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The Small Business Innovation Research (SBIR) program is a highly competitive program that encourages domestic small businesses to engage in Federal Research/Research and Development (R/R&D) that has the potential for commercialization. Through a competitive awards-based program, SBIR enables small businesses to explore their technological potential and provides the incentive to profit from its commercialization. By including qualified small businesses in the nation's R&D arena, high-tech innovation is stimulated and the United States gains entrepreneurial spirit as it meets its specific research and development needs.

The mission of the SBIR program is to support scientific excellence and technological innovation through the investment of Federal research funds in critical American priorities to build a strong national economy.

The program’s goals are four-fold:

• Stimulate technological innovation.
• Meet Federal research and development needs.
• Foster and encourage participation in innovation and entrepreneurship by women and socially or economically disadvantaged persons.
• Increase private-sector commercialization of innovations derived from Federal research and development funding.

Also see Small Business Technology Transfer (STTR)

Source: https://innovation.ucsd.edu/build-your-company/funding/sbir/