Michael Borrus, of X/Seed Capital Management, who is a member of the committee studying the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs, moderated a roundtable discussion of key issues and proposed steps. At the roundtable’s close, prior to the final remarks by Dr. Gansler, Mr. Borrus reflected on the day’s proceedings, noting the variety of suggestions and examples heard throughout the day and suggesting that it is unclear what mix of these can be effective in addressing the problem of increasing participation among minorities and women. He argued that these must be tested while being mindful of whether they can be scaled. Overall, he noted that “The only thing that works is comprehensive attention to the problem itself at all points and a commitment to do that,” adding that we must “remove roadblocks, align incentives, measure the results; rinse and repeat; and do it ‘til you get it right.” This viewpoint complemented remarks by agency representatives who participated in the brief roundtable discussion. The content of the discussion and issues and recommendations raised by speakers is summarized below.
Matthew Portnoy, SBIR/STTR program coordinator at the National Institutes of Health (NIH), said that the NIH has a diversity of supplement programs to support underrepresented groups on SBIR and STTR awards. The NIH is taking steps to improve diversity among SBIR awardees. The NIH is targeting outreach to woman-owned and socially and economically disadvantaged businesses. The NIH is also coordinating its SBIR/STTR programs with the NIH Institutional Development Award (IDeA) program to target underrepresented states. The NIH’s annual IDeA Symposium includes sessions on the SBIR/STTR programs, and the NIH Annual SBIR/STTR Program includes a session on the IDeA program.
Christopher Rinaldi, the current chief commercialization officer and former SBIR program administrator at the Department of Defense (DoD),1 said that woman-owned small businesses comprise about 10 percent to 14 percent of DoD awardees, depending on the year. Federal agencies should continue to formulate operational plans to harness the potential of America’s growing minority populations, weighing pros and cons of various measures.
Mr. Rinaldi went on to say that the National Science Foundation’s (NSF) mission and programs to increase the numbers of people from underrepresented groups in the science and engineering pipeline provides a model for all federal agencies. The DoD currently awards scholarships, and the NSF program giving Phase II awardees with funds to hire students and faculty from underrepresented groups offers another idea for how to expand the pipeline. “This program is a lot less about the technology than about the people,” said Mr. Rinaldi. “People just need to know how to apply; they need encouragement and mentors. It’s all about people, connections, and linking it all up.”
Joseph Hennessey, senior advisor for Small Business Innovation Research at the NSF, noted that NSF’s funding is in the form of grants, giving the agency more flexibility than contracting agencies to provide supplemental programs for Phase II SBIR companies to hire female and minority students, faculty, and others.
Dr. Hennessey noted that the NSF launched the I-CorpsTM program to help universities translate their research findings into innovations, linking basic researchers to mentors. The program is beginning to receive SBIR applications from graduates of that program. The NSF could consider integrating elements of the ewits® program into this program through webinars. The NSF uses webinars after each solicitation to explain to potential applicants what the agency wants and how to submit a competitive application. Dr. Hennessey said that webinars probably increased the number of quality applications received by 25 to 30 percent, although it is unclear how many of those came from members of underrepresented groups.
Still, he said, the dearth of underrepresented groups in innovation is reflected in the number of applications received by the NSF, not in the success rates. “The challenge for us now is to get them to get engaged in the innovation process and become entrepreneurs.”
Dr. Hennessey indicated that the NSF’s nine program topic areas are managed by program directors with extensive technical and business experience who provide significant individual mentorship to NSF grantees. He said that the NSF also endeavors to have as much diversity as possible on its review panels to serve also as ambassadors to the community.
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1Christopher Rinaldi held the position of DoD SBIR program administrator at the time of the workshop.
Richard Leshner, NASA’s SBIR/STTR coordinator at the time of workshop, said that NASA’s SBIR program has focused on Phase I and Phase II contracts and could learn from other agencies about increasing its focus on commercialization. With the retirement of the space shuttle, NASA is in transition and has adopted eight new programs for space technology development at all Technology Readiness Levels. Those programs have explicit objectives to reach undergraduate and graduate students. To accomplish those objectives, Dr. Leshner said, NASA could work more closely with its Office of Small Business Programs, which runs 10 small business centers around the country. “No single right idea or solution is likely to increase diversity of SBIR contracts and grants,” he said.
Ronald Cooper of the U.S. Small Business Association (SBA) said that in order to solve the SBIR program’s diversity shortfall, federal agencies need to improve outreach and the application process and consider whether to adopt new incentives. The SBA performs a coordinating role for outreach and could maintain a central database of potential outreach partners, including nonprofits and state and local development institutions. Mr. Cooper said that the National Academies’ survey studies would be helpful to such efforts. Assessing woman and minority SBIR participation rates within the relevant economic and demographic context will give agencies a better sense of how to focus their outreach efforts.
Closing the workshop, Dr. Gansler thanked the speakers and attendees and emphasized the importance of maintaining the SBIR program as a merit-based program, based on incentives rather than mandated outcomes.
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