Senators Propose More Money For Small Business R&D Two Democratic senators have proposed doubling the funding for the Small Business Innovation Research Program. The program, which is designed to move research and development projects into the commercial marketplace, spent $1.85 billion in fiscal 2005. Sens. Evan Bayh, D-IN, and John Kerry, D-MA, want agencies to spend 5% of their R&D dollars through the program, up from 2.5% under current law. In the first comprehensive study of the SBIR program, the National Research Council of the National Academies found the results have been “significant, even impressive.” The report said nearly half of SBIR-funded R&D projects have reached the commercial market. “A small percentage of projects will likely achieve large growth and significant sales revenues – i.e., become commercial ‘home runs,’” the report said. “Meanwhile many small successes together will continue to meet agency research needs and comprise a potentially important contribution to the nation’s innovative capability.” But the researchers added that most major commercial successes needed funding from other sources beyond their SBIR grants. “SBIR awards will have been in many cases a major, even decisive, input – but only one of the many contributions needed for success.” The report recommended increasing the standard size of Phase I grants to $150,000, from the current $100,000, and raising Phase II awards to $1 million, from the current $500,000-$800,000. Over the past 14 years nearly 15,000 companies have received at least one Phase II grant, the report said. A survey of the recipients found that more than two-thirds of SBIR projects would not have happened without federal funding. Eleven agencies participate in the program, with the Defense Department accounting for more than half the spending. The report is available at www.nap.edu/catalog/11989.html.