There is no conflict of interest.
Highlights
- The study's objective was to examine the impact of the Small Business Innovation Research (SBIR)and Small Business Technology Transfer (STTR) programs on employment.
- The study used a nonexperimental design to compare the outcomes of firms that were recipients of the SBIR/STTR awards to a matched comparison group of non-recipient firms. The authors used administrative data and statistical models to compare the outcomes of the treatment and comparison groups at one and three years post-award.
- The study found that first-time SBIR/STTR awardee firms had significantly fewer employees relative the comparison group at both one year and three years post-award.
- This study receives a moderate evidence rating. This means we are somewhat confident that the estimated effects are attributable to the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs, but other factors might also have contributed.
Features of the Intervention
The Small Business Administration (SBA) established the Small Business Innovation Research (SBIR) program in 1982 and the Small Business Technology Transfer (STTR) program in 1992 to support small businesses in their research and development (R&D) efforts to address government needs in key areas. The most recent reauthorizations of the programs aim to promote innovation and boost job creation in small businesses across the U.S., including businesses with fewer than 500 employees. The SBIR/STTR award program offers federal R&D funding to encourage innovation within small businesses, particularly in the science and technology sectors.
Features of the Study
The study used a nonexperimental design to compare employment outcomes of firms that were recipients of the SBIR/STTR award to non-recipient firms. Data for the study were sourced from archival databases, including the SBA SBIR/STTR Company and Award Listing, the U.S. General Services Administration System for Award Management (SAM), SBA Dynamic Small Business Search (DSBS), USASpending, Economic Development Administration Cluster Map (Cluster), U.S. Patent and Trademark Office, and the National Establishment Time-Series (NETS). Eligible firms were selected using the SBIR/STTR award datasets, SAM, and DSBS. The authors restricted the sample to first-time award recipients. The sample consisted of 8,324 firms across the U.S., with 4,162 being first-time recipients of funding (treatment group) and another 4,162 that met eligibility criteria but did not receive funding (comparison group). The study matched SBIR/STTR recipients with comparable non-recipients on observable characteristics, such as firm age, size, industry, location, and credit availability. The authors used statistical models to compare the employment outcomes of award recipients to non-recipients.
Findings
Employment
- The study found that treatment firms had significantly fewer employees than comparison firms at both one year and three years following the award.
Considerations for Interpreting the Findings
The study found a negative relationship between the funding and long-term employment outcomes. However, the authors identified several external factors including industry and scope of business that may have also contributed to the observed findings.
Causal Evidence Rating
Research Guidelines
Review Protocol: Living Systematic Annual Search and Review Protocol
Review Guidelines: Causal Evidence Guidelines