A report into the economic impact of the NCI SBIR program shows just how much the program has contributed to both the United States economy, and to positive effects for patients and within society (full report). The study evaluated 690 projects that received Phase II SBIR or STTR funding between the fiscal years of 1998 and 2010, leaving out technologies funded after that due to the long commercialization period for biomedical technology.
The economic benefits of the SBIR and STTR programs are positive given that the investment was approximately $787 million. Of 690 awards, 368 resulted in sales thus far, at a cumulative $9.1 billion or approximately $24.8 million per award that resulted in sales.
The analysis found that the investment yielded $26.1 billion in total economic output nationwide. There was $9.1 billion in total sales to date of products and services resulting from the awards, and $2.9 billion in new tax revenues federal, state, and local levels. The programs brought in $8.1 billion in labor income with 107,918 new jobs created, with an average compensation of $75,385.
One of the purposes of the SBIR and STTR programs is to support the US economy and US-oriented businesses, and this data shows how both are being accomplished. The economy, over-all, is being positively impacted, and individual companies are able to support more people with more jobs. In fact, NCI says sales figures may actually be understated as some companies did not respond, not all licensee sales information was available, and inflation contributed to undervaluation of earlier sales.
The report also looks at how funding has impacted technology development, as NCI is focused on advancing cancer research and utilizing technology to affect the lives of cancer patients. Of the projects studied, 65 percent of the awards funded development of new treatments for patients who did not otherwise have options. Other projects reduced invasiveness of a treatment or procedure, reduced follow up medical visits, or reduced the number of hospitalizations or the amount of hospital time recommended for a treatment or procedure.
Of respondents, over 89 percent indicated the award provided access to capital at a pivotal or critical moment, showing just how impactful this funding can be for companies engaged in life-changing research and development.
Grant Engine can help your organization access impactful funding too. Contact us for more in-formation.