Small Business/SBIR

Survey Shows SBIR's Significant Impact

A MISSION-CRITICAL SURVEY DESIGNED TO quantify commercial activity associated with the Small Businesses Innovation Research (SBIR) program Phase II awards indicates that the program is a viable part of the national economy. It has been generating nongovernment market revenue and significant opportunities for strategic alliance partnering and for new entrants into the SBIR program.

The results show that about 450 commercial products and services are associated with Phase II awards, generating revenues in nongovernment markets in a broad spectrum of industry sectors. Specifically, in more than one in three Phase II contracts awarded by NASA over the 1983–94 period, the technology was either incorporated in products and services generating revenues in nongovernment markets, or the firm took significant action to develop a commercial venture at least partially based on the technology.

The NASA Small Business Innovation Research (SBIR) exhibit at EAA AirVenture '99 in Oshkosh, Wisconsin.

The number of firms receiving NASA Phase II awards between 1983 and 1994 was approximately 725, according to the survey. The survey results demonstrate significant commercial intent regarding application of NASA SBIR technology in nongovernment markets. The survey also shows that the degree of strategic alliance partnering among SBIR and non-SBIR firms regarding ventures producing these products and services is significant.

The results also showed substantial opportunity for newcomer firms to enter the NASA SBIR program. About 90 percent of all firms winning NASA Phase II awards have received a total of three or less NASA Phase II awards. About 46 percent of the firms receiving NASA Phase II awards over the past five years were new entrant firms, according to survey results.

The primary purpose of NASA's SBIR program is to meet NASA mission-related technology needs by tapping the capabilities of small, high-technology firms, thus contributing to the continued viability of the nation's small business sector. The commercial application of NASA-funded SBIR technology is a secondary objective and an added benefit, but imperative under NASA's Strategic Plan.

The commercial relevancy of NASA-funded technology is a primary mission goal for the agency, and NASA is required by law to demonstrate, among other aspects, the contribution of its programs to the nation's economic well-being. Consistent with these criteria, NASA's SBIR commercial survey provides a mechanism to identify commercial applications of NASA SBIR technology and various measures of associated commercial activity. The survey is designed to reveal commercial intent in those cases in which the firm has taken significant steps toward a commercial venture at least partially based on NASA SBIR technology, but a resulting product or service has not yet been, or perhaps never will be, sold.

SBIR survey results were based on evaluations of Phase II proposals of high technical merit according to specific attributes, including recipient demonstration of, and credibility in, commercial intent, past success in bringing SBIR technology to commercial application and ability to bring the necessary elements of a commercial venture to bear. Firms generally are not requested to update the survey information more frequently than about once every two to three years, but voluntary updates are invited at any time. NASA's SBIR commercial metrics survey form can be found at www.sbir.nasa.gov

For more information, contact Jack Yadvish at NASA Headquarters. Call: 202/358-1981,
E-mail: jyadvish@mail.hq.nasa.gov Please mention you read about it in Innovation.