The Exploitation of Publicly Funded Technology

In this paper we focus on technology that resulted from R&D projects funded by U.S. Small Business Innovation Research (SBIR) Phase II awards. We ask: Is there evidence that strategic commercial agreements allow foreign firms to exploit the technologies developed through the SBIR program and funded by U.S. taxpayers? Based on descriptive information from Phase II SBIR-funded project data collected by the National Research Council within the National Academies, we conclude that SBIR funds for Phase II projects and the technologies associated with those projects are not, to a pronounced extent, benefiting foreign firms through agreements with SBIR firms or investors. In that sense, there is no evidence that the technologies developed with funds from U.S. taxpayers are, to any significant extent, being exploited by foreign firms through commercial agreements with SBIR firms.