blog post
SBIR vs STTR: Understanding the Programs That Fund Innovation
Over $4 billion in annual federal R&D funding is available through SBIR and STTR. Here is how to choose the right program.
Two Programs, One Mission
The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs represent over $4 billion in annual federal R&D funding for small businesses. But understanding which program fits your company can be confusing.
SBIR — Go It Alone
SBIR is designed for small businesses (under 500 employees) to conduct federal R&D. The key: your company does the primary research. Phase I awards typically range from $50K-$275K for 6-12 months of feasibility research. Phase II awards range from $500K-$1.7M for full development.
STTR — Partner With Research
STTR requires a formal partnership with a nonprofit research institution (university, FFRDC, etc.). The research partner must perform at least 30% of the work. This is ideal if your innovation builds on academic research or you need specialized lab capabilities.
Which Should You Pursue?
If you have in-house R&D capabilities, start with SBIR. If your technology emerged from university research or you need academic partnerships, STTR is your path. Many companies pursue both.