The ocean economy is one of the world’s largest and fastest-growing frontiers. As it expands, so does the need for new technology, innovation, and practical applications. Yet, persistent underinvestment means marine innovators face a longer, riskier path to market than necessary. Harsh operating environments, complex domestic and international regulations, and unpredictable demand often stretch technology development timelines to a decade or more.
That’s where the U.S. Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs come in. These federal initiatives, together known as America’s Seed Fund, help small businesses turn bold ideas into real-world solutions. For ocean technology, they’ve been a quiet but powerful catalyst for decades.
With current authorization of these programs set to expire in September 2025, lawmakers are debating whether to extend them as-is, reform them for speed and inclusivity, or add new commercialization tools. The choices Congress makes in the coming months will shape how quickly, and how widely, ocean innovations reach the market.
What Are SBIR and STTR?
SBIR and STTR are programs that set aside a portion of federal research and development (R&D) budgets exclusively for small businesses. Since their creation (SBIR in 1982, STTR in 1992), they’ve provided over $4 billion annually in “non-dilutive funding,” support that doesn’t require giving up ownership or equity. Unlike traditional grants, these programs are designed to help small companies compete, innovate, and commercialize.
The impact has been remarkable: SBIR-backed companies deliver an estimated 22:1 return on every federal dollar invested. Unsurprisingly, other countries have since adopted similar models.
For marine technology companies, these programs fund critical innovations such as:
- Next-generation sensors
- Autonomous vehicles
- Artificial Intelligence and Machine Learning applications
- Data and predictive analytics tools
Simply put, these programs support projects that may be too risky for government labs, but are exactly the bold solutions needed to tackle big ocean challenges. .
Why They Matter to Marine Tech
Many major ocean technology breakthroughs trace their roots to SBIR and STTR funding. The Navy, NOAA, and other agencies regularly highlight these successes. These programs don’t just fund prototypes—they build capacity, credibility, and connections. Winning an award can open doors to partnerships with federal agencies, investors, and global markets.
For the ocean community, where environmental impact and national security are inherently connected, SBIR and STTR have proven to be essential catalysts of dual-use innovation, public-private partnerships, and economic growth.
How to Compete
If you’re new to SBIR/STTR, but interested in applying, here’s a quick orientation:
Find the right fit: Each participating agency (NOAA, Navy, NSF, DOE, and others) publishes R&D topics tied to their mission. Marine technology firms should watch for topics linked to ocean monitoring, security, renewable energy, and resilience.
Look for partners: Both SBIR and STTR support companies partnering with universities and non-profit research institutions – for SBIR partnership is optional, for STTR it is required. Partnership can be a key element of proposal success, allowing small companies to access specialized equipment, research infrastructure, and a motivated student/postdoc workforce.
Start small: Most companies begin with a Phase I award ($100K–$315K). The goal is to prove feasibility and potential. You’ll need strong technical merit, a clear work plan, and a vision for impact.
Build momentum: Successful Phase I projects can move to Phase II, unlocking $1M+ for scaling and validation. Here, agencies want to see results, partnerships, and readiness for market.
Think ahead: The most competitive applications show reviewers not only what you’ll build but where it’s going. Agencies want to see a plausible pathway to commercialization, whether through private investment, licensing, or government adoption. For marine technology, that might mean forecasting demand and market potential from the Ocean Enterprise, fisheries, shipping, or defense sectors.
Leverage support: You don’t have to go it alone. Universities, incubators, accelerators, state agencies, and professional societies offer workshops and technical assistance. Tapping these resources can help turn a promising idea into a funded proposal.
Policy in Motion
SBIR and STTR have bipartisan support, but both are up for reauthorization by September 30, 2025. Lawmakers are considering several options, ranging from no-change extensions to significant reforms.
- S.1573 / H.R.3169 – SBIR/STTR Reauthorization Act of 2025: Extends programs for seven years, increases funding, and adds entrepreneurial fellowships and reporting requirements.
- S.853 / H.R.4777 – INNOVATE Act: Modernizes the process, cutting award cycles nearly in half. Expands outreach to underrepresented businesses and strengthens commercialization milestones.
- H.R.4842 – SBIR Commercialization Improvement Act: Focuses on bridging the “valley of death” between R&D and market adoption, with bridge funding and expanded business services.
- Other policy proposals: From boosting transparency (H.R.5001) to rural outreach (H.R.1590) to modernizing databases (H.R.3953).
Across the bills, the themes proposed by legislators are clear: strengthen commercialization pathways, expand access, tighten security, and increase accountability. For marine innovators, these reforms could mean faster processing, stronger support, expanded funding, and more opportunities to scale ocean technologies into real-world impact.
Call to Action
As Congress debates reauthorization, everyone in the marine technology community has a role to play:
- Companies: Explore prior SBIR/STTR success stories, watch for annual agency priorities for new funding, and develop a plan to compete. This funding is designed to help you innovate and succeed. Don’t let others set the pace, position yourself to lead.
- Stakeholders: Advocate for strong reauthorization that keeps the programs robust and accessible. The SBIR/STTR programs are a shining global example of the role public investment can play in growing private enterprise.
- Policymakers: Invest in ocean innovation as an important component of national innovation. SBIR/STTR are key to developing next generation environmental, defense, and scientific technologies and keeping U.S. companies at the forefront of our growing marine technology ecosystem. With a historical return of 22:1, investments in SBIR/STTR are both good policy and good business.
The continued growth of our ocean economy depends on the successful development and commercialization of innovative ideas supported by patient and risk-tolerant investment. SBIR and STTR have proven for more than four decades that targeted public investment, free from equity restrictions, can successfully catalyze private sector growth, accelerate commercialization, and deliver meaningful national benefit.
As Congress weighs reauthorization, it’s important to emphasize that these programs are not just good policy—they are an incredible investment to build the resilient ocean economy we all depend on.
Authors:
Chris Ostrander, CEO, Marine Technology Society
Emily Patrolia, CEO, ESP Advisors
Austen Stovall, Senior Manager, ESP Advisors
The views and opinions expressed in this work are solely those of the authors and do not necessarily reflect the official policy or position of any organization, institution, or individual associated with the authors. The authors acknowledge that generative AI was used to refine the original text for conciseness and clarity.
