Thursday, August 25, 2011

Seeing Red, In More Ways Than One

As the co-owner of a small high-tech business, Emergent Sensor Technologies (EST), I have a vested interest in the federal Small Business Innovation Research (SBIR) program, and to a lesser degree, the Small Business Technology Transfer Research (STTR) program. These programs were originally designed to give small businesses kick-start funding to pursue highly advanced and innovative research projects that might be too risky to undertake otherwise. The end goal of the program? To create jobs. And this makes a lot of sense considering national job growth is fueled almost solely by small businesses. In fact, when EST is awarded its first SBIR, we plan to hire new employees nearly immediately, with additional employees to be added within 1.5-2 years after the date of the award.

Unfortunately, the SBIR program, like many other federal science-related programs, is on the chopping block. According to Rick Shindell of SBIR Insider,
The news on SBIR reauthorization is not good. In fact, at this time, the odds for obtaining reauthorization by the September 30, 2011 deadline is grim, and congress seems to have no taste for what would be the 13th continuing resolution (CR or extender) of the program. In short, the SBIR/STTR programs are likely to lapse, at least for a time, but perhaps permanently.
I don't think I should have to state explicitly that this is an utter travesty, but I'm going to anyways: This is an utter travesty.

It's become clear that in Washington, D.C., job growth and economic development has taken a back seat to deficit reduction. This, despite high unemployment and a depressed economy for the foreseeable future. It's a shame that balancing our federal budget, a matter which has very little effect on the majority of Americans, is being touted as some sort of pressing problem, all at the expense of our country's future. It shows a real lack of foresight and vision. And it's paving the way for us to be overcome as the world's most powerful nation, leaving us whimpering and grabbing at China's coattails.
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2 comments:

  1. AnonymousAugust 25, 2011 at 8:46 AM

    nice post, good to hear from someone I know that uses programs like this. So is this a type of small business loans or a type of research grant?
    And how will this effect you if/when this goes away. I believe that with out change in our manufacturing base we WILL be "whimpering and grabbing at China's coattails." timothy

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  2. CodyAugust 25, 2011 at 11:50 AM

    Tim,

    The SBIR/STTR program provides research grants, not loans. These grants are awarded to small businesses that would likely be unable to get a loan due to the high risk (but high potential value) of the proposed project.

    If this program lapses permanently, our company will likely have to turn to outside investment for the funds necessary to pursue our most innovative research projects. This often results in research that is not as lofty or cutting-edge, as investors commonly have different goals than researchers. It also dilutes the equity of the company and can make it difficult for the small business to seek other sources of funding - just as an example, a VC-backed company is ineligible for SBIR funds.

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