LANSING – In this time of extreme revenue pressure, it is important that government focus on ways to not only live within their means but also to be innovative and entrepreneurial in finding ways to be good public servants. The proposed MEDC SBIR/STTR/NIST-ATP Matching program is a case in point.
SBIR stands for Small Business Innovation Research, ?STTR? for Small Business Technology Transfer and NIST-ATP for the National Institute for Standards and Technology, Advanced Technology Program. These programs provide critically important research and development grants to small business entrepreneurs seeking to develop and, most importantly, commercialize breakthrough technology innovations.
It is not a well known fact in Michigan, but over 75 percent of new Patents are based on publicly funded research. A recent National Research Council review has aptly noted that the SBIR program is extremely effective at accelerating the invention and commercialization of breakthrough technology innovations; resulting in robust economic development. These programs provide multi-millions in federal grant money directly to entrepreneurs (Representative Andy Meisner has aptly referred to entrepreneurs as Michigan?s silver bullet). The MEDC Matching Program will leverage more of these dollars to Michigan, specifically for commercially viable projects.
In a given business venture, these federal R&D grants address the ?technology? risk, leaving other business risks for follow-on investors. Thus, government R&D grants ?prime the pump,? so to speak for cutting-edge entrepreneurial venture creation. In a global economy where technology innovation is a prime competitive advantage, government encouragement of ?Made In The USA? science and innovation is a good national strategy. As an economic development strategy, helping cutting-edge entrepreneurs succeed is a pretty good bet for Michigan.
Valeria Hoag (Managing Director, 21st Century Jobs Fund), is a dedicated, qualified and gifted public servant who has crafted an excellent program with a number of innovative and important features: (a) The program does not require any new taxes – it is funded with the 21st Century Jobs Fund which comes from Tobacco Settlement money.
These funds thus are not available to underwrite state budget deficits nor to offset any taxes but are available to foster entrepreneurial business expansion; (b) It will leverage three-times as much money (typically, $.25 in match funding will yield $1.00 in federal grant funds); (c) Unlike mpost states, Michigan?s program will focus on projects that have commercial merit; (d) Lastly, it will provide money to cutting-edge entrepreneurs ? like T/J Technologies and PicoMetrix – whose aim is to grow a cutting-edge and highly competitive business in Michigan.
It is extremely important to understand that entrepreneurial small businesses which have third-party match funding receive priority of funding under these federal R&D grant programs. Thus, the proposed ?SBIR/STTR/NIST-ATP Matching? program helps Michigan entrepreneurs effectively compete for these precious research dollars and focuses them on projects that have demonstrated commercial potential as well as sound science (the best of all worlds).
Mark Clevey serves as a Commercialization/Business Plan reviewer for the SBIR, STTR and NIST-ATP programs and has received national awards and recognitions for his work with these programs.
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