Small Business Innovation

Small business is the engine for the American economy, creating 60 to 80 percent of new jobs, and is key to innovation and new technology, which are critical to creating new jobs and getting the American economy back on track. This afternoon, the House passed the Small Business Research and Innovation Act (HR 2965) by a vote of 386-41. The bill modernizes and reauthorizes the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs -- the government's largest small business research and development programs. Since 1992, SBIR has provided 65,000 grants to small companies engaged in cutting edge research to cure diseases, strengthen our national defense and reduce our dependence on foreign oil. Every year, the SBIR program results in a $2.2 billion investment in small businesses, helping 1,500 new firms get off the ground.

Watch Rep. Brad Miller (D-NC) discuss two small businesses in his district who have received grants:

Rep. Miller: "Geoeffects developed a senser to detect electromagnetic changes beneath the service within 30 feet. NASA wants that technology so they can tell whether there is water beneath the surface of mars and that is reason enough to develop the technology. But Geoeffects has found many commercial applications. They're using that technology now to determine if there's water beneath the surface of earth. The Department of Defense is using that technology to detect land mines and mines in water. Construction companies are using the technology to detect buried cables and sewer lines and water lines."

High growth start-ups -- like these -- have job growth rates nearly four times that of bigger firms. Specifically, the bill:

Expands commercialization efforts to get the small businesses revolutionary technology and product into the markets

Makes it easier for small businesses that participate in SBIR to find capital to fund these innovative breakthroughs-- critical at a time of tight credit markets

Broadens the small businesses in these programs through outreach to rural entrepreneurs, as well as small businesses owned by women, minorities and veterans

Streamlines these key small business research and development programs to operate more efficiently, meet clear performance standards and put taxpayer dollars to the best use

Learn more about the bill>>

Watch Small Business Chair Nydia Velazquez on the legislation:

Chair Velazquez: "While our economy is recovering, it still has a ways to go. Even now we need to be focused on putting Americans back to work. We need growth that's lasting and industries that are sustainable. We need jobs that cannot be shipped overseas and will not evaporate in the next cycle of boom and bust. Those jobs aren't going to appear out of thin air they need to be created. By expanding existing industries and unlocking new ones, HR 2965 will generate the jobs we need."

Science Committee Chairman Bart Gordon (D-TN):

Since SBIR's beginning more than 25 years ago, we have learned about the significant contributions small high-tech start-up companies can make to growing our economy and creating jobs. In the current economic environment we need to do everything possible to support small high-tech entrepreneurs in the United States, and that's the goal of the SBIR program.