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The process of introducing a new product into the market is filled with risks and frustration. Many a concept fizzles prematurely at the marketing alter. This is where you, the large business, with your wealth of experience, can step up and make a difference. Pioneering a revolutionary new solution gives you the market leadership advantage. Under your tutelage, the fledgling small business will flourish, and you become the proud mentor.
As a large business with expertise in manufacturing and marketing, you are well suited to help high-tech small businesses transition their R&D efforts into commercially viable solutions. The small business, the large business, the Federal Agency, and the economy all come out as winners.
To speed up the process of commercialization, agencies are providing avenues for large businesses to contribute funds early on. While each of the participating Federal Agencies has specific guidelines for large business participation, in general they offer a Fast-Track - where participating large businesses match funds and combine Phase I & II.
Department of Defense (DoD)
Since 2000, DoD branches have developed their own Phase II enhancement policy to further encourage the transition of SBIR research into DoD acquisition programs as well as the private sector. The DoD has two opportunities available for SBIR and STTR projects that attract matching cash from an outside investor - Fast-Track and Phase II Enhancement. Both opportunities encourage rapid transition of SBIR/STTR R&D into commercialization.
Department of Homeland Security (DHS)
The DHS S&T SBIR Program has a cost match feature for Phase II SBIR projects. The purpose is to focus SBIR funding on those projects that are most likely to be developed into viable new products that DHS and others will buy, thereby making a major contribution to homeland security and/or economic capabilities.
The cost match can occur at the time of award or during the Phase II period of performance. Outside investors may include such entities as another company, a venture capital firm, an individual investor, an individual "angel" investor, a non-SBIR government program, or any combination thereof.