The Small Business Innovation Research (SBIR) program was originally established in 1982 by the Small Business Innovation Development Act (P.L. 97-219), codified at 15 U.S.C. § 638. It was then expanded and extended by the Small Business Research and Development Enhancement Act of 1992 (P.L. 102-564), and received subsequent reauthorization and extensions, the most recent of which extends the SBIR program through 2022. (P.L. 114-328).
Each Federal agency with an extramural budget for research/research and Development (R/R&D) in excess of $100,000,000 must participate in the SBIR program and spend (obligate) a minimum percentage of their extramural R/R&D budgets (obligations) of not less than 3.2% of such budget in fiscal year 2017 and for the percentage required by statute for each fiscal year after for awards to small business concerns (SBCs) for R/R&D under the SBIR program.
The objectives of the SBIR program are to:
- Stimulate technological innovation in the private sector
- Strengthen the role of small business in meeting Federal R&D needs
- Foster and encourage participation by businesses owned by socially and economically disadvantaged persons and women-owned SBCs in technological innovation and
- Increase private sector commercialization of innovations derived from federal R&D funding.