Small Business R&D Spending: Payoff Uncertain The Defense Department has spent more than half a billion dollars on space-related technology development through the Small Business Innovation Research Program, but does not know how many of the new technologies turned into commercial products, according to the Government Accountability Office. Small businesses participating in the SBIR program said they face many hurdles in breaking down the door to DOD’s space acquisition programs. “DOD does not have a complete picture of contract awards and does not know how effectively it is commercializing SBIR technologies by transitioning them into a DOD acquisition program or a commercial-sector product or service,” the GAO auditors said. DOD awards competitive grants totaling up to $2.15 million in two phases for companies to research and develop prototype products. It awarded more than 1,600 grants from 2005-2009 worth $551 million. The payoff from those investments is largely unknown. Small business executives told the investigators that DOD’s space program managers depend on a few prime contractors, and neither the department nor the primes welcome new entrants. DOD and industry officials described a “risk averse” culture in space contracting that discourages trying something new. Executives of some prime contractors said they prefer to buy a small company rather than license its technology. GAO recommended that the Defense Department improve its management of the SBIR program so it can better track the results. DOD officials said they are working on improvements. The report is GAO 11-21, available at www.gao.gov.