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Mr. Chairman and Members of the Subcommittee: 



We are pleased to discuss the results of our review of the 

 Small Business Innovation Research (SBIR) Program.' The Small 

 Business Innovation Development Act of 1982, which authorized the 

 SBIR Program, emphasized the benefits of technological innovation 

 and the ability of small businesses to transform research and 

 development results into new products. Reflecting its view of the 

 program's success, the Congress reauthorized the program in 1992 

 and provided for a doubling of program funding to approximately $1 

 billion by fiscal year 1997. Last month, we issued a report that 

 assesses (1) whether quality research proposals have kept pace with 

 the program's expansion, (2) the implementation of a provision for 

 technical assistance to SBIR companies, and (3) the duplicate 

 funding of similar research. 



My discussion today highlights the message of our report: 



-- To date, the quality of research proposals appears to have 

 kept pace with the program's expansion. Our view is based 

 on the (1) high level of competition, (2) large numbers of 

 proposals that agencies deemed worthy of funding but that 

 received no award, and (3) views expressed by program 

 officials that quality is being maintained. However, it is 

 too early to make a conclusive judgment about the long-term 

 quality of research proposals because the major increases 

 in program funding have not yet occurred. 



-- None of the 5 federal agencies that provide over 90 percent 

 of the SBIR funding have taken steps to implement the 

 discretionary technical assistance provision, and future 

 implementation remains uncertain. Program officials saw no 



' Federal Research: Interim Report on the Small Business 

 Innovation Research Program (GAO/RCED-95-59 , Mar. 8, 1995) 



