Federal Research

The Small Business Innovation Development Act of 1982 stressed the benefits of technological innovation and the ability of small businesses to transform research and development results into new products. GAO testified on the commercial trends (primarily sales) of products in the final phase of the Small Business Innovation Research program, which was authorized by the act. This phase of the program is intended to pursue commercial or government applications of program technology. GAO testified that although many program projects have not yet had enough time to reach their full commercial potential, the program is showing success overall. As of July 1991, the program had generated more than $1.1 billion in sales and additional funding for further technical development. In addition, most sales and additional development funding came from the private sector, suggesting that R&D projects funded by the program are achieving a key goal--increasing private sector commercialization. The extent of commercialization varies widely by agency, however, and could be enhanced if more emphasis, particularly by the Defense Department, were placed on increasing private-sector commercialization. This, along with attention to other issues involving company participation in the final phase of the program, could further strengthen the program.