[Congressional Record (Bound Edition), Volume 145 (1999), Part 16]
[Extensions of Remarks]
[Page 23649]
[From the U.S. 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 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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