[Congressional Record Volume 145, Number 131 (Friday, October 1, 1999)]
[Extensions of Remarks]
[Pages E2009-E2010]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 SMALL BUSINESS INNOVATION RESEARCH PROGRAM REAUTHORIZATION ACT OF 1999

                                 ______
                                 

                               speech of

                        HON. MICHAEL E. CAPUANO

                            of massachusetts

                    in the house of representatives

                       Monday, September 27, 1999

  Mr. CAPUANO. Mr. Speaker, I rise in support of H.R. 2396, the Small 
Business Innovation Research Program Reauthorization Act of 1999. This 
important program has had a significant impact not just in 
Massachusetts, but many other states around the country.
  Literally thousands of companies have benefited from the SBIR program 
since its establishment in 1982. With the exception of some Internet 
and biotechnology companies, small technology businesses generally do 
not have the financial resources necessary to develop their most 
innovative ideas. Many businesses, in their early years and without 
much of a track record, have a difficult time finding the capital 
necessary to bring ideas to the marketplace, regardless of how good 
these ideas might be. The SBIR program provides these businesses with 
an opportunity to develop and implement their ideas with the goal of 
enabling these businesses to fully realize their commercial potential. 
When these companies succeed, they in turn strengthen the economy by 
providing the type of high quality jobs our country needs to prosper.
  While the SBIR program has been a tremendous help to the small 
business technology community, more can be done to improve upon the 
success of the program. Through H.R. 2396, we are promoting a number of 
program changes that will increase the chances of success for small 
businesses operating in the technological fields.
  In order for SBIR recipients to achieve success, it is important that 
participating agencies

[[Page E2010]]

allocate a sufficient portion of its administrative expense budgets to 
the SBIR program. By reserving these funds, agencies could (1) conduct 
site visits to companies which have won Phase I or Phase II awards; (2) 
provide the opportunity for agencies to review a company's work; and 
(3) provide those firms with such assistance in meeting the 
requirements of the program as they may require. Such expenses require 
agency investment in SBIR beyond set aside funds. However, this 
investment is a necessary agency administrative expenditure if agencies 
and participating companies are to get maximum value out of the 
program. A great example of this type of investment already exists at 
the Department of Defense.
  Another change this legislation will make to the SBIR program is the 
addition of a National Research Council study. The Science Committee 
asked the NRC to examine a variety of questions which I and other 
Committee members feel will lead to a better understanding of the 
program's potential and encourage other beneficial program changes in 
the future. It is important that this study is done objectively, with a 
true understanding of the problems facing SBIR winners. We expect that 
the NRC panel that oversees this project will embody a wide range of 
expertise and experience, and include a respectable number of small 
high technology businessmen who have participated in the program.
  In closing I would like to reiterate the importance of this program 
and the need to pass this bill this session. In the Boston area, we 
have a number of great research universities and laboratories; each 
filled with bright, technically oriented people who are willing to take 
a chance on an idea that possesses great potential. It is in our best 
interest to do what we can to encourage these individuals to pursue 
their ideas to the fullest. With this in mind, I urge each of my 
colleagues to give this bill their strongest support.

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