Another example is shown by this artificial knee. Our solar cell 

 processing technology was used to improve the performance of this 

 artificial knee in the human body. Originally, Oak Ridge Research 

 Labs did work to show that the technology could be applied to a 

 knee to make it harder and more wear resistant in the body. Under 

 SBIR funding from NSF principally, we were able to bring this into 

 commercialization and today we process maybe 25 percent of the 

 number of artificial joints produced in the United States. 



Currently, we have NIH support to advance that technology by 

 adding very hard coatings to orthopedic devices. So, the program 

 has made major contributions to Spire and our growth. The STTR 

 Program is a good idea. I think it relates to the fact that we were 

 able to get Oak Ridge technology into our orthopedic's business. 

 The STTR Program would help do that in many instances. But cur- 

 rently there is just not enough money in STTR to do much with 

 it and it is my guess that the proposal costs generated for a small 

 amount of funds that were available this past year were greater 

 than the ultimate funding. 



The SBIR Program has grown and it has become better over the 

 years. With the heavy emphasis on commercialization, however, 

 they are becoming more of a disconnect between the topics and the 

 ability to commercialize them. To emphasize far out, very innova- 

 tive technology, is to make commercialization come even later on. 

 If somehow this could be brought closer together, especially in the 

 defense community. There are some topics there which may be just 

 impossible to commercialize. 



In most cases, there is not enough time to go from Phase I to 

 Phase II to a commercial product. Even in the examples that I 

 have cited, 5 to 10 years are the kinds of timeframes it took after 

 the initial funding. So, I have felt that a Phase III kind of concept 

 which would be a heavily cost-shared program, maybe 50/50 be- 

 tween the small business and the Government, would help that 

 transition and give more time to get some of these ideas into com- 

 mercialization. 



Thank you very much. 



[Mr. Little's statement may be found in the appendix.] 



Chairman Torkildsen. Thank you very much for your testi- 

 mony, Mr. Little. Now I would like to ask the advocate, Mr. Jere 

 Glover for your testimony. 



TESTIMONY OF JERE W. GLOVER, CHIEF COUNSEL FOR 

 ADVOCACY, U.S. SMALL BUSINESS ADMINISTRATION 



Mr. GivOVER. Thank you, Mr. Chairman. I am indeed pleased to 

 be here. I would like to introduce first, Jeffrey Kane, who is a spe- 

 cial assistant to the Administrator of SBA for Innovation and the 

 program managers from the various agencies, if I could ask them 

 to stand for just a moment. These are the individuals who with 

 very limited resources have done an excellent job of implementing 

 this program. We have a number of them here, plus several of 

 them are going to be testifying later today. But I think they de- 

 serve special recognition for the fine job they have done through 

 the years. 



Chairman TORKILDSEN. You have just explained the high number 

 of attendees at this hearing. Thank you very much. 



