NEWS | New Study Confirms SBIR/STTR Programs Deliver Big Wins for Small Business, Support from NSBA, SBTC
- NSBA
- 20 minutes ago
- 2 min read
NSBA and our Small Business Technology Council (SBTC) continue urging support for SBIR/STTR programs on Capitol Hill and across the country.
JAN. 12, 2026 | A newly released study from the National Academies of Sciences, Engineering, and Medicine (NASEM) delivers powerful, independent validation of what small innovative businesses have long known: the SBIR and STTR programs are critical engines of innovation, commercialization, and national defense.
Focusing on the Department of Defense’s (DoD's) SBIR/STTR programs, the report finds these initiatives consistently deliver outsized returns for both the warfighter and America’s small business innovation ecosystem.
Among the study’s key findings, NASEM concludes that companies participating in DoD’s SBIR/STTR programs now fulfill a significant and growing share of the department’s extramural research and development needs, accounting for nearly one-third of the defense R&D base.
Even more striking, for every dollar DoD invests through SBIR/STTR, participating firms go on to attract more than four dollars in additional, non-SBIR/STTR DOD funding, which is clear evidence that early-stage small business innovation translates into scalable, mission-ready solutions. The study also highlights strong knowledge transfer from SBIR/STTR awardees to prime defense contractors, underscoring the programs’ role in strengthening the broader defense industrial base.
Importantly for small-business owners, the report directly addresses a growing policy debate in Congress over whether to limit participation by so-called “experienced firms” that have won multiple SBIR/STTR awards. NASEM found that these companies play a vital role in the innovation ecosystem and warned that restricting their participation would actively harm DoD’s ability to deliver cutting-edge technologies quickly.
The study recommends that Congress preserve flexibility for program managers to select the best technologies and the firms most capable of rapid delivery, rather than imposing rigid caps based solely on prior awards.
As Congress continues negotiations over the future of SBIR/STTR programs, this study arrives at a critical moment. Its findings reinforce NSBA’s long-standing position that SBIR/STTR programs are not only effective, but essential, fueling small-business growth, accelerating commercialization, and strengthening U.S. competitiveness and security.
Limiting access or weakening these programs would undermine one of the federal government’s most successful partnerships with small, innovative companies.
NSBA will continue advocating to protect and strengthen SBIR/STTR so small businesses can keep delivering breakthrough technologies, creating jobs, and supporting national priorities.
You can read and download the full NASEM study here.
