A U.S. Small Business Administration seed fund that has helped a few national technology giants, as well as dozens of Minnesota companies get traction in their early years, is coming to town for a visit.
The SBA's Small Business Innovation Research (SBIR) and Small Business Technology Transfer programs together invest about $2.5 billion annually and have benefited about 150 Minnesota science-and-technology based companies to the tune of about $600 million in research-and-development funding since 1983.
"I would like to see more companies participate," said Pat Dillon of the Minnesota High Tech Association, which coordinates the Minnesota SBIR work. "This is important and it's critical to supporting high-risk, high-payoff research that has the potential for commercialization. This helps to support the ecosystem and some R&D for these small companies.
"And we, as a state, get back much less in tax dollars than we send to Washington, D.C. Quality research proposals bring some money back here. And I'm a big proponent of projects that also have some academic involvement."
Dillon said the $600 million invested in fledgling Minnesota firms has resulted in more than $1.5 billion in economic output in the state and nearly 7,800 high-paying jobs. The small firms often license technology developed by the University of Minnesota, Mayo Clinic and other research hubs.
"It's a hard story to tell sometimes," said Dillon. "It's such a unique specialized program that requires a very talented, scientific team along with a company that has the desire and willingness to learn how to compete and win federal research dollars.
"Some companies don't want to make that leap. Only about 15 percent of the [applicants] get funded. And we work with these companies."
Big companies such as Qualcomm, Symantec and iRobot have benefited from SBIR investments in their salad days. At least two Minnesota firms that received SBIR grants eventually grew to be publicly owned companies: NVE Corp. and SurModics.
