The Small Business Technology Transfer (STTR) program is unique because it requires formal collaboration between small businesses and non-profit research institutions.  Universities often struggle to commercialize their federally-funded research, so STTR encourages them to leverage small business entrepreneurship to move its technologies into the marketplace.

  • STTR is more geographically distributed in rural areas than often assumed.
  • In many undeserved states, large state universities and labs are the only major source of R&D, STTR is designed specifically to tap into that innovation
  • Data shows that underserved areas do get 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:

  • 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.
  • Small businesses in rural counties have received nearly $260 million in STTR funding.
  • Rural counties have also secured $1.45 billion in SBIR seed funding for innovation.
  • 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.
  • Follow the link below to read AAU’s issue brief:

https://www.aau.edu/key-issues/americas-seed-fund-issue-brief-sbirsttr