Economic contribution of federal funding for Small Business Innovation Research (SBIR) and Small Business Technology Transfer (SBTT) programs
Key findings for communities
- Between fiscal years 1983 and 2015, Minnesota small businesses awarded SBIR/STTR funding generated an estimated $2.1 billion (in 2017 dollars) of economic activity.
- In fiscal year 2015, the total economic contribution of funding received by Minnesota SBIR/STTR awardees was an estimated $58.8 million. This includes $21.5 million in labor income.
- SBIR/STTR funding supported an estimated 289 jobs across all industries in Minnesota during fiscal year 2015.
- The scientific research and development and electromedical and electrotherapeutic apparatus manufacturing industries received the highest award amounts. Industries benefiting the most from the secondary effects of award spending included the employment services and real estate industries.
About this study
The mission of the SBIR/STTR programs is to support scientific excellence and technological innovation through the investment of federal research funds in critical American priorities to build a strong national economy, one small business at a time. In Minnesota, the Minnesota High Tech Association is home to MN-SBIR and helps small businesses access SBIR/STTR funding.
Program goals for small businesses are to meet federal research and development needs; increase private-sector commercialization of innovation derived from federal research and development funding; stimulate technological innovation; foster and encourage participation in innovation and entrepreneurship by socially and economically disadvantaged persons; and foster technology transfer through cooperative research and development between small businesses and research institutions (required for STTR).
This analysis includes federal SBIR/STTR awards and private investments leveraged by those businesses due, in part, to the awards and success of the small businesses. However, the analysis only includes private investment documented by MN-SBIR. It is likely not all private investment has been captured, making this a conservative analysis.
Keywords: Economic Impact Analysis
Reviewed in 2017