STTR Grants USA

STTR - the Small Business Technology Transfer programme - is SBIR's sibling: same agencies, same Phase structure, similar award sizes, but with a fundamental difference. STTR requires a formal research partnership between the small business and a university or federally funded research and development centre (FFRDC). For small businesses that have identified academic researchers whose work directly complements their technology, STTR is often the better path. For those without an academic connection, SBIR is typically more accessible.

How STTR differs from SBIR

Three key differences. First, STTR requires a university or FFRDC partner - a formal written agreement specifying IP rights and each party's role. SBIR allows subcontractors but doesn't require academic collaboration. Second, STTR allows the principal investigator (PI) to be employed by the research institution rather than the small business - which makes it more accessible for university spinouts where the academic inventor wants to remain at the university while commercialising through a startup. Third, performance allocation: in STTR, the small business must perform at least 40% of the work (vs. two-thirds for SBIR Phase I), and the research institution must perform at least 30%.

Which agencies run STTR?

Five agencies are required to run STTR programmes: NIH, NSF, DOD, DOE, and NASA. These are the same agencies with the largest SBIR programmes. DOD, NIH, and NSF are the largest STTR funders. Each agency's STTR topics align with its research mission - NIH STTR covers biomedical and health technology; NSF STTR covers deep tech and emerging science; DOD covers defence-relevant technology. The award sizes, review process, and timeline broadly mirror the SBIR programme at each agency.

Finding the right university partner

A genuine research partnership - where the university researcher's work substantively advances your technology - is far stronger than a paper arrangement. The best STTR partnerships start with identifying academic researchers whose published work directly addresses a problem your company is solving. University technology transfer offices (TTOs) are a starting point - they manage IP licensing and can facilitate introductions to faculty. NSF's I-Corps programme, which many universities run, creates another connection point between founders and academic researchers. Building a real working relationship before submitting is both better for the project and better for the proposal.

IP and ownership considerations

STTR IP ownership is more complex than SBIR because there are two parties with potential claims - the small business and the university. The written agreement governing the STTR relationship must address IP ownership, licensing, and commercialisation rights upfront. Universities are experienced at this and have standard agreement templates, but small businesses should review these carefully - ensuring that the commercial rights needed to build a business are preserved. Many universities are flexible on IP terms for early-stage companies; negotiation is appropriate and expected.