CITEC, Inc. - Manufacturing and Technology Solutions

Small Business Innovation Research Grants
and
New York State FAST
(Federal and State Technology Partnership)

Providing innovative New York companies with
hands-on SBIR and STTR assistance

Funding R & D Through the Federal SBIR and STTR Program
The Small Business Innovation Research/Small Business Technology Transfer Program (SBIR/STTR) is a highly competitive federal R & D funding program that encourages small business to explore their technological potential and provides the incentive to profit from its commercialization. By enabling qualified small businesses to participate in the nation's R & D activities, high-tech innovation is stimulated and the United States gains entrepreneurial spirit as it meets its specific research and development needs.

Competitive Opportunity for Small Business
SBIR targets the entrepreneurial sector because that is where most innovation and innovators thrive. However, the risk and expense of conducting serious R & D efforts are often beyond the means of many small businesses. By reserving a specific percentage of federal R & D funds for small business, SBIR enables small business to compete on the same level as larger businesses. SBIR funds critical startup and development stages and encourages the commercialization of the technology, product, or service, which, in turn, stimulates the U.S. economy. Since enacted in 1982 as part of the Small Business Innovation Development Act, SBIR has helped thousands of small businesses to compete for federal research and development awards. The companies' contributions have enhanced the nation's defense, protected our environment, advanced health care, and improved our ability to manage information and analyze data. Each year, New York State companies receive between $40 million and $60 million in SBIR and STTR awards.

The SBIR System
Each year, 10 federal departments and agencies are required to reserve a portion of their R & D funds for award to small business. The agencies listed below independently designate R & D topics and accept proposals:

Department of Agriculture
Department of Commerce
Department of Defense
Department of Education
Department of Energy
Department of Health and Human Services
Department of Transportation
Environmental Protection Agency
National Aeronautics and Space Administration
National Science Foundation

Three-Phase Program
Following submission of proposals, agencies make SBIR awards based on small business qualification, degree of innovation, technical merit, and future market potential. Small businesses that receive awards or grants then begin a three-phase program:

Phase I is the startup phase. Awards of up to $100,000 for approximately six months support exploration of the technical merit or feasibility of an idea or technology.
Phase II awards of up to $750,000 for as many as two years, expand Phase I results. During this time, the R & D work is performed and the developer evaluates commercialization potential. Only Phase I award winners are considered for Phase II.
Phase III is the period during which Phase II innovation moves from the laboratory into the marketplace. No SBIR funds support this phase. The small business must find funding in the private sector or other non-SBIR sources.

SBIR Qualifications
Small businesses must meet certain eligibility criteria to participate in the SBIR program including:

American-owned and independently operated
For-profit
Principal researcher employed by business
Company size limited to fewer than 500 employees

NYS FAST Program
In 2001, NYSTAR was awarded matching funds through the Small Business Administration's Federal and State Technology Partnership to create an SBIR/STTR mentoring network. This network helps bridge a gap for small, innovative technology companies in New York by linking these businesses with technical guidance, research partners, and strategic business assistance. NYSTAR was awarded a second SBA award in 2002 to continue and expand this network.

NYSTAR, along with the Central New York Technology Development Organization, will coordinate activities among its established university-based research institutions, Centers for Advanced Technology (CAT), Regional Technology Development Centers (RTDCs such as CITEC), and New York's Small Business Development Centers (SBDCs), State, regional and local economic development organizations, to further assist small businesses. This mentoring network will assure access to SBIR and STTR assistance to all companies within New York.

New York FAST can provide your business with:

Answers on SBIR/STTR components and which alternatives make the most sense for your company;
Strategies on how to approach SBIR/STTR;
Coaching on licensing issues;
Coaching throughout the proposal writing process;
Proposal review before submission to the funding agency;
Transition assistance from Phase I to Phase II;
Unfunded proposal reviews (understanding what improvements are needed for a rejected proposal); and
Commercialization strategies

Direct service delivery and outreach is performed through three regional specialists, each resident within one of NYSTAR's RTDCs. Each RTDC, a not-for-profit affiliated with the Federal Manufacturing Extension Partnership, helps New York's small innovative technology companies and smaller manufacturers become more competitive and successful.

The Regional SBIR specialist for the North Country is Marcie Sonneborn with Central New York Technology Development Organization, an RTDC located in Syracuse. She can be contacted via phone (315-425-5144), fax (315-233-1259), or e-mail.

NYSTAR: Your SBIR Partner
The New York State Office of Science, Technology & Academic Research (NYSTAR) was created by Governor George E. Pataki and the Legislature to help make New York a leader in high-technology academic research and economic development. Through a host of new, innovative programs and initiatives -- including more than 40 world-class, state-of-the-art research centers, 10 business outreach centers, technology transfer incentive grants, and faculty retention initiatives -- NYSTAR's programs cover the technology development continuum from cutting-edge research to commercialization of new technologies and modernization of existing businesses.

The October 2001 issue of Inc magazine ranked New York State as second in the nation in the number of fastest growing private sector companies, the State's strongest ranking in 12 years and a major jump over the prior year's No. 7 ranking. More than 60% of the New York companies on the Inc 500 list are high-tech related, and 45% of that group are computer software, computer hardware, or Internet-related.

Governor Pataki and the Legislature have advanced several significant initiatives to expand high technology and biotechnology business and job-creation opportunities in New York, including the Governor's innovative Centers of Excellence. Since 1995, the State has fostered the growth of New York's high-tech and biotech industries by supporting the investment of more than $1 billion in New York's technology business sector and its world-class research laboratories and academic centers.

New York is committed to working with you to help your company expand and flourish. Contact your Regional SBIR specialist or NYSTAR to learn how to make us your partner in success.

To find out more about New York State's FAST program, click on the link below.