Bending the Arc of Innovation: Public Support of R&D in Small, Entrepreneurial Firms

In this paper we overview a key national program that supports the development of new technology and innovation in small, entrepreneurial firms. The Small Business Innovation Research (SBIR) program was established by the Small Business Innovation Development Act of 1982. We conclude from our years of study of the SBIR program that it is indeed bending the arc of innovation. The majority of firms that received SBIR project funding reported that they would not have undertaken the project in the absence of SBIR support. And, it seems clear to us that the SBIR support has had a positive impact on the employment trajectory of firms and on their ability to commercialize innovations resulting from their funded research.