Small technology companies on Long Island remain competitive in attracting federal funding under the SBIR/STTR programs, which directly supports the private sector in the development and commercialization of innovative and early-stage technologies with significant potential for financial, economic and societal impact.
Why is this important?
The Small Business Research and Innovation (SBIR) the Small Business Technology Transfer (STTR) programs provide funding to small technology companies of less than 500 employees to accelerate the development and commercialization of scientific discoveries and innovative ideas into commercial products and services. SBIR/STTR awards are a compelling source of non-dilutive funding to private companies that allows emerging firms to demonstrate proof-of-concept of their technology and mitigate risk of technical development without affecting shareholder ownership and equity. Offered competitively across federal agencies in various forms, there are typically two phases of SBIR/STTR awards. Depending on the federal agency, a Phase I SBIR/STTR award can provide approximately $100,000 over 6-12 months, with Phase II providing approximately $750,000 over 2 years, contingent on successful completion of the Phase I aims along with a review of the scientific and commercial merit of the application. The STTR program allows for significant subcontracting to non-profit research institutions in an effort to encourage industry-academic collaborations. SBIR/STTR funding to a state or region provides a snapshot of innovative technology development and early-stage commercialization activities of entrepreneurial firms, and may be a leading indicator of impending technology-based economic impact.
How are we doing?
Small technology companies on Long Island continue to be competitive in attracting SBIR/STTR funding across federal agencies and industry sectors. In 2012, Long Island technology companies attracted over $18M in SBIR/STTR funding, up almost 30% from 2011. By comparison, New York State attracted $103.7M in SBIR/STTR funding in 2012, up 47% from $70.4M in 2011. Long Island received 35 Phase I and Phase II awards in 2012, up from only 19 awards in 2011. SBIR/STTR funding to Long Island companies represented approximately 18% of the funding secured by small technology companies across New York State. The average SBIR/STTR award to companies on Long Island in 2012 was over $519,000, significantly higher that the New York State average of $394,000. In 2012, Long Island companies received 0.86% of SBIR/STTR funding nationwide, up from 0.62% in 2011.