[Congressional Record Volume 157, Number 11 (Wednesday, January 26, 2011)]
[Extensions of Remarks]
[Pages E133-E134]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




INTRODUCTION OF THE SBIR ENHANCEMENT ACT, THE SBTT ENHANCEMENT ACT, AND 
                   THE SMALL BUSINESS INNOVATION ACT

                                 ______
                                 

                          HON. MAZIE K. HIRONO

                               of hawaii

                    in the house of representatives

                      Wednesday, January 26, 2011

  Ms. HIRONO. Mr. Speaker, I rise today to introduce three bills that 
will strengthen the existing Small Business Innovation Research Program 
and the Small Business Technology Program by increasing the percentage 
of federal funding that goes to these important programs and increasing 
the size of the grants, which have significantly declined in real value 
since they were last authorized. The bills are H.R. 448, the Small 
Business Innovation Enhancement Act; H.R. 447, the SBIR Enhancement 
Act; and H.R. 449, the SBTT Enhancement Act.
  Small companies, like Cellular Bioengineering, Oceanit, and 
Archinoetics in Hawaii are a source of great innovative talent. 
However, too many great ideas never come to fruition because small 
entrepreneurial firms lack the resources they need to test an idea and 
bring it to fruition. The Small Business Innovation Research, SBIR, 
Program and the Small Business Technology Transfer, SBTT, Program have 
proven track records.
  The SBIR Program, for instance, has awarded some $16 billion in 
awards since 1983. Some 1.45 million people are employed in SBIR firms 
and these firms have 450,000 employees with graduate degrees in 
engineering and science--more than all U.S. academic institutions 
combined.
  However, the number of new firms entering into the SBIR program has 
declined drastically in recent years. Part of the reason is the 
difficulty in applying for grants and the fact that the grant maximum 
amount for Phase I of the program was limited to $100,000. My bill 
doubles that amount to $200,000. Phase I funding is used to explore the 
scientific, technical, and commercial feasibility of an idea or 
technology.
  Phase II funding, previously limited to a maximum of $750,000, is 
increased to $1.5 million in my bill. Phase II awards are given to 
companies that successfully complete phase I and can be used for R&D 
work as the developer moves to commercializing their invention.
  The Small Business Technology Transfer Program or SBTT is very 
similar to SBIR, but the grants are specifically designed to fund 
public/private collaborations between nonprofit research institutions 
and small businesses that want to develop commercial applications for 
technologies developed by those institutions. The SBTT program uses the 
same Phase I and Phase II funding formula as SBIR. Eligible nonprofit 
research institutions include U.S.-based nonprofit colleges or 
universities, domestic nonprofit research organizations, and federally 
funded R&D centers. The University of Hawaii would be an eligible 
institution for SBTT grants.

[[Page E134]]

  Last year, when the House prohibited Members of Congress from seeking 
earmarks for private companies, I worried about the effect this would 
have on small high technology companies in Hawaii and throughout the 
country. I've been so impressed by the innovative scientists and 
engineers I've met and have proudly sought earmarks in the past to 
further their work. In the absence of earmarks, I believe that 
strengthening the SBIR and SBTT programs is our best chance to provide 
the opportunities these creative entrepreneurs need to create new 
businesses and products that will provide good jobs, strengthen our 
economy, and improve our quality of life.
  In his State of the Union address last night, President Obama 
highlighted the importance of encouraging private sector innovation to 
spur economic growth and exports. Passing my bills to strengthen SBIR 
and SBTT would be a good first step.

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