Washington, D.C.—Nevada Senator Harry Reid released the following statement regarding long-term reauthorization of the successful Small Business Innovation Research Program (SBIR), Democrats third jobs bill of the 112^th Congress, which will be considered on the floor next week:

“Republicans may have promised to drag their feet on every jobs bill we bring to the floor, but Democrats won’t stop fighting to put Americans back to work and get our economy solidly back on its feet. While they’ve been playing politics, we’ve been creating and protecting hundreds of thousands of jobs. Now we’re focused on spurring innovation by the 30 million small businesses that are the lifeblood of our economy.

“The tens of thousands of small businesses that have already participated in the successful Small Business Innovation Research Program have invented everything from the Bradley tank to the electric toothbrush over the last three decades. And they are responsible for nearly 40 percent of the nation’s patents. We need to continue to invest in the small businesses working hard to come up with the next great technological advancement, and give them the long-term stability they need to put Americans back to work.”

###

The Small Business Innovation Research Program Creates Jobs, Stimulates the Economy and Keeps America Competitive.

America’s nearly 30 million small businesses are key to economic growth, job creation and innovation. For nearly three decades, small businesses have used $28 billion in federal innovation investments to expand and hire new workers. After eight short-term reauthorizations, it’s time to give stability to the Small Business Innovation Research (SBIR) program and Small Business Technology Transfer (STTR) program so they can continue to support America’s small businesses.

·         Nearly 30 Million Small Businesses Are Key to Economic and Job Growth. America’s nearly 30 million small businesses are essential to our economic and job growth, representing 99.7% of all U.S. employers and employing more than half of all private sector employees. Small businesses have generated 64% of net new jobs over the last 15 years.

• Established Under President Reagan, SBIR Awards R&D Investments Through 11 Federal Agencies. First established in 1982 under President Ronald Reagan, the Small Business Innovation Research (SBIR) program currently supports small businesses across America through the research and development budgets at 11 federal agencies, including the Department of Defense.

• SBIR / STTR Programs Have Invested More than $28 Billion in America’s Small Businesses. Since their inception the Small Business Innovation Research (SBIR) Program and the Small Business Technology Transfer (STTR) Program have distributed nearly 89,000 investments totaling $28 billion.

• SBIR-Backed Firms Have Been Responsible for 25% of Crucial Innovations. Small businesses produce more than 13 times more patents than large businesses and employ nearly 40 percent of America’s scientists and engineers.  Studies show SBIR-backed firms have been responsible for roughly 25% of the nation’s most crucial innovations over the past decade and account for 38% of America’s patents.

• The SBIR/STTR Reauthorization Act Protects Against Waste, Fraud And Abuse.  S. 493 includes oversight and fraud prevention measures that require the Inspector General of each participating agency to establish fraud detection measures and coordinate with other agencies on information sharing.

• SBIR/STTR Technology Is Used in the B-2 Bomber, First Responder Communications and Electric Toothbrushes. We use SBIR/STTR technology in the military’s Bradley tank, the B-2 Bomber pilot alert system, communication antennas for first responders in disaster zones, vehicles for fire fighters combating wildfires, sensors used to detect brain injuries for high school athletes, and even, inside electric toothbrushes, to name a few.

• The Bipartisan SBIR/STTR Reauthorization Is Strongly Supported By Business Advocates. S. 493 is supported by groups such as the U.S. Chamber of Commerce, the National Federal of Independent Business, the National Small Business Association, BIO and the National Venture Capital Association.

• After Ten Short-Term Extensions, SBIR Needs Long-Term Reauthorization To Ensure Stability. The last long-term authorization of the SBIR program expired in 2008. Since then, the program has been operating under 10 short-term extensions, with the current authorization set to expire in May 2011.  To help small businesses succeed, we must provide continuity to allow these high technology firms to grow and expand.

Number of Investments and Total Investment Amount by State Since 1983