SBIR describes U.S. federal grants that fund research and development by small businesses.
The Small Business Innovation Research program was created to increase the participation of small firms in federally funded research. Agencies with significant research budgets set aside money for eligible small businesses to investigate ideas, develop prototypes, and pursue potential commercialization.
SBIR is commonly confused with the Small Business Administration, abbreviated SBA. The SBA is a federal agency, whereas SBIR is a research-funding program administered through participating agencies. A related program, STTR, also supports small-business research but requires a formal partnership with a nonprofit research institution.
SBIR funding is usually organized in phases. Early awards support feasibility and proof of concept, while later phases can support development and commercialization. This structure helps small technology companies turn research ideas into products without relying entirely on private investment.