What is SBIR (Small Business Innovation Research)?
A federal program that reserves a portion of agency R&D budgets for competitive awards to small businesses conducting innovative research.
The Small Business Innovation Research (SBIR) program is a highly competitive federal program that encourages small businesses to engage in research and development with commercialization potential. Federal agencies with R&D budgets exceeding $100 million must allocate 3.2% to SBIR awards.
SBIR awards come in three phases: Phase I (feasibility study, typically $50K-$275K over 6-12 months), Phase II (full R&D, typically $500K-$1.5M over 2 years), and Phase III (commercialization, funded by non-SBIR sources). Eleven federal agencies participate in the SBIR program, with the Department of Defense, National Institutes of Health, and Department of Energy being the largest funders.
SBIR is distinct from traditional procurement — it funds innovation rather than buying existing products or services. Awards are made based on scientific merit and commercialization potential.
Related Terms
A federal program similar to SBIR that requires small businesses to partner with a research institution for R&D funding.
SAM.govThe System for Award Management — the official U.S. government website where businesses register to bid on federal contracts and where agencies post opportunities.