Under SBIR, the Principal Investigator must be primarily employed (>50%) by the small business at award. Under STTR, the PI may instead be primarily employed by the partnering research institution. If the technical brain of your company is a professor who is not leaving their appointment, STTR isn't just an option — it's usually the only compliant structure.
| SBIR | STTR | |
|---|---|---|
| Agencies | 11 | 5 (DoD, NIH, DOE, NASA, NSF) |
| Research-institution partner | Optional | Required (nonprofit university/FFRDC) |
| Work share | Company ≥2/3 (Ph I) | Company ≥40%, institution ≥30% |
| PI employment | Company (>50%) | Company or institution |
| Program size | ~7× larger | Smaller pool, often less competition per topic |
IP first. If the invention was made at the university, the tech-transfer office almost certainly controls it. Get the license (or option) signed before proposing — reviewers and agencies will ask, and STTR requires an IP agreement between company and institution.
Resources second. University software licenses and clusters are typically restricted to academic use; using them for company R&D can contaminate IP and violate license terms. Budget for the company's own tools from day one.
University spinouts usually bring strong theory and thin engineering-tool budgets — student licenses don't cover commercial work, and lab access disappears at graduation. If your spinout needs professional simulation to turn a thesis into a fundable prototype, ask us what evaluation options exist for teams at your stage.
See if you qualify for an Ansys eval + engineering support at no cost How access works →Official sources for this guide: SBIR.gov — STTR tutorial · SBIR.gov — eligibility. Figures change; always confirm on the official page before relying on them.
