The STTR (Small business Technology Transfer) program is similar in structure to SBIR, but funds cooperative R&D projects involving a small business AND a research institution (i.e., college, university, federally-funded R&D center, or a nonprofit research organization). STTR seeks to create, for the first time, an effective vehicle for moving ideas from our nation's research institutions to the market, where those ideas can benefit both the private sector and government agencies.

To participate in the STTR program:

·      a firm must be a U.S. for-profit small business of 500 or fewer employees; there is no size limit on the research institution

·      research institution must be a U.S. college or university, Federally Funded R&D Center (FFRDC), or non-profit research institution

·      work must be performed in the United States

·      the small business must perform a minimum of 40% of the work and the research institution a minimum of 30% of the work in both Phase I and Phase II

·      the small business must manage and control the STTR funding agreement

·      the principal investigator may be employed at the small business or research institution

·      firm must be capable of performing high-quality R&D and providing solid project management