The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs, collectively known as “America’s Seed Fund,” are vital engines for innovation, job creation, and economic growth in the United States. Administered across 11 federal agencies, including the Department of Defense (DOD), the National Institutes of Health (NIH), and NASA, these programs represent one of the nation’s most effective mechanisms for fostering innovation.

This report examines the broad economic impact of the SBIR/STTR programs, with a particular focus on the National Cancer Institute (NCI) within NIH.

Revenue, Employment, and Tax Contributions

The SBIR/STTR programs have demonstrated their effectiveness in creating both direct and indirect economic benefits. The TechLink analysis reveals that the programs have generated $26.1 billion in nationwide economic output, including $9.1 billion in direct sales and $2.9 billion in federal, state, and local tax revenues from NCI-funded projects alone​.

Furthermore, investments from these programs have supported over 107,918 new jobs, with an average annual compensation of $91,716 in 2024 dollars, a figure notably higher than the national average.

The Center for Strategic and International Studies (CSIS) echoes these findings, underscoring the SBIR program’s critical role in generating economic benefits. Notably, CSIS highlights the SBIR program’s 22:1 ROI, a reflection of its ability to support high-growth, technology-driven firms that propel the U.S. economy forward and foster competitiveness on a global scale.

Commercialization and Additional Investment

One of the primary goals of the SBIR/STTR programs is to facilitate the commercialization of innovative products and services. The programs have achieved a commercialization rate of 40-70% across agencies, and in some instances, as much as 70% of projects reach the market, demonstrating the substantial impact of SBIR/STTR funding in bridging the gap from research to market​.

Additionally, these programs have proven successful in attracting further R&D investment from external sources. For instance, 35% of SBIR/STTR-funded projects received follow-on investment, totaling $6.8 billion, with some projects securing upwards of $10 million in venture or private funding. This external support signals that SBIR-funded projects often create high-value intellectual property with significant market potential, thus attracting further financial support to aid in their commercialization journey​.

NCI’s Role in Driving Life-Saving Innovations

The SBIR program is either the highest or is among the highest return on investment of any government program, in any country.

Within NIH, the National Cancer Institute (NCI) has played a pivotal role in leveraging SBIR funds to address cancer-related challenges. A study of NCI’s SBIR/STTR program, examining 690 projects funded between 1998 and 2010, found that approximately 65% of the projects led to the development of new treatment options for patients who previously had limited or no options. NCI’s SBIR-funded projects also produced advancements that reduced the invasiveness of treatments, minimized the need for follow-up medical visits, and lessened hospitalization times, ultimately leading to better patient outcomes and cost savings in healthcare​.

Further, over 89% of NCI award recipients indicated that the SBIR award provided capital at a critical moment, enabling their projects to overcome funding challenges that might have otherwise halted progress. The NCI’s support for these projects underscores the broader mission of America’s Seed Fund, which aims to support transformative research with real-world applications that save lives and improve healthcare.

Technological Advancements and Knowledge Creation

Beyond economic metrics, the SBIR/STTR programs contribute significantly to scientific and technological knowledge. Many SBIR/STTR-funded projects maintain strong links with universities, research institutions, and academic innovators. According to the National Academies’ surveys, over 60% of SBIR firms had at least one academic founder, establishing a vital connection between groundbreaking academic research and market-driven innovation. This connection enables the translation of university-based research into commercial products and technologies, amplifying the societal impact of these programs​.

The National Academies’ studies also show that SBIR/STTR awardees demonstrate a high rate of patenting activity, with up to 70% of projects in some agencies resulting in at least one patent. Patents are critical indicators of innovation, representing intellectual property that can provide competitive advantages and open doors to new markets for small businesses.

Why This Matters

The SBIR and STTR programs have far-reaching impacts on the U.S. economy, healthcare, technology, and society as a whole. By empowering small businesses and facilitating the commercialization of innovative technologies, America’s Seed Fund plays an indispensable role in advancing U.S. economic growth and global competitiveness. For organizations seeking to benefit from these opportunities, partnering with experts like Grant Engine can provide the strategic guidance needed to access funding, secure investments, and bring transformative innovations to market.

To learn more about how Grant Engine can support your innovation funding journey, contact us at (650) 937-9164, email greatscience@grantengine.com, or contact us through our website.