The Impact of the Sbir on Creating Entrepreneurial Behavior

The Small Business Innovation Research (SBIR) program was developed in 1982 in response to the American economy losing its ability to compete in the international market. This study investigates how the SBIR program influenced career choices of recipients with respect to commercialization in the forming of a new business venture. Also examined is how recipients of the award influenced others to develop their own commercial enterprises. Questionnaires were mailed to 84 SBIR firms, selected from the 1999 Directory of Small Research and Development Companies of Indiana as well as from recommendations of the directory's publisher, the Indiana University Industrial Research Liaison Program. Findings indicate that scientists and engineers receiving the awards were positively influenced by the SBIR program to start firms; without the SBIR 20 percent of the sample would not have started firms and 40 percent would not have continued their firms. Additionally, colleagues of recipients were also influenced as a result of their interaction with the award recipients.(JSD)