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related research by small companies from Fiscal Year (FY) 1983 to FY 1997 based on an examination of biotech keywords contained in the project abstracts. This was allocated as $194 million in Phase II awards and $47 million in Phase I awards. This amount represents about 4 percent of DoD’s annual SBIR budget.

In addition, through a series of structured case studies, this paper demonstrates the role that the DoD SBIR program has played in entrepreneurship and technological innovation in biotechnology through a structured series of case studies. Many of the DoD projects have obvious dual use in the civilian sector and DoD-SBIR recipient companies have used the awards to advance their scientific and commercial objectives. All of the DoD SBIR-funded companies that we interviewed have developed commercial products. Two companies that were interviewed, MedImmune and Martek, had a strong DoD legacy and the SBIR awards helped the companies to convert to commercial, civilian applications. The case studies further demonstrate that DoD and NIH funding are complementary for small start-up biotech companies. It appears that DoD has an interest in funding different applications than NIH, but it is common for firms that received DoD funding to subsequently apply to NIH.

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