Grants360°: SBIR/STTR
Key Takeaways
Bob Bollinger, Professor of Infectious Diseases in the School of Medicine, and Chris Heaney, Associate Professor in the Department of Environmental Health and Engineering, discuss their experiences securing funding from Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) grants and strategies to consider during your application process.
Overview:
Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs are U.S. federal funding mechanisms aimed at promoting the commercialization of innovative research.
These programs target the funding gap between basic research and commercial product development.
SBIR grants are geared toward small businesses developing technology independently or in collaboration while STTR grants specifically require collaboration between a small business and a non-profit research institution, such as a university.
Federal Set-Aside: around 3% of federal R&D budgets support these programs.
Non-dilutive funding: no equity or ownership is exchanged, unlike venture capital. This is highly attractive to early-stage companies and investors.
Phase-Based Structure:
Phase I: Feasibility (~ $300K, 6 months to 2 years)
Phase II: Development (~ $1M+, 2 years)
Fast Track: Combined Phases I & II
Success Rates: Approx. 16% for Phase I, 26% for Phase II, and 18% for Fast Track.
The small business writes the application, and if an academic institution is involved (as in STTRs or collaborative SBIRs), it acts as a subcontractor.
Applications must include both a technical research strategy and a commercialization plan.
Grants undergo peer review, including reviewers with technical and commercial expertise.
SBIR/STTRs are easier to write than NIH R01s but require understanding commercialization and IP.
Academics often help by contributing scientific content to the research section, while the business handles the commercial aspects.
Collaborating with experienced business partners or through tech transfer offices like JHTV is key.
Need clear communication and early agreement on ownership and disclosures.
Navigating COI policies is crucial, especially if faculty are inventors or company stakeholders.
Some researchers opt for public-good models (like Yale’s SalivaDirect), while others pursue full commercialization.
Application & Review Process:
Start by finding an appropriate federal agency that offers SBIR/STTR grants aligned with your technology area (e.g., NIH, NSF, DOE, CDC, FDA).
The SEED NIH SBIR website and similar portals offer comprehensive resources
Each agency has different success rates and program focuses, so its important to look at institute-specific success data.
The small business (not the university or faculty) is the applicant for the grant.
For STTRs, the company must collaborate with a nonprofit research institution.
For SBIRs, an academic partner is optional but commonly included for technical strength.
The proposal has two main sections:
Research Strategy: Developed by the academic or scientific tram.
Includes: Project aims, Technical approach, Preliminary data (proof of concept), and Technology readiness level (TRL)
Commercialization Plan: Written by the small business or its business development team.
Must explain: Market need, Business model, Product development and regulatory strategy, and Path to commercialization and scalability.
The academic partner (e.g., Johns Hopkins) typically becomes a subcontractor.
The small business outlines the scope of work to be performed by the university in the application.
Licensing and IP agreements are coordinated with the university’s technology transfer office (e.g., JHTV).
Grants are submitted through Grants.gov or NIH’s eRA Commons, depending on the agency.
Applications are reviewed by peer review panels composed of both scientists and commercialization experts.
Review criteria include: Scientific merit, Innovation, Commercial potential, Team qualifications, and Feasibility
If awarded, the academic partner executes the research per subcontract terms.
Companies often leverage SBIR/STTR awards to attract additional venture funding (non-dilutive funding is attractive to investors).
Strong award performance increases chances for follow-on funding.
Award Impact:
These awards provide essential capital to refine, validate, and scale technologies that are not yet market-ready.
Ex: Scene Health (formally Emocha) used SBIR funding to support clinical validation studies and move its technology closer to implementation.
SBIR/STTR funding is non-dilutive (no equity taken), making it very attractive to startups and investors and can leverage additional venture capital or private investments by showing external validation.
Obtaining these grants helps academic researchers transition ideas into real-world solutions with societal impact and provides a new funding stream that’s sometimes easier to obtain than traditional NIH R01 grants.
These awards encourage cross-sector partnerships between academic and industry and fosters new networks, ideas, and collaborations, which can lead to follow-up grants, tech transfer, or startup launches.
Resource Links
SEED - Helping Innovators turn discovery into health
SBIR/STTR Success Rates | SBIRLand
Recording
We are always working to provide our faculty with current precise content. If you have brief suggestions to help us improve this page please comment below. For more extensive modifications please connect with us at BSPH.research@jhu.edu.