NWBOC_Certified_Logo-final-01
Return to Press Releases

Federal Agencies Also Suffer Without SBIR/STTR Reauthorization

By Jenny C. Servo, Ph.D.

The failure of Congress to reauthorize the Small Business Innovation Research (SBIR) and the Small Business Technology Transfer (STTR) programs has brought these initiatives to a complete standstill. This adversely affects, not only the small, advanced technology firms, but also the federal agencies which utilize these programs as a resource for needed innovations.

Historically, the Department of Defense (DoD), the Department of Homeland Security (DHS) and the Department of Energy (DOE) release a Phase I Pre-solicitation or solicitation during the first quarter of the Fiscal Year (October 1 – December 31, 2025). These solicitations are currently at risk due to failure to reauthorize the SBIR/STTR programs now, as these programs lapsed on October 1, 2025. Although DoD has multiple Phase I solicitations during the fiscal year, DHS has only one during the first quarter, and DOE has two, neither of which has yet been released. This is a hardship for small businesses that are counting on the opportunity to compete for an SBIR/STTR award from these important programs.

What many Congressional staff don’t understand is that the eleven federal agencies also depend on the SBIR/STTR programs to advance their innovations. This is accomplished through the needs articulated in the solicitations which the agencies themselves prepare. Having access to a ready bastion of small, advanced technology firms that can address national needs is important to the federal agencies and for maintaining U.S. competitiveness. To put this in perspective, in the 1980’s General Abrahamson, the first director of the Strategic Defense Initiative (SDI) Organization is quoted as stating that SDI would require approximately 200 innovations to accomplish its mission. It is often stated that the need for such innovation was a factor that led President Reagan to endorse the Small Business Development Act in 1982. Today, the United States’ federal innovation ecosystem still relies heavily on the nation’s small businesses to address agency needs.

In part, reauthorization is stymied because of two issues (1) the first, relates to opinions regarding frequent, award winners, and (2) the second, the venture capital model. Those that oppose the ability of companies to win frequent awards, assume that these “mills”, prevent new entrants from winning SBIR/STTR awards. However, those making this claim, do not ask to see the agency data on proposals from new applicants to determine if they are competitive. Frequent award winners, win large numbers of awards because of their strengths in realizing technological innovations. Their success is based on merit and the fact that they have demonstrated to their agency customers that they can reliably provide them with innovative solutions in a timely fashion. Just as it would seem foolish to tell Lockheed Martin, you can’t win another award, because you have received too many – it does not make sense to take this stance, with innovative small businesses which have demonstrated their competence.  Ultimately most of these firms, leave the SBIR program through an acquisition.

The second issue holding up SBIR/STTR reauthorization appears to be the desire to insert the venture capital model into this program. However, the beauty of the SBIR/STTR programs is that they attract talented scientists and engineers who are willing to take a personal risk to start their own business. By contrast, venture capital firms wait until technological and management risk are reduced before investing and as the market is beginning to rapidly grow. Venture capital is an option that businesses consider as they mature. However, to meet the objectives of federal agencies, the SBIR/STTR programs should remain funded by the federal agencies which determine their needs, make award decisions based on merit and do not take any equity in the small business.

To address well, the changes in emphasis that every federal agency is experiencing today, the SBIR/STTR programs must be reauthorized immediately, so that federal agencies can proceed with articulating these priorities in solicitations and so that the infrastructure that has been developed to conduct these programs to benefit the U.S. economy can proceed.

Time is of the essence. Congress needs to reauthorize the Small Business Innovation Research (SBIR) and Small Business Technology Transfer programs immediately!

Jenny C. Servo, Ph.D. is the President and Founder of Dawnbreaker, a woman-owned small business located in Rochester, NY which has provided commercialization assistance to SBIR/STTR awardees since 1990.

Email
Twitter
LinkedIn

Stay in the Know with Dawnbreaker®

Receive valuable industry insights such as our Market Snapshots, SBIR/STTR & TABA updates, & webinar announcements.

Stay in the Know

Fusion Energy Overview

Fusion is a potential energy source and occurs when one or more lighter elements combine to form a heavier element, releasing energy in the process. [1] Devices designed to harness this energy are known as fusion reactors. [2]   A future fusion plant could use the heat produced by the fusion reaction to produce steam to drive turbines or generators that produce electricity. [3] For almost a century, scientists around the globe have been looking to recreate and harness the power of fusion energy. [4]  

Tokamak
Source: ITER

There are two commonly pursued technologies to create and control plasma. Magnetic confinement uses strong magnets to contain plasma. A widely used configuration known as a tokamak[5] uses powerful magnets to confine the plasma within a toroidal reaction vessel, with the magnetic fields keeping the plasma away from the walls of the vessel to prevent damage and unintended cooling of the plasma.[6]  

Examples of U.S. companies developing magnetic confinement systems are Commonwealth Fusion Systems, TAE Technologies, Tokamak Energy, Helion Energy, and Thea Energy. Inertial confinement uses high-power lasers or electrical discharges to compress a small capsule of fusion fuel to extreme temperatures and pressures for a short time. This approach is used, for example, in the National Ignition Facility at the U.S. Department of Energy (DOE) Lawrence Livermore National Laboratory. [7] Examples of U.S. companies developing inertial confinement systems are Xcimer Energy, Focused Energy, ZAP Energy, and Shine Technologies. In addition to these methods, several companies such as General Fusion,  are pursuing various other pathways to try to create and control fusion reactions, including a hybrid of both magnetic and inertial confinement approaches. [8]

