[Congressional Record Volume 154, Number 71 (Thursday, May 1, 2008)]
[Extensions of Remarks]
[Pages E794-E795]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                     SBIR/STTR REAUTHORIZATION ACT

                                 ______
                                 

                               speech of

                          HON. HENRY A. WAXMAN

                             of california

                    in the house of representatives

                       Wednesday, April 23, 2008

       The House in Committee of the Whole House on the State of 
     the Union had under consideration the bill (H.R. 5819) to 
     amend the Small Business Act to improve the Small Business 
     Innovation Research (SBIR) program and the Small Business 
     Technology Transfer (STTR) program, and for other purposes:

  Mr. WAXMAN. Madam Chairman. It is with some reservation that I rise 
in favor of H.R. 5819, a bill to reauthorize the SBIR and STTR program.
  I strongly support these programs which give seed money to help small 
businesses advance innovative research ideas. They are engines of job 
growth and entrepreneurship that have produced dynamic inventions with 
a

[[Page E795]]

broad array of commercial applications. I am pleased that this measure 
adds energy, climate change, and rare diseases as eligible topics for 
projects funded through SBIR awards. These additions demonstrate the 
broad horizon of challenges that dynamic small businesses around the 
country can help tackle.
  I do have concerns, however, about a change made by this bill to 
allow small businesses that are majority-owned by venture capital 
investors to participate in the program. While I recognize the value in 
expanding the number and quality of applicants to the SBIR and STTR 
grant programs, I would not want to see these changes have the 
unintended result of skewing the grant programs toward companies with 
venture capital support.
  There are many companies that do valuable R&D work, but have not been 
attractive to or interested in venture capitalist investment. In fact, 
it is often these companies that are a particularly good fit for the 
SBIR and STTR programs, which provide grants in the early conceptual 
stages to help small businesses get their products off the ground. 
Although the increased funding authorized for the programs will 
hopefully see more projects funded overall, it would be troubling to 
see favoritism for projects because they have a venture capital ``stamp 
of approval''.
  It is important that this bill only authorizes the program for 2 
years so that Congress will be able to closely examine how these 
changes are implemented. If necessary, we will have the opportunity to 
make further adjustments to prevent deserving applicants without 
venture capital funding from being marginalized in the SBIR and STTR 
application process.

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