Small Business Innovation Research and Small Business Technology Transfer

The United States Department of Energy administers a diverse array of grant programs, including the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR), collectively allocating approximately USD 300 million annually for energy R&D by small and medium-sized enterprises (SMEs). The SBIR, established under the Small Business Innovation Development Act of 1982, stands as the largest public innovation program in the United States, aimed at integrating small businesses into federally-funded R&D initiatives. It mandates federal agencies with budgets exceeding USD 100 million to allocate 3.2% of their extramural research budget to competitive grants and contracts, distributed in two phases: concept development (Phase I) and prototype development (Phase II). Through FY2019, over 179,000 awards have been made totalling more than USD 54.3 billion.

In 2024, the Advanced Research Projects Agency–Energy (ARPA-E) issued calls within the scope of SBIR/STTR for proposals in areas such as Quantum Computing for Chemistry, AI and autonomous laboratories for industrial catalysts, fusion energy materials, and geothermal power from deep superhot reservoirs. Additionally, business development grants are available for start-ups to tackle R&D-intensive challenges and collaborate with the not-for-profit sector.

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