Small Business Technology Transfer (STTR)

Definition

The Small Business Technology Transfer (STTR) program is an SBA-coordinated R&D program similar to SBIR, but requiring the small business to partner with a qualifying research institution (university, federal lab, or nonprofit research organization). The small business must conduct at least 40% of the work and the research institution at least 30%. Like SBIR, STTR runs in three phases with similar funding levels and a Phase III sole-source path. Five federal agencies participate: DoW, DoE, HHS, NASA, and NSF.

Why It Matters

STTR is the primary path for university technology commercialization. For small businesses with strong academic ties, it opens a lane of federal R&D funding that SBIR-only competitors can't access. For universities, STTR is a route to translate research into commercial applications. Effective STTR teams have clear IP agreements between the small business and the research institution, which often becomes a critical issue as commercialization progresses.

Example

A small biotech partners with a major research university on an STTR Phase II $1.5M award. The university conducts computational modeling; the company handles lab validation and regulatory navigation. Two years later, the company wins an STTR Phase III $8M contract from DoW, with the university's IP licensed in exclusively.

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