Identification of current or future customers willing to buy your products or services is essential to efficiently focus on both early stage research and subsequent product development. The Defense Reauthorization Act of 2012 gave extended life to the SBIR/STTR program but also demanded that the award winners focus on driving the research toward a marketable product and/or service. This activity must start as soon as there is initial funding. A delay in this effort will reduce the effective use of the SBIR funds.
SBIR Commercialization Rate Benchmark
The new law requires that SBIR awardees focus on the end goal of producing a product rather than focusing on pure research. The agency Commercialization Rate Benchmark sets the minimum Phase III commercialization results that a Phase I applicant must have realized from its prior Phase II awards in order to be eligible to receive a new Phase I award from that agency. This benchmark requirement applies only to Phase I applicants that have received more than 15 Phase II awards over the time period used by the agency for the benchmark determination. By measuring this performance, the government can determine if they want to give future SBIR Phase I awards to a company. It means the small business must focus on how to bring the research to market. This is sometimes a foreign concept to technical oriented personnel. ReliAscent can fill this void on an "outsourced" basis.
Phase II Transition Rate Benchmark
The Phase II Transition Rate Benchmark sets the minimum required number of Phase II awards the applicant must have received for a given number of Phase I awards received during the specified period. This Transition Rate Benchmark applies only to Phase I applicants that have received more than 20 Phase I awards over the time period used by the agency for the benchmark determination.
These new requirements are intended to reduce companies that were "SBIR houses" that funded the company only with government SBIR grants. The goal of the SBIR program is to spur innovation and deliver new product ideas to the market in the United States. This program will require more emphasis on how to get the product to market. Many technologists need help with this concept and ReliAscent can fill that help requirement.
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