64 



rights in data generated in the performance of the contract by 

 the small business concern."^ One view of the entrepreneurs is 

 that the SBIR program provides the best, and in many cases the 

 only, source of seed capital to commercialize high risk 

 technologies. This synergy of meeting both the research mission 

 needs of the funding agencies and the seed capital needs of 

 entrepreneurs is the fundamental genius of the SBIR program. Only 

 the best proposals are funded and few entrepreneurs expect to 

 become wealthy on the SBIR awards; but the potential of future 

 commercial success encourages many companies to engage in 

 technological stretches that they could not fund from any other 

 source. If they succeed in developing a viable commercial product 

 they are rewarded in the marketplace. 



The commercialization success of the SBIR program has been well 

 documented by both GAG and SBA using relatively conservative 

 standards.^ The general range of successful commercialization of 

 products and services developed under the SBIR program is on the 

 order of 25% to 30%, which compares favorably with industry 

 experience for commercially developed new products . •'■° With the 



^ Policy Directive: Small Business Innovation Research 

 fSBIR) Program — 1993 , SBA Office of Innovation Research and 

 Technology, January 26, 1993. 



^ Federal Research: Small Business Innovation Research Shows 

 Success but Can Be Strengthened , GAO/RCED-92-37 , and Results of 

 Three-Year Commercialization Study of the SBIR Program , SBA 

 Office of Innovation Research and Technology, 90-00.147 



^° Internal memorandum on Commercialization, SBA Office of 

 Advocacy, February 17, 1995. 



