Is STTR easier to win than SBIR?

STTR usually attracts fewer applications, so headline success rates can look higher. Reviewers apply the same standard to the science and the commercial case, and STTR adds the burden of proving that the partnership is real and well managed.

Can we apply to both SBIR and STTR with the same project?

You can submit the same technical project to only one of the two in a given cycle at the same agency. You can move between programs across cycles if the work split or PI arrangement changes.

Does STTR affect who owns the intellectual property?

An allocation of rights agreement between the company and the research institution has to be in place before award. It sets out background IP, new IP and licensing terms. Getting this drafted early avoids delays at award stage.

Can our university professor be the principal investigator?

Under STTR, yes. Under SBIR the PI's primary employment must be with the small business during the award, which usually means more than half their time.

Program guide

SBIR vs STTR: which program fits your company

Both programs fund early-stage R&D at US small businesses, and at most agencies they share a solicitation, a budget range and a review process. The difference sits in who performs the work, who employs the principal investigator and whether a research institution is formally part of the project.

SBIR and STTR compared

	SBIR	STTR
Who applies	A for-profit US small business	A for-profit US small business, partnered with a research institution
Research partner	Optional. Subawards allowed within limits	Required. A university, federal lab or non-profit research institution
Work split (Phase I)	At least 2/3 performed by the small business	At least 40% small business, at least 30% research institution
Work split (Phase II)	At least 1/2 performed by the small business	At least 40% small business, at least 30% research institution
Principal investigator	Primary employment must sit with the small business	PI may be employed by the small business or the research institution
Typical Phase I award	$275K to $314K depending on agency	Broadly the same as SBIR at the same agency
Typical Phase II award	$1M to $2M depending on agency	Broadly the same as SBIR at the same agency
IP arrangements	Held by the small business	Governed by an allocation of rights agreement with the institution
Ownership rules	Majority US-owned; some agencies allow VC-backed applicants	Same ownership tests as SBIR

Award ceilings and work-split rules are set per agency and revised each year. Always check the current solicitation before you build a budget.

Choose SBIR when

Your team can do the majority of the technical work in-house.
Your PI is a founder or full-time employee of the company.
You want the simplest possible budget and subaward structure.
Your lab capability is already built and staffed.

Choose STTR when

Core science still sits with a university lab or federal facility.
Your lead scientist holds a faculty position and wants to keep it.
You need specialist equipment or cohorts you cannot access alone.
The company spun out of academic research and the collaboration continues.

How each agency handles the two programs

NSF

NSF runs SBIR and STTR through the same solicitation and Project Pitch process. The review criteria are identical, so the choice is driven purely by where the work sits.

NIH

NIH publishes parallel SBIR and STTR omnibus solicitations. STTR is common for spinouts where the founding lab keeps running the core assay or animal work.

DoD

DoD topics are released per solicitation cycle and STTR topics are a smaller subset. Read each topic carefully because the program is fixed by the topic, not by preference.

DOE and NASA

Both run SBIR and STTR with the same technical topics. STTR budgets need a clean institutional split before submission.

Read the NSF SBIR guide Read the NIH SBIR guide

SBIR vs STTR questions founders ask

Is STTR easier to win than SBIR?: STTR usually attracts fewer applications, so headline success rates can look higher. Reviewers apply the same standard to the science and the commercial case, and STTR adds the burden of proving that the partnership is real and well managed.
Can we apply to both SBIR and STTR with the same project?: You can submit the same technical project to only one of the two in a given cycle at the same agency. You can move between programs across cycles if the work split or PI arrangement changes.
Does STTR affect who owns the intellectual property?: An allocation of rights agreement between the company and the research institution has to be in place before award. It sets out background IP, new IP and licensing terms. Getting this drafted early avoids delays at award stage.
Can our university professor be the principal investigator?: Under STTR, yes. Under SBIR the PI's primary employment must be with the small business during the award, which usually means more than half their time.

Not sure which program your project belongs in?

Book a call with a senior funding consultant and we will map your work split, PI arrangement and best-fit agency in one conversation.

Book Free Consultation See our client wins