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glossary

STTR (Small Business Technology Transfer)

What is the STTR program?

The Small Business Technology Transfer program is a federal research and development program closely related to SBIR. Like SBIR, it directs a set-aside portion of certain agencies' R&D budgets to small businesses, funds work in phases, and is non-dilutive. The defining difference is collaboration: STTR requires the small business to formally partner with a nonprofit research institution, such as a university or a federally funded research center.

How it differs from SBIR

Under STTR, the work must be split between the two partners according to minimum thresholds: the small business performs a required share, and the research institution performs a required share. The aim is to move promising research out of the lab and into commercial and government use, bridging academic innovation and small-business execution. SBIR, by contrast, does not require a research-institution partner and lets the small business do the bulk of the work itself.

Why it matters to small businesses

STTR is a powerful fit if your innovation is rooted in university or institutional research, or if you want access to specialized expertise and facilities you do not have in-house. It funds development without taking equity and builds a federal track record. If you do not need an institutional partner, the SBIR program is usually the simpler path.

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