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Average Annual Federal Small Business Innovation Research and Small Business Technology Transfer Funding per $1 Million of Gross Domestic Product (Dollars)

State Indicator S-55

Funds awarded through the federal Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs support R&D and technological innovation in companies with 500 or fewer employees. This indicator represents the extent to which small business firms in a state are pursuing research projects that meet federal R&D needs and attract federal support.

Phase I awards support small business efforts to establish the technical merit, feasibility, and commercial potential of a proposed research effort. SBIR and STTR Phase I awards normally do not exceed $150,000 total costs for 6 months. Phase II awards support businesses to further their R&D toward commercialization. Generally, only Phase I awardees are eligible for a Phase II award. SBIR and STTR Phase II awards normally do not exceed $1,000,000 total costs for 2 years. The total award dollars include both Phase I and Phase II SBIR and STTR awards.

Because of year-to-year fluctuations, this indicator is calculated using 3-year moving averages. The 3-year average annual SBIR and STTR award dollars won by small businesses in a state are divided by the 3-year average annual gross domestic product (GDP) for the same period. All data are expressed in current dollars.

The amount of SBIR/STTR funding that states receive relative to the size of their economies varies greatly across states, with states in the highest quartile often measuring more than an order of magnitude greater than those in the lowest quartile. Total federal SBIR/STTR award funding has remained relatively flat since the late 2000s; as GDP has increased, the value of this indicator has decreased nationally and for most states.

Data sources: Small Business Administration, Office of Technology, Small Business Technology Transfer program and Small Business Innovation Research program statistics; U.S. Bureau of Economic Analysis, Gross Domestic Product data; Government of Puerto Rico, Office of the Governor, Gross Domestic Product data.

  • 1st Quartile

    $146.61$515.99
  • 2nd Quartile

    $71.84$126.86
  • 3rd Quartile

    $43.07$66.48
  • 4th Quartile

    $5.17$42.8
  • No data

Footnote

NOTES: The national SBIR and STTR funding total for the United States includes U.S. territories; The national GDP total for the United States includes Puerto Rico.

SOURCE: Small Business Administration, Office of Technology, Small Business Technology Transfer program and Small Business Innovation Research program statistics (various years), data as of October 2017; Bureau of Economic Analysis, Gross Domestic Product data (various years); Government of Puerto Rico, Office of the Governor, Gross Domestic Product data (various years), data as of May 2017.

Recommended Citation: National Science Board. 2018. “Average Annual Federal Small Business Innovation Research and Small Business Technology Transfer Funding per $1 Million of Gross Domestic Product.” Science and Engineering Indicators 2018, State Indicators. Alexandria, VA: National Science Foundation (NSB-2018-1). https://www.nsf.gov/statistics/state-indicators/indicator/ave-sbir-and-sttr-funding-per-1-million-state-gdp

Last updated: January 18, 2018