Navy SBIR-STTR National Economic Impact Study: 2000 - 2013 (SBIR / STTR)

Summary

• The Navy SBIR/STTR Phase II program provided nearly $2.3 billion in funding across 2,734 contracts to 1,199 small businesses between FY 2000 and 2013.p.1
• A comprehensive survey achieved a 95 percent effective response rate, showing that 64 percent of completed Phase II contracts resulted in commercial sales.p.1
• Completed Phase II contracts generated $14.2 billion in total sales of new products and services, including $7 billion in direct sales to the U.S. military.p.1
• Nationwide economic output resulting from the program's R&D and subsequent commercial sales reached $44.3 billion.p.1
• The program contributed $22.2 billion in total value added, representing new wealth creation across the national economy.p.1
• Economic activity generated $4.9 billion in total federal, state, and local tax revenues and $14.4 billion in labor income.p.1
• Program-related outcomes supported 14,973 full-time jobs per year with an average annual salary of $68,535.p.1

Key insights

1. The Navy accounts for approximately 12 percent of all federal SBIR/STTR funding and 27 percent of the Department of Defense total.p.3
2. Commercial product and service sales to civilian markets reached nearly $3 billion, representing 21 percent of total program sales.p.14
3. Sales of products and services directly to the U.S. military accounted for 49 percent of total sales, totaling nearly $7 billion.p.14
4. Follow-on non-SBIR/STTR R&D contracts generated nearly $3.5 billion, comprising 25 percent of total commercialization sales.p.15
5. Participating companies received approximately $646 million in outside investment funding directly related to their Navy Phase II innovations.p.18
6. A total of 91 recipient companies were acquired primarily due to technologies developed under Navy SBIR/STTR funding, with total reported acquisitions exceeding $1.8 billion.p.18
7. The single most commercialized Navy Phase II contract generated over $1.2 billion in cumulative sales.p.15
8. The Navy Phase II R&D investment generated an output multiplier of 2.70, meaning each dollar of funding created an additional $1.70 in nationwide economic activity.p.19