Comstock hearing explores impact of Small Business Innovation Research Act, Small Business Technology Transfer programs

Comstock hearing explores impact of Small Business Innovation Research Act, Small Business Technology Transfer programs

U.S. Rep. Barbara Comstock (R-VA) convened a hearing on Thursday to explore the impacts and results of the Small Business Innovation Research Act (SBIR) and Small Business Technology Transfer (STTR) programs.

Authorization for SBIR and STTR programs will expire in September 2017, and Comstock, the chairwoman of the House Science, Space and Technology Subcommittee on Research and Technology, convened the hearing to ensure the effective use of taxpayer dollars.

“Converting scientific breakthroughs into innovations creates new industries, new businesses and new jobs,” Comstock said. “Such innovation transforms commerce, everyday life and our entire society. Risk-taking entrepreneurs and small businesses are the catalysts for innovation. They are the catalysts for economic growth, for generating the family and community sustaining jobs that we need so badly.”

SBIR, which President Ronald Reagan signed into law in 1982, was designed to boost innovation and small business participation in federal research and development efforts. STTR, meanwhile, was established in 1992 to bridge the gap between basic science and the commercialization of innovations by requiring small business collaboration with non-profit research institutions.

“These two programs accelerate technological innovation and commercialization of new products and services by small businesses,” Comstock said. “They also help the Department of Defense and other federal agencies meet their research and development needs.” 

Federal agencies with large extramural research budgets — more than $100 million annually for the SBIR program and more than $1 billion annually for STTR — award competitive grants to small business to develop and commercialize technology, Comstock added.

“Since inception, participating federal agencies have awarded SBIR and STTR contracts and grants to small businesses totaling more than $40 billion,” Comstock said. “A number of companies that use SBIR are located in my Congressional district (in) northern Virginia.”

U.S. Rep. Lamar Smith (R-TX), the chairman of the House Science, Space and Technology Committee, added that SBIR and STTR companies created parts for NASA’s Mars Rover and have equipped military men and women with innovative technology.

“There are still ways to improve SBIR and STTR and assure taxpayers are getting the greatest return for the investments of their hard-earned dollars,” Smith said. “Both the SBIR and STTR programs are funded through a ‘tax’ on federal agencies with large research budgets. Agencies with research budgets exceeding $100 million per year are required to set aside three percent of their budgets to support SBIR. That is 15 times more than the initial tax in 1982. Agencies with research budgets surpassing $1 billion per year are required to set aside 0.45 percent of their budget for STTR grants.”

The hearing was held to determine whether taxes on basic research are hurting fundamental scientific research, Smith said, and if there are controls in place to detect waste, fraud and abuse.