Madam Chairman, I yield myself such time as I may consume. The Small Business Innovation Research (SBIR) program and the Small Business Technology Transfer (STTR) program both were created to stimulate technological innovation, encourage…
Madam Chairman, I yield myself such time as I may consume.
The Small Business Innovation Research (SBIR) program and the Small Business Technology Transfer (STTR) program both were created to stimulate technological innovation, encourage the use of small businesses to meet Federal research and development needs, and increase private sector commercialization of innovations developed from Federal research and development. I believe both programs have been very successful and should be continued, and, on that basis, I support the legislation before us, although I disagree with some aspects of it.
The Science and Technology Committee has a long standing interest in promoting innovation and development by small businesses. Through these two competitive programs, the Small Business Administration is charged with ensuring that the Nation's small innovative businesses are a significant part of the Federal Government's research and development efforts. Currently, 11 Federal departments participate in the SBIR program, including the Departments of Agriculture, Defense, Commerce, Education, Energy, Health and Human Services, Homeland Security, and Transportation, as well as the Environmental Protection Agency, the National Aeronautics Space Administration, and the National Science Foundation. Of these 11, five departments also participate in the STTR program, awarding $200 billion to small high-tech businesses.
The original legislation for SBIR was developed based on the Small Business Innovation Research program of the National Science Foundation. The NSF program was designed to encourage proposals from small science and technology firms in NSF program areas. The current Federal-wide program mirrors the original NSF program, which was also organized in three phases to ensure the most efficient use of resources.
Phase I was an opportunity to develop research on important scientific and engineering problems. Projects that were found to be promising after the phase I research stage were given phase II awards to further develop the research project. Phase III is a transition phase that involves commercialization of the products or processes developed in the first phases.
Similar to SBIR, STTR is also a highly competitive three-phase program that reserves a specific percentage of Federal research and development funding for small businesses to work in partnership with nonprofit research institutions to help move ideas from the laboratory to the marketplace, to foster high-tech economic development in the United States, and to help to meet the technological needs of the Federal Government. Since the implementation of this program in 1983 through fiscal year 2006, over $20.7 billion has been given in awards for more
than 94,660 projects. The Government Accountability Office, which has been charged with assessing this program, has generally found that these programs have achieved the goal of enhanced participation of a small business in research and development fields.
Given the interest of the Committee on Science and Technology on the research and development of new technology, our committee has a unique interest in this bill. We have long been concerned about how America competes with the rest of the world in these areas. Many initiatives that have been passed by our committee in this Congress have focused on the need to improve our competitiveness in the world through funding of science education programs and public outreach efforts. I view this legislation as one more way we can reach out to the public to assist American innovation.
My only regret with regard to this legislation is that I do not believe it was able to receive the proper attention it warranted by the Committee on Science and Technology. Our committee shares jurisdiction on this legislation, primarily concentrated on the areas of science itself and the amount of science funding.
However, the full committee was not given the opportunity to consider this legislation and have its voice heard with regard to its continuation, primarily because there was a great hurry to bring this bill to the floor. Had regular order been provided, I believe we would be bringing a different bill to the floor today. And in view of that, I have offered an amendment that I believe will strengthen the bill, make it sounder in funding, preserve the funding of other resources and other research in the Federal Government, and also provide an opportunity to increase the funding for SBIR and STTR in the future by bringing up the funding for the other agencies of which these two organizations receive a percentage.
But I believe the approach in the bill of simply arbitrarily increasing the funding for SBIR and STTR hurts our research efforts in the Nation, and I will speak later on that topic when my amendment reaches the floor.
The second reservation is voiced by Mr. Gingrey of Georgia and, if we have time, we will enter into that discussion later and I will give him an opportunity to speak.
I reserve the balance of my time.
Madam Chairman, I am very pleased to yield 4 minutes to the distinguished gentleman from Georgia, Dr. Gingrey.
May I inquire as to how much time I have remaining.
Madam Chairman, I reserve the balance of my time.
Madam Chairman, I reserve the balance of my time.
I am prepared to close, Madam Chairman.
Madam Chairman, the substance of the bill is good. I support the general intent of it.
I am very concerned about several aspects. One of those is the size of the increase of the allocation, which is going to hurt our Nation's research effort in its totality. Secondly, the issues raised by Dr. Gingrey which involve giving perhaps too much control and power to the venture capitalists. And, third, the issues relating to the other issues that Dr. Gingrey brought forth regarding category I and category II funding, and the interplay between the two.
