STTR is a federal R&D grant program — sibling to SBIR — that requires a formal research partnership with a university or research institution. Five agencies participate: DOD, NIH, DOE, NASA, and NSF. Like SBIR, awards are non-dilutive grants.
The Small Business Technology Transfer (STTR) program was created by the Small Business Technology Transfer Act of 1992. It operates alongside SBIR but focuses specifically on transferring technology from research institutions (universities, federally funded R&D centers, or non-profit research institutions) to the commercial market through small-business partnerships. The key structural difference from SBIR: STTR requires the small business to formally partner with a research institution, and at least 30% of the work must be performed by the research institution. The small business must perform at least 40% of the work. This makes STTR particularly suited for university spinouts and companies commercializing academic research. Five agencies participate in STTR (vs. 11 for SBIR): Department of Defense (DoD), National Institutes of Health (NIH), Department of Energy (DOE), National Aeronautics and Space Administration (NASA), and National Science Foundation (NSF). Award sizes and phase structure mirror SBIR — Phase I feasibility, Phase II R&D, Phase III commercialization. The official SBIR/STTR portal at sbir.gov (https://www.sbir.gov/about-sttr) describes STTR eligibility, the research-institution partnership requirement, and open solicitations. The SBA administers STTR coordination across all five agencies (https://www.sba.gov/funding-programs/investment-capital/sbir-sttr-programs).
At least 30% of the work must be performed by the research institution partner. The small business must perform at least 40% of the work. The remaining up to 30% can be allocated to either the small business or the research institution, or to a third party with agency approval.
STTR-eligible research institutions include US colleges and universities, non-profit research institutions, and federally funded R&D centers (FFRDCs like the MIT Lincoln Laboratory or the RAND Corporation). The institution must be located in the US. A formal cooperative R&D agreement (CRADA or similar) is required.
Yes. SBIR and STTR are separate competitions — winning one does not preclude applying to the other. Many companies apply to both simultaneously when the research topic fits both programs. SBIR has broader agency participation (11 vs. 5), so companies without a strong research-institution partner often focus there.