California Biomedical Industry - California Healthcare Institute

Small Business AdministrationprogramsGovernment funding to fuel thestate’s biomedical industry alsocomes from the U.S. Small BusinessAdministration’s (SBA) Office ofTechnology. The SBA’s two grantprograms were implemented to increasethe competitiveness of small, hightechnologyfirms.The first, the Small Business InnovationResearch (SBIR) program, providescritical seed capital for biomedicalentrepreneurs and occasionally providesinitial funding for startup companies.Under the SBIR program, federaldepartments and agencies with annualextramural R&D budgets exceeding$100 million must reserve at least 2.5percent of those budgets for awards tosmall U.S. high-tech firms.The second program — the SmallBusiness Technology Transfer (STTR)— reserves 0.30 percent of the funds offederal departments and agencies withannual extramural research budgetsexceeding $1 billion for awards to smallU.S. high-tech firms. These awards aresmaller than the SBIR grants and fundcooperative R&D projects involvingsmall business and a nonprofit researchinstitution.The SBIR and STTR dollars remaincritical for the development of newbiomedical products, especially in thecurrent economic climate. Californiacompanies have been successful inobtaining the highly competitiveawards, and, in 2009 again took thelargest share of the grants. Californiaentities received SBIR and STTR awardstotaling more than $117 million. Thattotal amounted to 27.1 percent of thecollective funds received by the top 10recipient states.Figure 31: 52: Top Top 10 10 recipients recipients of NIH of NIH SBIR SBIR and STTR and STTR Funds ($M) Funds, 2009 ($M)CaliforniaMassachusettsNew YorkMarylandNorth CarolinaPennsylvaniaWashingtonOhioColoradoTexas$20.5$19.3$25.4$24.2$32.2$29.8$38.0$44.1$81.4Source: National Institutes of Health, Office of Extramural ResearchNote: Data excludes R&D contracts and projects funded by the American Recovery and Reinvestment Act.American Recovery and Reinvestment Act fundingCalifornia also was a significant beneficiary of the American Recovery andReinvestment Act (ARRA) grants, many of which were administered through theNIH. Figures 53 and 54 below show the totals and the state’s percentage of thosegrant programs.Figure 53: NIH grants funded by the American Recovery and Reinvestment Actof 2009Recovery ActProjects(FY 2009)Funding(FY 2009)Recovery ActProjects(FY 2010)$117.0Funding(FY 2010)California 1,706 $636,616,123 1,217 $689,513,934Share of National Grants 13.3% 14.6% 13.9% 14.9%Figure 54: NIH grants funded by the American Recovery and ReinvestmentAct of 2009 - Top 10 recipients by funding in FY 2009Recovery Act Projects (FY 2009) Funding (FY 2009)California 1,706 $636,616,123Massachusetts 1,237 $501,767,963New York 1,142 $379,928,579Pennsylvania 812 $278,484,448Texas 670 $213,074,281North Carolina 558 $192,847,747Maryland 478 $172,663,253Washington 388 $170,069,481Illinois 505 $143,930,276Michigan 394 $129,423,91070 | California Biomedical Industry 2011 Report