The Small Business Innovation Research and Small Business Technology Transfer programs made more investments in Phase II research projects than Phase 1 feasibility studies from 2018 to 2022, Raj Sharma, co-founder and CEO of Public Spend Forum, said in an interview on Federal News Network.
The market intelligence organization released a report on the impact and effectiveness of SBIR and STTR programs, which could inform the Biden administration as it works toward equitable business growth across the United States, according to Sharma.
Public Spend Forum collated data from different sources to provide an in-depth analysis of the programs’ investments by sector and region.
It found that SBIR Phase I funding essentially remained the same, from $592 million in 2018 to $581 million in 2022. However, Phase II funding grew from $1.9 billion in 2018 to $2.6 billion in 2022. STTR Phase I investments totaled $115 million in 2018 and rose to $196 million in 2022, but Phase II investments increased from $244 million to $336 million.
“I think that’s a good sign that phase 2 has grown by 37%, that means more of those technologies are being funded to grow and to further develop,” Sharma commented.
The programs also granted 38 percent of their awards to biotechnology and medical technology projects, while advanced manufacturing and computing accounted for the second and third highest investments during the period.
Sharma and his team will focus next on Phase III funding, which companies often fail to reach due to commercialization challenges and lack of government contract follow-through.
