NOV. 05, 2025 | Unique to the small-business community and the sibling program to the Small Business Innovation Research (SBIR) program, the Small Business Technology Transfer (STTR) program stands out for its requirements on formal collaboration between small businesses and non-profit research institutions. Universities often struggle to commercialize their federally-funded research; however, STTR encourages these institutions to leverage small-business entrepreneurship to move its technologies into the marketplace.
For a few examples:
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STTR is more geographically distributed in rural areas than often assumed.
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In many undeserved states, large state universities and labs are the only major source of research and development (R&D), STTR is designed specifically to tap into that innovation.
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Data shows underserved areas do receive a larger piece of the pie of both STTR funding and Phase 1 awards than SBIR.
Bottom 25 Performing States’ Share of STTR vs SBIR, 2015-2024
|
2015-2024 |
Funding |
% Total of Funding |
Ph1 Awards |
% of all Ph 1 Awards |
|
Bottom 25 States SBIR |
$2,434,561,381 |
7.71% |
2634 |
8.06% |
|
Bottom 25 States STTR |
$471,170,718 |
10.49% |
746 |
10.32% |
Source: SBIR.gov
The American Association of Universities (AAU) recently conducted a study showing how much rural counties have benefitted from STTR:
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Small businesses in Alabama alone received over $108 million in STTR grants. This amounts to just over $21 per person—this ranks Alabama in the top 10 in the nation per capita.
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Small businesses in rural counties have received nearly $260 million in STTR funding.
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Rural counties have also secured $1.45 billion in SBIR seed funding for innovation.
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This broad reach demonstrates that SBIR/STTR is a tool for innovation in all communities, ensuring that rural areas share in the benefits of federal investment.
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Follow the link below to read AAU’s issue brief here.