Focused ultrasound has the potential to address more than 180 diseases and conditions and impact millions of patients, but proper research funding is critical to this becoming a reality. The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs are US government programs that provide critical funding to expedite research and development (R&D). Between 1985 and 2022, these programs provided more than $40 million dollars for small businesses seeking funding to develop innovations in focused ultrasound technology.
SBIR and STTR are together known as “America’s Seed Fund.” These programs encourage small businesses in the US to engage in federal R&D with the intention of commercializing innovative technologies. SBIR receives 3.2% of the extramural research budget for agencies with a budget greater than $100 million per year, meaning this program has a minimum of $3.2 billion to award each year. STTR follows a similar rule, but it receives 0.45% of the extramural research budget for agencies with an annual budget greater than $1 billion, meaning it has at least $450 million to award. The majority of SBIR/STTR funding comes from the Department of Defense (DOD) and the Department of Health and Human Services (HHS), which includes the National Institutes of Health (NIH). Together, the SBIR and STTR programs fund 5,000 new awards each year.
SBIR/STTR strives to boost private sector commercialization of innovation derived from federal R&D, stimulate technology innovation, and foster technology transfer through R&D between small businesses and research institutions. The main difference between these two programs is STTR requires small businesses to collaborate with nonprofit research institutions and demands a more rigorous detailing of the allocation of intellectual property rights.
The STTR and the SBIR programs organize projects into three phases:
- Phase 1 projects are focused on concept development and determining the feasibility of the product. Funding for this phase typically ranges from $50,000-$250,000 for 6 months (SBIR) or 12 months (STTR).
- Phase 2 projects involve prototype development, and the amount of funding is based on a project’s technical merit and commercial potential, which are determined during Phase 1. Phase 2 funding typically ranges from $500,000 to $1.5 million for 24 months.
- Finally, Phase 3 is intended to facilitate commercialization and does not provide any funding. The structure of SBIR and STTR helps novel innovations get off the ground in Phase 1 and provides increased funding for projects that show promise is Phase 2.
How SBIR/STTR Can Benefit Focused Ultrasound
Between 1985 and 2022, SBIR/STTR funded more than $40 million of focused ultrasound technology-related innovation. This funding included 44 Phase 1 grants worth $9,230,098 and 19 Phase 2 grants worth $33,404,514. Of these grants, 46 were facilitated by HHS, 12 were funded by DOD, 3 fell under the National Science Foundation, and 2 were sponsored by the Department of Energy. For example, Sonovol, Inc. received Phase 1 and Phase 2 funding in 2019 and 2021, respectively, totaling nearly $2.3 million. This grant money, from HHS, funded R&D to improve focused ultrasound’s ability to complement or possibly replace certain oncology therapies. Another focused ultrasound project received Phase 1 and 2 funding from the DOD’s Defense Advanced Research Projects Agency to develop a wearable ultrasound device that provides both diagnostic and therapeutic functions to address obstructive sleep apnea, which is highly prevalent among military personnel. It is essential for focused ultrasound to continue to receive funding through SBIR and STTR programs to increase the range of its applications and increase the quality of life for millions.
Learn More about the SBIR and STTR Programs
Jessica Foley, PhD, is the chief scientific officer and the managing director of the Cancer Immunotherapy Program and Government Affairs at the Focused Ultrasound Foundation.