Baird Fights to Increase Access to Research and Development Programs for America's Small Businesses

Press Release

Baird Fights to Increase Access to Research and Development Programs for America's Small Businesses

In an effort to expand companies' access to federally-funded science and technology programs, Congressman Brian Baird (WA-03) yesterday cosponsored legislation that would break down barriers currently keeping some capital-backed small businesses from conducting innovative research and creating jobs.

The bill, the Science and Technology Innovation Act of 2008, introduced by Chairman of the Subcommittee on Technology and Innovation, David Wu (OR-01), would allow small companies backed by venture capitalists to become eligible for the Small Business Innovation Research (SBIR) program.

In 2001, the Small Business Administration (SBA) ruled that companies receiving more than 51 percent of their financial backing from venture capitalists were excluded from the Small Business Innovation Research (SBIR) program. Since that time, Rep. Baird has been fighting to repeal this provision that keeps many small businesses from receiving critical research and development program funding.

"Many of America's small businesses are backed by venture capitalists and could not successfully conduct an array of innovative, life-saving research and development programs without this funding," said Rep. Baird, Chairman of the Research and Science Education Committee. "This legislation will help break down barriers to the SBIR program and ensure that more small businesses have access to federal funding that will ultimately stimulate job creation and economic growth."

Rep. Baird has long-supported changing that rule on the grounds that the 2001 SBIR ruling conflicts with the original intent of the law; SBIR was established in 1982 to encourage small businesses to explore their technological and commercial potential, and to enable them to compete with larger businesses.

Through the SBIR program, the Small Business Administration ensures that the nation's small, high-tech, innovative businesses are a significant part of the federal government's research and development efforts. Eleven federal departments participate in the SBIR program.

The Congressman originally became interested in SBIR reform after talking with nLight, a venture capital-backed small business innovator in his congressional district that was deemed ineligible for SBIR grant funds. Vancouver-based nLight manufactures high-power semiconductor lasers that have medical and defense applications.

In 2005, Rep. Baird cosponsored the Save America's Biotechnology Innovative Research Act (SABIR), in an effort to repeal this 2001 provision that stifles important research and development from being conducted by venture capital-backed small business innovators.

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