The Information Technology and Innovation Foundation (ITIF) released a report criticizing the budget plan produced by the Heritage Foundation that would proposed severe cuts US R&D funding, including SBIR/STTR. ITIF argued that gutting Federal R&D funding would do severe harm to America’s innovation, productivity, and competitiveness on the world stage. They particularly highlighted SBIR and STTR programs as examples of Federal R&D programs that are universally praised as successful and effective. They point out that SBIR/STTR fulfills an economic role that the free markets either can’t or won’t, by providing funding to high-risk cutting edge technologies. ITIF goes on to criticize the Heritage budget plan as ideological and political, rather than based on objective facts and reason.
With the Trump Administration pushing for deep cuts to all civilian agencies, it is more important than ever to remind the Administration and Congress how successful programs like SBIR and STTR are in stimulating innovation and economic returns. It is also vital to continue and increase investment in R&D is to America’s economy and competitiveness with Europe and Asia, who already spend a far larger percent of their GDP on R&D than the US.