Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Implementation Procedure

This Drexel University SBIR/STTR Implementation Procedure is to be applied in concert with the University’s other policies and procedures, including but not limited to Financial Conflicts of Interest in Research Policy, Institutional Conflicts of Interest in Research Policy, and other policies related to sponsored research.

Program Overview

The federally funded SBIR and STTR programs stimulate innovations that encourage domestic small business concerns (SBC) to engage in research and development that has the potential for commercialization. SBIRs and STTRs are awarded directly to an SBC, which may issue a subcontract to Drexel.

Currently, eleven separate agencies participate in the SBIR program, and five in the STTR program, and the standards can differ from program to program. Generally, the key differences between the two programs are as follows:

ISSUE	SBIR	STTR
LEAD PI	Lead PI must be primarily employed by the SBC (e.g. 51% of full-time effort) at the time of award and for the duration of the award This means Drexel faculty are not eligible to be lead PI on a SBIR	Primary employment of lead PI is not stipulated (can be a Drexel employee) Drexel faculty or employee must have at least 10% effort on the award, which must be limited to either Drexel or the SBC (NOT BOTH)
TERM	Phase I: up to 6 months Phase II: up to 2 years	Phase I: up to 1 year Phase II: up to 2 years
IS COLLABORATION REQUIRED?	Allowed, but not required	Requires collaboration with a non-profit research institution
LIMITS ON SUBCONTRACTING DISTRIBUTION	Phase I - a maximum of 33% of the work may be subcontracted to third party Phase II, a maximum of 50% of the work may be subcontracted to a third party	Phase I and Phase II— a minimum of 30% of the work (maximum of 60%) must be subcontracted to a non-profit research institution (i.e., must be a formal collaboration)

*A Drexel faculty member may participate on one side of the project or the other but cannot participate on both the company and the Drexel side (even if the effort is unpaid on one side). Please contact ORI if you have any questions about this requirement.

COI Disclosures

Personal COI: If anyone on the proposal for Drexel (faculty, student, fellow, staff, contractor, consultant, etc.) has a financial interest in the SBC (e.g., equity, options, compensation, rights to IP that the SBC acquired, etc.), the Drexel PI and/or the potentially conflicted individual(s) must consult with the Drexel Office of Research and Innovation COI to determine if any perceived, potential, or actual COI exists

Institutional COI: The Drexel PI and/or the potentially conflicted individual(s) also must consult ORI-COI if Drexel has its own financial interest in the SBC (e.g., equity, options, rights to royalties or other payments through a license)

Contacts

Drexel Applied Innovation -applied_innovation@drexel.edu
ORI-COI – FCOI@Drexel.edu
Institutional COI - compliance@drexel.edu