MSU TechLink SBIR/STTR Assistance Programs

 
Eleven federal agencies participate in the Small Business Innovation Research (SBIR) program, with six also participating in the Small Business Technology Transfer (STTR) program, which together provide over $2 billion per year exclusively to small businesses for innovative research leading to new products or technologies.  These highly competitive programs are mandated by Congress, and can typically provide up to $100,000 for a six month feasibility study (Phase I), and up to $750,000 for a two year prototype development effort (Phase II).  The goal of these programs is “Phase III,” which is commercial production and sales, or procurement by government programs, such as the Department of Defense.  No SBIR/STTR funding is provided for Phase III.

Since 1984, Montana companies have won over $106 million in the SBIR/STTR programs, helping to create many successful technology companies.  With coordinated statewide programs to assist Montana companies in competing for this funding, Montana has recently been ranked second in the nation for Phase I SBIR/STTR awards compared to GSP (Gross State Product), and second in the nation for Phase I award rates (per proposals submitted).  Currently SBIR/STTR funding in the state is more than $10 million per year.  

Note that this is "Seed Funding" that helps create and grow clean new commercial businesses.  Unlike Venture Capital (which is rare in Montana), SBIR funding involves no loss of equity, and does not have to be repaid (as with loans).  Also, SBIR/STTR funding allows Montana to keep its promising technology businesses here in the state - many small businesses pursuing VC have found that moving out of state is a prerequisite for accepting VC investments.

MSU TechLink, in collaboration with Montana State University VP for Research office, works closely with the Montana Department of Commerce MTIP Program and the State Technology Partnership Committee, to ensure all qualified Montana companies have access to the best available SBIR assistance matched to their specific needs.  TechLink has developed several specialized and innovative SBIR assistance programs, often cited as a model for other states by the National Science Foundation.

The following programs are currently internally funded by TechLink and the MSU VP for Research office to assist Montana companies.  These programs have proven to be among the most effective in the nation, with Phase I award rates exceeding 1/3, and Phase II award rates exceeding 2/3 (both more than double the national averages).  These and TechLink's other related assistance programs have directly assisted Montana companies in winning approximately 100 SBIR/STTR awards valued at over $38 million.  Regional SBIR/STTR awards directly assisted by TechLink programs now total over $91 million.

Based upon observations by experts the single greatest factor for SBIR success, especially in rural states like Montana, is partnering with a research institution such as a university, the SBIR Partnerships Development Program has been developed to help foster such partnerships with Montana University System (MUS) researchers.  The program brings in expert consultants, graphic designers, and other resources, and can even help find appropriate matches between Montana companies and MUS scientists.  Small grants are provided to both partners as incentives to follow best practices for proposal success, and to help to overcome the perceived barriers for new collaborations and proposal development.  

Specific assistance provided under this program is essentially identical to that provided under TechLink's DoD Phase I Assistance Program, but tailored to the specific agency, and with the addition of matching incentive grants for both the MUS researcher and the company for complete draft proposals submitted for review by early deadlines.*  Participation is limited to companies collaborating with MUS researchers on Phase I SBIR/STTR proposals, and the program can help find appropriate collaborators, if not already chosen.

See SBIR/STTR Advantages for University Researchers

A Phase I SBIR or STTR award is a prerequisite for a much larger Phase II award, but only about one-third of Phase I recipients go on to win Phase II, which can lead to commercialization success.  Any Montana company with a Phase I is eligible for Phase 1.5 assistance, which utilizes the same experts and commercialization planning, a critical component often found lacking in Phase II proposals, and important to foster sustainable industry growth in the state.

Specific assistance provided under this program is essentially equivalent to that provided under TechLink's DoD Phase II Assistance Program, but tailored to the specific agency.*  Additional partnering assistance for commercialization, or manufacturing planning assistance from the Montana Manufacturing Extension Center, may be provided as appropriate. 

*Note: No direct payments can be made to companies with 20 or more previous SBIR/STTR awards, under any of these SBIR/STTR assistance programs.

For assistance or more information about these programs please contact:

Ray Friesenhahn
SBIR & Technology Transition Manager
900 Technology Blvd. Suite A
Bozeman, MT 59718
Phone: (406) 994-7726
Email: rayf [at-sign] montana.edu

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