If we can solve these problems I would hope to support the bill.
Madam Chairman, I have an amendment at the desk.
Thank you, Madam Chairman. I appreciate the recognition.
This amendment is very important in terms of the total research effort of our Nation. H.R. 5819 would increase the Small Business Innovation Research program set-aside from 2.5 percent to 3 percent, a 20 percent increase. It would also increase the Small Business Technology Transfer program set-aside from 0.3 percent to 0.6 percent, a 100 percent increase. My amendment would remove these increases and keep the current set-asides in place at 2.5 percent for SBIR and 0.3 percent for STTR.
This is an extremely important issue. The Science and Technology Committee has worked very hard during the last few years to get the America COMPETES authorization bill signed into law. It has now been signed into law. It establishes a funding doubling path for several agencies under Science Committee jurisdiction, several of which are SBIR and STTR funding agencies. However, finding the money to fund these authorizations has not been so easy, and in fact these increased authorizations have not been appropriated.
Several of my colleagues have expressed the opinion that an increase in the set-aside for these two programs was justified by the authorized funding increases in the COMPETES Act. However, as I said, these have not been appropriated.
My concern and my purpose behind my amendment is to make sure that we are not robbing Peter to pay Paul. If we increase the SBIR and STTR program percentages while other agency's funding remains flat, we begin to severely erode our fundamental research base. I would much rather see us fight over extra funding for our basic research programs, our fundamental research programs, of which a percentage would then transfer into SBIR and STTR.
I should point out that my amendment is supported, first of all, by Mr. Obey, who is chairman of the House Appropriations Committee. He has spoken to me about it, and asked me to specifically mention that he supports my amendment.
I believe it is also supported by a large number of Members, as well as the Association of American Universities, the American Association of Medical Colleges, the Biophysical Society, the Campaign for Medical Research, the Federation of American Societies for Experimental Biology, the National Association of State and Land Grant Colleges and the Small Business Administration.
To quote the President of the Association of American Universities, the change ``would translate directly into cuts in both nominal and real terms in the budgets of most Federal research agencies.''
In real terms, the proposed changes would remove approximately $650 million that is currently provided to researchers, especially those at universities around the country. At the National Institutes of Health, which I believe everyone in this body supports very strongly, if we do not adopt this amendment, the NIH budget would be reduced by $185 million. That is a severe cut.
So I urge the adoption of my amendment. I think it actually will improve things. I hope that in the next few years we will get substantial increases in the amount of funding for the various research agencies and SBIR and STTR would receive substantial increases to the percentage that they will continue to receive.
Madam Chairman, I reserve the balance of my time.
I would just like to offer a few closing comments.
First of all, I thank you for your offer to work on this problem together. As you know from working with me on this so often, I totally support research in all areas. My concern in this case is that we would be giving some money to one agency and taking it from others. I think we should work together to increase the funding for both, and all boats will rise. If we manage to give the appropriate amount of money to the research institutions, then SBIR and STTR will automatically increase because of that. So if we work together from that standpoint, I think we will be in total agreement.
Madam Chairman, I yield back the balance of my time.
I thank the gentleman for yielding, and would like to comment on this amendment.
I have no great objection to it, but I am not terribly excited about it, either. Let me comment.
I personally would prefer, if we are going to show preferences here and use the money for that purpose, I would really prefer that we use those funds to give preference to those organizations that submit proposals for doing research and developing areas that will reduce carbon emissions. I think in the long run that might be better for the Nation than simply rewarding those who have taken steps within the organization rather than developing new ideas and inventions that can apply to everyone in the Nation.
So, as I said, I will not oppose it, but I did want to make that suggestion.
Madam Chairman, would the gentlelady yield?
I am not necessarily in opposition to this amendment, but
Will the gentlewoman please yield?
Thank you for yielding.
I just have to express some concern. We already had a preference earlier for organizations that have exhibited concern about their carbon footprint. And I don't object to the one about veterans, but I worry about getting too many preferences involved here. And Uncle Joe, who's trying to build a widget in his barn, may just fall in the cracks because he doesn't meet any of these preference categories.
I don't particularly oppose this one about transportation. Everyone knows we need improvements in that. But there are so many different areas, I don't want to bog down the SBA in dealing with these requests by having to worry about preference after preference.
So basically I'm issuing a warning here. Let's watch it in the future, and let's make sure we don't add too many preference requirements or it becomes very, very cumbersome.