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Business Technology Transfer Pilot program (STTR) . This program 

 also involves small business in the Federal R&D effort. The 

 essential difference between SBIR and STTR is that the small 

 business must have a research institution as a partner. The 

 partner must be either a non-profit research institution such as a 

 university or a Federally Funded Research and Development Center 

 (FFRDC) . 



Duplicating many of the features that made SBIR so successful, 

 the STTR program has three phases. It consists of Phase I which is 

 basically a feasibility study, Phase II which is the actual R&D 

 effort, and Phase III, the commercialization phase. It's funding 

 is based on a set aside of the extramural R&D budgets of those 

 agencies with annual extramural budgets of $1 billion or more. 

 There are five agencies that met this criterion and all were 

 directed to set aside not less than .05% of extramural R&D 

 obligations in FY 1994, and will set aside .1% in FY 1995, and .15% 

 in FY 1996. The authorization for STTR expires at the end of FY 

 1996 unless reauthorized by Congress. As with SBIR the funding for 

 this program is a set -aside from existing expenditures. There are 

 no additional funding obligations for this program. 



The legislation directed that SBA undertake numerous actions 

 to assure the successful implementation of the STTR program. 

 Working with the five participating agencies we have successfully 

 completed all those actions in a timely manner. 



