Summary: As a nation competing in a global economy, the United States depends heavily on innovation through research and development. Because small business is a source of significant innovation, Congress created the Small Business Innovation Research Program in 1982 to increase private sector commercialization of technology. Ten federal agencies participate in the program. Each agency manages its own program, while the Small Business Administration plays a central administrative role, such as issuing policy directives and annual reports for the program. This testimony draws on an April 1998 report (GAO/RCED-98-132) that discusses (1) agencies' adherence to statutory funding requirements, (2) agencies' audits of extramural research and development budgets, (3) the effects of the application review process and funding cycles on award recipients, (4) the extent of companies' project activity after receiving program funding and agencies' techniques to foster commercialization, (5) the number of multiple award recipients and the extent of project activity after receiving program funding, (6) the occurrence of funding for single proposal awards, (7) participation by women-owned businesses and socially and economically disadvantaged businesses, (8) the program's promotion of critical technologies, (9) the extent to which foreign firms benefit from program results, and (10) the geographical distribution of awards.
