Federal Research

To compete successfully in a global economy, the United States depends heavily on technological innovation through research and development. Because small business is seen as a principal source of innovation, the Small Business Innovation Development program was established in 1982 to strengthen the research and development role of small, innovative companies. Congress reauthorized the program in 1992 and will have doubled the program's funding by fiscal year 1997. GAO testified that so far, the quality of the research proposals appears to have kept pace with the program's expansion. It is too soon, however, to make a conclusive judgement about the long-term quality of research proposals because the major increases in program funding have not yet occurred. None of the five agencies the provide more than 90 percent of program funding has implemented the provision dealing with technical assistance, and future implementation remains uncertain. Duplicative funding has become a problem.