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initiatives to help their companies secure SBIR funds, with 

 30 states currently sponsoring such programs." 

 These states have independently validated the value of the SBIR 

 program by placing their funds and support behind their local 

 companies pursuing the awards. 



The validation of the small business community is perhaps the 

 best indicator of the commercial value of the SBIR program. Small 

 companies are well known for "voting with their proposal funds." 

 If they do not see a reasonable return to them on even the best 

 intentioned program, they don't submit proposals. In the case of 

 the SBIR program, the number of proposals submitted versus the 

 number of awards has consistently been on the order of a 10 to 1 

 ratio (ranging from 3:1 to 20:1 according to the various GAO and 

 SBA reports) over the thirteen years of the program. The 

 streamlined proposal format (maximum of 25 pages) allows 

 companies to propose quality solutions with a r.inir.um of proposal 

 expense. This high ratio of proposals to awards also permits the 

 funding agencies to select the highest quality proposals-- 

 ensuring that only the best ideas are funded. 



One of the valuable aspects of the SBIR program from the 

 standpoint of the entrepreneur is the ability ro retain the 

 commercial rights to the intellectual property generated in the 

 course of the conduct of the research. As mandated by Congress in 

 the legislation, the SBIR program provides for "retention of 



