News From the
Committee on Small Business
Subcommittee on Contracting and Technology
Glenn Nye, Chairman

For Immediate Release                       CONTACT:  Clark Pettig
June 11, 2009                                                     202-225-4215

House Panel Passes Legislation Updating Small Business Research Programs

WASHINGTON, D.C. —Today, the House Committee on Small Business’ Subcommittee on Contracting and Technology approved four pieces of legislation that will modernize important federal small business research and development (R&D) programs. Rep. Glenn Nye (D-VA), the Chairman of the Subcommittee, said that, by updating the Small Business Innovation Research (SBIR) and the Small Business Technology Transfer (STTR) programs, the bills will help small firms develop new products, create new jobs and foster economic growth.

“Entrepreneurs are natural innovators, and both SBIR and STTR have sparked technological breakthroughs in industries ranging from healthcare to defense,” Nye said. “Though immensely valuable, these initiatives haven’t been updated in eight years. The small business community has evolved since then, and it is critical that these programs reflect those changes.”

Credited with everything from advances in state-of-the-art lithium ion batteries for hybrid engine technology to life-saving therapies and drugs, the Small Business Innovation Research program requires federal agencies to reserve a portion of their external budgets R&D budgets for small businesses. The Small Business Technology Transfer provides funding to joint research efforts between small businesses and nonprofit institutions like universities and colleges. The bills approved today will streamline the programs to encourage innovation, expand outreach to rural businesses and businesses owned by veterans, women and minorities, and help small firms bring more newly developed products to market. The four bills include:

H.R. 2769, the “Commercializing Small Business Research and Development Act,” authored by Rep. Bobby Bright (D-AL);
H.R. 2767, the “Investing in Tomorrow’s Technology Act,” which was introduced by Rep. Sam Graves (R-MO);
H.R. 2772, the “SBIR and STTR Enhancement Act,” which was offered by Rep. Aaron Schock (R-IL); and
H.R. 2747, the “Technology Development and Outreach Act,” which was authored by Rep. Deborah Halvorson (D-IL).

Witnesses at previous Committee hearings testified that the SBIR and STTR programs help launch 1,500 companies every year. At today’s mark-up, lawmakers said that a struggling economy can often serve as a catalyst for technological innovation, making support for small business research important to the nation’s economic recovery.

“Downturns tend to have a catalyzing effect on inventors and, with the right support, innovative entrepreneurs will help lead the way out of this recession,” Nye said. “By investing in the SBIR and STTR programs, we can help drive our nation’s economic recovery with advances that open new markets and create new jobs.”

The Subcommittee approved the four bills by voice vote. The measures now go to the full House Small Business Committee, before the entire House considers them. Absent action by Congress, both the SBIR and STTR programs are set to expire at the end of July.

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Click here for video of the hearing.