The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs are designed to move early-stage and impactful technologies closer to commercialization, but what does “commercialization” mean?

Technical topic areas identified by federal agencies are based upon specific mission needs. The SBIR/STTR Topic Releases are an opportunity for small businesses to conduct research and development activities and to expand that innovative research into products. Both Phase 1 and Phase 2 proposals require a commercialization plan to ensure that the research project begins with the end in mind.

What is Commercialization?

Commercialization is a process to advance the impact of research and development through demonstration and deployment, ultimately bringing products or services to market. This path requires an initial tech-to-market mindset in the early stages of technology development and provides perspective into the target application and end users.

SBIR/STTR proposals require a commercialization plan to ensure that the researcher/inventor is working toward an achievable and relevant goal. The commercialization sections of each agency’s application for funding may vary by name (e.g., commercialization plan, commercialization strategy), and requirements based on the phase.

Commercialization Potential

The specific approaches, objectives and aims for demonstrating the innovation must clearly meet the agency’s needs and demonstrate a clear understanding of the problem as well as the current state of the art.

Below are examples of the commercialization outcomes to be defined in your proposal:

Have you clearly defined the market potential and commercial impact of a proposed product?
Have you outlined proposed and existing commercial partners and included letters of support and/or commitment?
Have you defined your Total Addressable Market (TAM), identified key competition & outlined your business model?

Key Points

Ultimately, the SBIR/STTR programs aim to transform novel innovations into products and services with high commercial impact and potential. Proposals are assessed on the ability of the small business to generate commercial outcomes based on the proposed activities that bring the innovation closer to market-ready.