1. INDUSTRIAL INNOVATION PARTNERSHIPS DISCOVERY TO INNOVATION The National Science Foundation Small Business Innovation Research (SBIR) Small Business Technology Transfer (STTR) Programs Ben Schrag bschrag@nsf.gov Division of Industrial Innovation and Partnerships

2. DISCOVERY TO INNOVATION 2 NSF SBEENGGEOEHRCISEBIOMPS EECECCSCMMIIIPCBET Directorates Divisions SBIRSTTRGOALIPFII/UCRC Programs

3. DISCOVERY TO INNOVATION 3 NSF Division of Industrial Innovation and Partnerships Vision - To be the pre-eminent federal resource driving the expansion of our nations innovation capacity by stimulating partnerships among industry, academe, investors, government and other stakeholders Mission – IIP will enhance our nations economic competitiveness by catalyzing the transformation of discovery into societal benefits through stimulating partnerships and promoting learning environments for innovators

4. INDUSTRIAL INNOVATION PARTNERSHIPS DISCOVERY TO INNOVATION The design, invention, development and/or implementation of new or altered products, services, processes, systems, organizational structures, or business models for the purpose of creating n nn new value for customers and financial returns for the firm Innovation* *Innovation Measurement A Report to the Secretary of Commerce January 2008

5. DISCOVERY TO INNOVATION 5 ENG NSF GOALII/UCRC PFI ERC NSF STTR NSF SBIR Academia Small Business Investors Industry Valley of Death -----------II-R---- ------II-B--------------------- ------------- Supplements Resources Available ($) Discovery DevelopmentCommercialization Level of Development From Angus Kingon AccelerateInnovation Innovation Spectrum

7. DISCOVERY TO INNOVATION 7 Funding Criteria Must be high-payback innovations involving high risk and commercial potential Demonstrate strategic partnerships with research collaborators, customers and equity investors We do NOT fund –Evolutionary optimization of existing products and processes or modifications to broaden the scope of an existing product, process or application –Analytical or market studies of technologies

8. DISCOVERY TO INNOVATION 8 Review Criteria (Technical) Intellectual Merit –A sound approach to establish technical & commercial feasibility –Technical Team qualifications –Sufficient access to resources –Reflects state-of-the-art

9. DISCOVERY TO INNOVATION 9 Review Criteria (Commercial) Broader/Commercial Impacts –What may be the commercial and societal benefits of the proposed activity? –If the benefit is primarily commercial, does the potential impact warrant significant NSF support? –Does the business team possess the relevant skills to commercialize the proposed innovation? –In what business skill areas is the team lacking and how do they plan to fill these gaps? –Has the proposing firm successfully commercialized SBIR/STTR- supported technology where prior awards have been made? (Or, has the firm been successful at commercializing technology that has not received SBIR/STTR support?) –Evaluate the competitive advantage of this technology vs. alternate technologies that can meet the same market needs. – Does the proposal lead to enabling technologies (instrumentation, software, etc.) for further innovation? – How well is the proposed activity positioned to attract further funding from non-SBIR sources once the SBIR project ends?

10. DISCOVERY TO INNOVATION 10 Program Information Funding Level –NSF ~ $120 million (for Phase I, Phase II, Phase IIB combined) –Federal ~ $2.6 billion total in FY09 (11 agencies) –SBIR = 2.5% and STTR = 0.3% of NSF budget Applicant must be a for-profit Small Business (500 or fewer employees) located in the U.S. At least 51% U.S.- owned by individuals and independently operated PIs primary employment is with small business during the project

11. DISCOVERY TO INNOVATION 11 NSF SBIR Program $120 M/year in chunks of $150K (Phase I) and $500K (Phase II) Broad topics –Biotech and Chemical Technologies – 3 Program Managers –Information and Communications Technology – 3 Program Managers –Nano/Advanced Materials and Manufacturing – 4 Program Managers –Education Applications – 1 Program Manager Placing bets on high-risk/high-impact innovation research –NOT Basic Research –NOT Equity Investment –NOT contract R&D Solicitation released twice per year (in Sept. and March) Two due dates: Dec. and June All proposals are externally-reviewed Reviewers: Academic, Equity Investors, Industrial Reviews: Technology and Commercial reviewers Dialog encouraged throughout the process Decision made three-four months after proposal receipt Cash in the bank 6 mos after proposal receipt After the cash, immersion in NSF network

12. DISCOVERY TO INNOVATION 12 Nano/Materials Topics AM1 – Electronic and Magnetic Materials AM2 – Optical and Optoelectronic Materials AM3 – Materials for Solar Energy Applications AM4 – High-temperature Materials AM5 – Structural Materials AM6 – Coatings and Surface Modification AM7 – Smart and Specialized Materials AM8 – Materials for Sustainability N1 – Nanomaterials N2 – Nanomanufacturing N3 – Nanoelectronics and Active Nanostructures N4 – Nanotechnology for Biological and Medical Applications N5 – Instrumentation for Nanotechnology

13. DISCOVERY TO INNOVATION 13 Thank You bschrag@nsf.gov

14. DISCOVERY TO INNOVATION 14 NSF SBIR Program Worlds biggest seed-stage program Focus on market not technology Powerful transition tool Deep ties to private sector High-leverage for post-academic effort