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Technology Commercialization

SBIR/STTR Program

SBIR/STTR

The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs are competitive federal grant programs designed to spur economic development and stimulate technological innovation and commercialization through small businesses, including faculty startups. For both grant programs, the application is always submitted by the small business, not by the University. 

SBIR Program Overview

The SBIR program was established to engage small businesses in federal research and development with potential for commercialization. Key features include: 

  • Eligibility: US-owned and operated small businesses with fewer than 500 employees 
  • Funding structure:  
    • Phase I: Feasibility studies (typically $50,000-$250,000 for 6 months) 
    • Phase II: R&D work (typically $750,000-$1,700,000 for 2 years) 
    • Phase III: Commercialization (no SBIR funds, but potential for non-SBIR government/private funding) 
  • Participating agencies: 11 federal agencies with R&D budgets over $100 million (including DOD, HHS/NIH, NSF, DOE, NASA) 

STTR Program Overview

The STTR program is similar to SBIR, but requires small businesses to formally collaborate with a research institution. Key features include: 

  • Eligibility: Same as SBIR, plus formal collaboration with a nonprofit research institution
  • Research institution partnership: Requires the small business to partner with a nonprofit research institution (university, federal laboratory, etc.) 
  • Funding structure: Similar to SBIR with Phase I, II, and III 
  • Participating agencies: Five federal agencies (DOD, HHS/NIH, NSF, DOE, NASA) 
  • Work allocation: Small business must perform at least 40% of the work; research institution must perform at least 30% 

SBIR & STTR: What’s Different?

  • Research institution partnership: Required for STTR, optional for SBIR
  • Principal investigator location: For STTR, the PI can be primarily employed by either the small business or research institution; for SBIR, the PI must be primarily employed by the small business
  • Number of participating agencies: 11 for SBIR, 5 for STTR 

Benefits of These Programs

  • Non-dilutive funding (no equity given up)
  • Retention of intellectual property rights
  • Validation of technology through federal support
  • Potential for follow-on funding and contracts
  • Technical and business assistance provided by many agencies 

Internal UK Processes & Resources to Support Faculty Engaging in SBIR/STTR Grants

Establish confidentiality with UK

As soon as a company contacts you about an SBIR or STTR collaboration opportunity of you’ve legally formed and named a new faculty startup company is, contact UK Innovate’s Tech Commercialization team to sign a non-disclosure agreement (NDA) between the company and UK to cover discussions about UK innovations, grant proposals, product development plans, and agreement negotiations.

Update your Conflict-of-Interest Management Plan

UK does allow faculty to engage in research with outside companies, as well as faculty engaging in research for their own startup companies. However, if you have a faculty-led startup, you must be mindful of “wearing multiple hats” and managing this conflict.  

  • As a first step, complete a Conflict-of-Interest Management Plan to disclose and manage your hats. 
    • Contact: Emily M. Bradford, Ph.D., Office of Sponsored Projects. 
  • UK Innovate has a comprehensive “Wearing Multiple Hats” overview document. Please contact our office at ukinnovate@uky.edu

Work with UK Innovate R&D Partnerships, Technology Commercialization and Ecosystem Teams:

UK Innovate has multiple team members who work together to support your SBIR/STTR journey, whether you’re working with an outside company or have created your own. 

  • We support these grant applications in multiple ways: 
    • Put in place non-disclosure agreements to protect confidential information for both parties 
    • Help you manage your relationship with the company 
    • Help manage the University created Intellectual Property (IP) 
    • Provide required letters of support for the small business to submit for the application 
    • Manage and negotiate associated IP agreements (options, licenses, etc.) 
    • Help you navigate the internal grants and contracting process 
    • Provide monthly SBIR Unplugged webinars where you can ask questions, network, and  
    • And more! 

UK Startup and SBIR/STTR Resources and Related Links

“SBIR Unplugged”

“SBIR Unplugged” takes place via zoom every third (3rd) Thursday afternoon of each month at 4pm ET:  https://www.launchblue.org/sbir-unplugged  

During the open, informal SBIR/STTR office hour, you’ll meet Eric Hartman of UK Innovate and Kristine McNeil of KY Innovation (under the Kentucky Cabinet for Economic Development).  Kristine McNeil heads the SBIR/STTR matching program for Kentucky (see: https://www.kyinnovation.com/sbir/). 

Innovation and Startup Training

There are many training and informative resources available through UK Innovate’s Ecosystem pillar. The Ecosystem Team has several valuable training courses that will help you gain information to help strengthen an SBIR/STTR grant application, including Launch Blue’s UAccel-Regional I-Corps Hub: https://www.launchblue.org/uaccel 

 

Southeast Xlerator Network

UK is the academic lead of the Southeast Xlerator Network, https://xleratornetwork.com/ . The Xlerator Network has many valuable programs including SBIR/STTR training, see:  https://xleratornetwork.com/sbir/ 

KSEF (Kentucky Science & Engineering Foundation)

KSEF (Kentucky Science & Engineering Foundation) offers “micro-awards” to help with the preparation of an SBIR/STTR application: https://www.ksef.kstc.org/micro-awards 

The KSEF micro-award funding can be used for consultants such as the Eva Garland Consulting firm:  https://www.evagarland.com/ 

MidSouth REACH3 Funding Opportunity

A federally-funded program for the university research related to UK innovation product development. Dr. Feni Kadakia is UK’s program manager for the REACH3 funding program. The REACH3 funds are specifically designed for product development which include milestone-driven, “killer” experiments but can also be used for consultants and contract research organizations. It is a great way to fund further develop the UK innovation and de-risk it. The program funds the academic research, and the results can be used to general preliminary product development data to strengthen an SBIR/STTR grant application. There are spring and fall cycles of the REACH3 program.

NIH Small business Education and Entrepreneurial Development (“SEED”)

The NIH Small business Education and Entrepreneurial Development (“SEED”) office offers an abundance of resources for new startup companies and small businesses. https://seed.nih.gov/small-business-funding/how-to-apply/before-you-apply   

Additional Resources

Good, helpful reading: Winning SBIR/STTR Grants from the Eva Garland consulting firm. The Eva Garland firm published a good, helpful book with a 10-week plan for writing and preparing an NIH Phase 1 SBIR/STTR grant application. The book is available on Amazon. 

Frequently Asked Questions

I’m not sure who to contact to form a company?

  • UK Innovate has a list of outside counsel that can help you incorporate your new business that have worked with UK startups. Please contact our office for this list.  

Can I be the PI on an SBIR grant as a full-time University faculty member?

  • The only way you can be a PI on an SBIR grant is if you are employed over 51% of your time at the small business.
  • You can be the PI on an STTR grant as a full-time University faculty member with no employment at the small business. 

As a University subaward, what documentation do I need to provide to the small business?

  • Typically, the University subaward packet will include the University budget, budget justification, overview of facilities, resources, and equipment to be used, a letter of support from all University Key Personnel, a letter of support from UK Innovate, a letter of support from OSPA, and Key Personnel biosketches. Some agencies have other requirements so please consult with PDO, CGS, and UK Innovate to ensure all documentation is covered. 
Technology Commercialization

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