicants may request up to $50,000 in TABA funds.
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Phase IIB award periods range from an additional 12 months for a Phase IIB matching request of less than $250,000 to an additional 24 months for Phase IIB matching requests of $250,000–$500,000. Review of Phase IIB funding requests is based on intellectual merit and the potential for broad impacts and is completed internally by NSF SBIR/STTR program directors.
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(Phase IIA) awards provide funding to foster partnerships between firms receiving Phase II BOX 3-2 Participation in the NSF Commercialization Programs BioInfoExperts, an NSF Phase II awardee, specializes in pathogen genomics.
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Community Colleges (Phase IICC) awards provide up to $40,000 in funding for partnerships between firms receiving Phase II awards and community college researchers and students.
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Training for New Program Directors Many of the program directors were introduced to the SBIR/STTR programs as awardees, reviewers, or both, so they understand the operational side of the programs. Program directors new to the programs learn the job by shadowing other SBIR/STTR program directors.
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How Program Directors Measure Success The goals of the SBIR and STTR programs are to (SBA, n.d.) stimulate technological innovation; meet federal R&D needs; foster and encourage participation in innovation and entrepreneurship by women and socially or economically disadvantaged persons; increase private-sector commercialization of innovations derived from federal R&D funding; and for STTR only, facilitate the transfer of technology developed by a research institution through the entrepreneurship of a small-business concern.
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From page 57... ...
This training has three main components: guidance by program directors during the Project Pitch and Phase I and II application processes, feedback from reviewers, and participation in the Beat the Odds Bootcamp. Going a step further, some program directors mentioned broadening the pool of participating entrepreneurs as a measure of success, consistent with the third goal of the SBIR/STTR programs -- fostering and encouraging participation in innovation and entrepreneurship by women and socially or economically disadvantaged persons.
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From page 58... ...
In general, while program directors were uniform in highlighting the importance of broadening participation and diversity with respect to sex, race/ethnicity, geography, and discipline, they are uncertain about how they can do more given their workloads. Although program directors mentioned giving talks at conferences, participating in the city-to-city SBA Road Tours, and talking to potential applicants, many pointed out that communication and diversity activities are handled by others in the directorate, such as the communication specialist, who works with a public relations firm to develop an outreach campaign.
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Examples of such efforts include joining other directorates' office hour sessions with their awardees, introducing the SBIR/STTR programs at various NSF meetings, and participating in crossdirectorate working groups. The program directors described broadening geographic participation as something they take seriously.
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. Still, NSF's relatively simple approach involving fixed award amounts and the structure of Phase I, Phase II, and Phase IIB awards helps provide clarity to applicants.
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Recommendation 3-2: NSF should allow companies to submit more than one SBIR/STTR Project Pitch per application cycle. Recommendation 3-3: NSF should provide additional tools and training to ensure that the NSF SBIR/STTR programs continue to work toward greater diversity of reviewers, applicants, and awardees.
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How many of the reviewers come from within their program? How often do they serve on the review panels?
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NSF SBIR/STTR PROCESSES 63 – Proposed technology is high risk versus the need for a specific service or tool? – Is the applicant a multiple versus first-time applicant or awardee ("mills"/"frequent flyers")
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