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

For Immediate Release                                          CONTACT: Clark Pettig (Nye) 202-225-4215
September 24, 2009                                                    Small Business Press Office 202-226-3636

Federal Labs Critical to Spurring Entrepreneurial Innovation

WASHINGTON, D.C. —Members of a House Small Business Subcommittee today examined how federal labs partner with small businesses to spur technological breakthroughs, bring new products to market and support local economic growth.  Rep. Glenn Nye (D-VA), the Chairman of the House Committee on Small Business’ Subcommittee on Contracting and Technology chaired the hearing, which featured Hampton Roads area entrepreneurs who work with NASA at the agency’s Langley Research Center and Wallops Flight Facility. 

“American innovations in technology aren’t just found in Silicon Valley, they are being pioneered by cutting edge small businesses around the country,” Chairman Nye said.  “Entrepreneurs perform valuable work that advances our government’s research goals in everything from energy to agriculture to space exploration.”

During Thursday’s hearing, Hampton Roads area entrepreneurs explained how their collaboration with NASA at the Langley Research Center and Wallops Flight Facility has helped support an estimated 11,000 jobs and generated nearly $1 billion in revenue.  Nationally, the two centers have created an additional 25,000 jobs and $2.8 billion in revenue. 

Analytical Mechanics Associates, a small firm in Hampton, Virginia, is one example of how entrepreneurs work with federal labs to bring new products to market.  The company, which appeared before Nye’s panel Thursday, developed software to enable NASA to design spacecraft.  The same software is now used by interior designers and architects to help plan new offices and homes. 

“Not only does cooperation between entrepreneurs and federal research facilities help meet critical national needs, but it often results in the commercialization of new products,” Nye said. “Supporting the development of products like these can spur job growth and help put our economy back on track.”

In addition to promoting technological breakthroughs and the creation of new products, federal labs also serve to generate a wide range of economic activity that benefits small businesses.  Small firms frequently contract with labs for repairs and maintenance and lab employees frequent other local small businesses.  Construction Development Services, a Norfolk based firm, also testified Thursday describing how renovation work the firm has performed at the Wallops facility is helping to create jobs.

“Our federal labs serve as a hub of local economic activity,” Nye said.  “We need to continue making wise investments in our nation’s R&D infrastructure so we can support small business growth and help put our nation back on a path toward economic prosperity.”

As the Chairman of the Contracting and Technology Subcommittee, Nye’s first hearing called on the government to improve its small business contracting record, especially for veteran-owned businesses.  The House of Representatives also recently passed Nye’s Veterans Business Center Act, which will create a national network of resource centers to help veterans start and run their own small businesses.   

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Click here to view video of the hearing.