[Congressional Record Volume 157, Number 44 (Wednesday, March 30, 2011)]
[Senate]
[Pages S1966-S1967]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               SMALL BUSINESS INNOVATION RESEARCH PROGRAM

  Mrs. SHAHEEN. Mr. President, if I could begin in the spirit of 
morning business, I am here to talk about the importance of passing the 
reauthorization of the Small Business Innovation Research Program. I 
think it is important because our future economic prosperity depends on 
whether this country can continue to be a leader in science and 
innovation. We can't compete with India and China for those low-wage 
manufacturing jobs. That is not the future of America. Our future is to 
be the global leader in science and technology. America makes the best, 
most innovative products and services, and that ingenuity and 
excellence is our chief economic strength as a nation.
  As a former small business owner, I know it is business and not 
government that creates jobs, but I also know government has a critical 
role to play in fostering a positive business climate. I believe there 
are a few things we need to do to unleash the innovative spirit that is 
so alive and well throughout this country, and particularly in my home 
State of New Hampshire.
  To maintain the creative dominance that has allowed us to lead the 
world in innovation, we do need to enact a long-term reauthorization of 
the Small Business Innovation Research Program, or the SBIR Program.
  SBIR is not just a typical grant program. Under the SBIR Program a 
small business is able to compete for research that Federal agencies 
need to accomplish their missions--agencies such as the Department of 
Defense. Small businesses employ about one-third of America's 
scientists and engineers and produce more patents than large businesses 
and universities. Yet small business receives only about 4 percent of 
Federal research and development dollars. SBIR ensures that small 
business gets a tiny fraction of existing Federal research dollars.
  In the last few months, as we have been talking about the SBIR 
Program in the Small Business and Entrepreneurship Committee on which I 
serve, I have had the chance to visit a number of New Hampshire 
companies that are doing cutting-edge research and are growing their 
businesses because of the SBIR Program. This research has allowed them 
to develop new products and customers and to hire new workers. I wish 
to talk specifically about one of those companies because they have 
such a great story. It is a company called Airex, and it is in 
Somersworth, NH. Their story shows just how the SBIR Program encourages 
innovation and creates jobs.
  When I visited Airex, I had a chance to see some of the impressive 
technologies the company has developed. Airex specializes in 
electromagnetic motors and components. As they explained to me, their 
motors don't go round and round, they go back and forth. Its employees 
design and produce everything from motors used to make Apple's iPad, to 
gyroscopic coils that are used to stabilize the artillery system on 
Abrams tanks. So they produce a wide divergence of products.
  In the past decade Airex has more than doubled its revenues and its 
workforce largely because of the products it developed with the support 
of the SBIR Program. Jim Sedgewick, who is the President of Airex, told 
me SBIR was critically important for the development of the products 
that enabled the company to add several good-paying jobs in New 
Hampshire.

[[Page S1967]]

  For example, Airex was able to compete for and win a grant to do 
research for the Air Force on materials needed for strategic missile 
defense. In order to conduct the research Airex had to develop a new 
electromagnetic motor. Since the motor that Airex developed had 
tremendous commercial potential, Airex secured a patent. Now that motor 
is used in the production process for the Apple iPad and, as my 
colleagues can imagine, sales for that motor have increased 
dramatically in recent years as the iPad has become so popular.
  The same is true for several other products Airex developed with the 
help of SBIR. Airex products continue to be in high demand not just in 
America but across the world. Exports now account for 30 percent of 
Airex's revenues, so they are a great story on the export front too. 
Airex told me its biggest export products are the ones that were 
developed with the support of the SBIR Program.
  If we are going to out-compete and out-innovate the rest of the 
world, we need to encourage the kind of innovation that has made Airex 
so successful. SBIR was integral to making Airex's success a reality. 
That is why SBIR must continue to be an important part of our strategy 
for staying competitive in the 21st century.
  Airex is just one of many New Hampshire small businesses that have 
successfully competed for SBIR funding in the 28 years the program has 
been in existence. All across New Hampshire small businesses that 
otherwise wouldn't be able to compete for Federal R&D funding have won 
competitive grants to advance technology and science and create good 
jobs. In just the last 2 years New Hampshire firms have won 80 SBIR 
awards. In fact, despite its small size, although it is a little bigger 
than Delaware, as the Presiding Officer knows, New Hampshire is ranked 
22nd in the Nation for total grants awarded through the Department of 
Defense since SBIR began.
  So I know the Presiding Officer knows we need to focus on smart ways 
to create jobs and stay competitive. We all know small firms are where 
the jobs are created in the United States, and we know the future of 
the American economy rests with innovation. The SBIR Program must be 
one important part of our overall strategy to encourage the innovation 
that will keep the American economy strong through the 21st century.
  So I am pleased to be here to support SBIR, and I encourage all of 
our colleagues to join me in supporting this important program.
  Thank you very much, Mr. President. I note the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The legislative clerk proceeded to call the roll.
  Mr. COBURN. Mr. President, I ask unanimous consent that the order for 
the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. COBURN. Mr. President, I ask unanimous consent to speak for 20 
minutes as in morning business.
  The PRESIDING OFFICER. Without objection, it is so ordered.

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