Various fusion fuels are used to power these pursued pathways. According to the U.S. Department of Energy, once developed, first-generation fusion plants may likely use a combination of abundant deuterium and lithium as fuel. [9] Deuterium, lithium and tritium Deuterium-tritium is a highly studied fusion fuel and a likely basis for the first fusion power plants.[10] Lithium is a critical resource for fusion because of its material properties. Lithium is used to breed tritium, the key fuel for fusion. [11] The rare lithium-6 form of the metal, which makes up only 7.5 per cent of all naturally occurring lithium, is the most efficient for sustaining the fusion process. [12] Li-6 is banned in the U.S. because of the harmful mercury waste it generates. [13] So most fusion power concepts rely on “enriched” lithium, where the Li-6 content has been boosted. [14]

Several companies are investing in efforts aimed at commercializing fusion energy. [15] Many of these companies are startups that have raised over $100 million in the past few years. [16]  The global fusion energy market size is projected to reach $611.8 billion by 2034, expanding at a CAGR of 5.56% from 2025 to 2034. [17] 

Current State - Projections of the time to putting Fusion Energy on the Grid

As of October 2025, fusion reactors remain pre-commercial, with no system yet producing net energy. Fusion energy stakeholders provide varying timelines as to when fusion energy will become technically feasible as an energy source for the electrical grid and when it will become commercially viable.  Projections range from 10 years to several decades in the future. [18]   Some companies are claiming that they will achieve commercial fusion energy in the next few years[19] while other stakeholders and experts said fusion energy will take more than 20 years. The Fusion Industry Association reported that many commercial companies predict fusion industry will be commercially viable in the 2030’s time frame. [19] 

Source: The Global Fusion Industry in 2025—Fusion Industry Association

Other stakeholders and experts believe fusion energy might put electricity on the grid in 10 to 20 years, however, significant resources are required to do so.[20] The Figure below illustrates commercialization risks that fusion energy will face on the road to commercial deployment. According to the U.S. Department of Energy, the aspirational timeline as shown is strongly dependent on the level of both public and private investments. [21]

Commercialization risks for fusion

Source. U.S. Department of Energy, Fusion Energy Strategy 2024

Download the Dawnbreaker® OTA Report

Click below to download a copy of the Dawnbreaker® OTA Report. 

Download Report

DoD Transition Information Packet (TIP)®

The Transition Information Packet (TIP) is a market research report specifically developed for small businesses working with the Department of Defense.

Request TIP Report

Customized Market Research (CMR)®

Filling in the gaps in your commercialization strategy….

The CMR provides our team with the greatest flexibility in addressing gaps in the information you need to refine your commercialization strategy. Based strictly on secondary literature, the market researcher can look for information that will help you understand changes in government regulations, market dynamics, emerging solutions, sources of funding, points of contact and other challenges you pose. Based on the information gathered, a business strategist will add comments throughout regarding the implications of the information for your strategy.

Request Information

LICA Licensee Analysis®

Who will take the best care of your baby?

You’ve done a great job with your R&D. You’ve been careful to protect your intellectual property – but those next steps to bring the product to market seem out of reach. There’s too much competition, scale up would be too expensive – so you’ve decided to license-out your intellectual property. The challenge before you is to find the best licensee to bring your baby to market. Let us help you. We will profile organizations that frequently cite your patents and dig deeper to determine their financial health, technology and market synergies, and experience with licensing-in.

Request Information

Commercial Potential Assessment (CPA)

Be wary of big numbers!

You’ve done a great job with your R&D. You’ve been careful to protect your intellectual property – but those next steps to bring the product to market seem out of reach. There’s too much competition, scale up would be too expensive – so you’ve decided to license-out your intellectual property. The challenge before you is to find the best licensee to bring your baby to market. Let us help you. We will profile organizations that frequently cite your patents and dig deeper to determine their financial health, technology and market synergies, and experience with licensing-in.

Request Information

Competitor Analysis

Your customers know your competitors! Do you?

Maybe you believe that you don’t have any competition, but your customers know better! Their needs are being addressed now – perhaps not as well, but if there is a need, someone is providing a solution. Learn about the competition and be prepared to differentiate your solution from that of others. Dawnbreaker’s competitor analysis contrasts your competition on specifications, performance and price. Armed with this information we can help you create a compelling value proposition.

Request Competitor Analysis

Developing Network Contacts (DevNC)

When you need to reach out...

There are times when you need to reach out to others – whether you are looking for potential customers, potential partners, or potential investors. But who should you call…and how do you address your fear of contacting them. The DevNC is a unique market research tool designed to provide you with between 25 and 30 Points of Contact (PoC). With each POC, information is included that provides insight about the person’s role. Depending on their position, other information commonly included relates to their background, articles that they have written, conference presentations and other pertinent information. This type of information enables you to customize your correspondence. Contact information is also included  – typically LinkedIn, email and phone number.

Request DEVNC Report

We are in the process of updating the Energy Portal

Please check back soon for access to our updated Energy Portal.