Congress created the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs to strengthen the role of small, innovative companies in federally supported research and development (R&D). These highly competitive awards-based programs support scientific excellence and technological innovation across 11 federal agencies.
Federal agencies with extramural research budgets greater than $100 million are required to set aside a certain percentage of their budget to SBIR; those with research budgets greater than $1 billion are also required to set aside a certain portion for STTR.
The current set-aside is 3.2% for SBIR and 0.45% for STTR.