The NSF SBIR/STTR program encourages startups and small businesses to submit proposals across nearly all areas of science and engineering. *
While startups and small businesses face many challenges, the NSF SBIR/STTR funding is intended to specifically focus on challenges associated with technological innovation; that is, on the creation of new products, services, and other scalable solutions based on fundamental science or engineering. A successful Phase I proposal demonstrates how NSF funding will help the small business create a proof-of-concept or prototype by retiring technical risk. Funding from NSF may only be used to conduct research and development (R&D) to demonstrate technical feasibility.
NSF seeks SBIR/STTR proposals that represent success in three distinct, but related merit review criteria: Intellectual Merit, Broader Impacts, and Commercialization Potential.
The Intellectual Merit criterion encompasses the potential to advance knowledge and leverages fundamental science or engineering research techniques to overcoming technical risk. This can be conveyed through the Research and Development (R&D) of the project. R&D is broadly defined in 2 CFR § 200.1, but specified for the NSF SBIR/STTR program as follows:
the application of creative, original, and potentially transformative concepts to systematically study, create, adapt, or manipulate the structure and behavior of the natural or man-made worlds;
the use of the scientific method to propose well-reasoned, well-organized activities based on sound theory, computation, measurement, observation, experiment, or modeling;
the demonstration of a well-qualified individual, team, or organization ready to deploy novel methods of creating, acquiring, processing, manipulating, storing, or disseminating data or metadata; and/or
the novel integration of new theories, analysis, data, or methods regarding cognition, heuristics, and related phenomena.
NSF SBIR/STTR proposals are evaluated via the concepts of Technical Risk and Technological Innovation. Technical Risk assumes that the possibility of technical failure exists for an envisioned product, service, or solution to be successfully developed. This risk is present even to those suitably skilled in the art of the component, subsystem, method, technique, tool, or algorithm in question. Technological Innovation indicates that the new product or service is differentiated from current products or services; that is, the new technology holds the potential to result in a product or service with a substantial and durable advantage over competing solutions on the market. It also generally provides a barrier to entry for competitors. This means that if the new product, service, or solution is successfully realized and brought to the market, it should be difficult for a well-qualified, competing firm to reverse-engineer or otherwise neutralize the competitive advantage generated by leveraging fundamental science or engineering research techniques.
The Broader Impacts criterion encompasses the potential benefit to society and contribution to the achievement of specific, desired societal outcomes as outlined in the NSF PAPPG Merit Review Broader Impacts Criteria.
The NSF SBIR/STTR program funds the development of new, high-risk technology innovations intended to generate positive societal and economic outcomes. Proposers should also consider the Broader Impacts Review Criterion at 42 U.S.C. §1862p-14:
Increasing the economic competitiveness of the United States.
Advancing of the health and welfare of the American public.
Supporting the national defense of the United States.
Enhancing partnerships between academia and industry in the United States.
Developing an American STEM workforce that is globally competitive through improved pre-kindergarten through grade 12 STEM education and teacher development and improved undergraduate STEM education and instruction.
Improving public scientific literacy and engagement with science and technology in the United States.
Expanding participation of groups underrepresented in STEM.
The Commercialization Potential of the proposed product or service is the potential for the resulting technology to disrupt the targeted market segment by way of a strong and durable value proposition for the customers or users.
The proposed product or service addresses an unmet, important, and scalable need for the target customer base.
The proposed small business is structured and staffed to focus on aggressive commercialization of the product/service.
The proposed small business can provide evidence of good product-market fit (as validated by direct and significant interaction with customers and related stakeholders).
More details and information regarding the NSF SBIR/STTR merit review criteria can be found in Section VI of this solicitation.
* The NSF SBIR/STTR program does not support clinical trials or proposals from companies whose commercialization pathway involves the production, distribution, or sale by the company of chemical components, natural or synthetic variations thereof, or other derivatives related to Schedule I controlled substances.