AdvaMed Champions Congressional Reauthorization of Vital Small Business Investment Programs
WASHINGTON – This week, the Senate and House approved the reauthorization of the Small Business Innovation Research and Small Business Technology Transfer (SBIR/STTR) programs for three years. Since early 2021, AdvaMed and AdvaMed Accel, the division that represents the medtech industry’s small and emerging-growth companies, have been vocal proponents of reauthorizing the programs ahead of their expirations at the end of September.
“Across the medtech industry, small companies are at the forefront of developing new and innovative technologies that improve patient health outcomes,” said Scott Whitaker, AdvaMed President and CEO. “AdvaMed has worked to maintain the availability of the SBIR and STTR programs that offer critical resources for our members to get the next generation of products off the ground. We welcome the news of reauthorization and are grateful for the leadership in the House and Senate for ensuring these programs do not lapse.”
“The federal SBIR/STTR programs are a lifeline for small medtech companies that would otherwise be unable to secure initial funding to advance their innovative ideas in the research and development phase,” said DeChane Dorsey, Executive Director of AdvaMed Accel. “After months of negotiations and advocating on behalf of our small company members, we are pleased to see these vital programs reauthorized.”
Medical technology device development relies on lengthy research and testing. Devices must meet a high bar for safety and effectiveness. Start-ups consisting of a handful of employees cannot sustain paying for months and even years of research and development, and private investors are reluctant to fund testing that might not result in a quickly profitable product. Investors also consider market share and scalability. A product that makes a difference to thousands of patients still might not be attractive enough to investors.
75 percent of AdvaMed’s 450 members are small companies and comprise the AdvaMed Accel division. In a 2021 survey, 89 percent of AdvaMed Accel member respondents reported having applied for SBIR/STTR grants; 31 percent of their applications were rewarded.
Learn more about SBIR/STTR programs.
The SBIR/STTR programs offer highly competitive grants across 11 federal agencies, from the National Science Foundation to the Department of Defense. For more than 40 years, these programs have provided more than 179,000 awards, totaling more than $54 billion, to U.S. small businesses.