JOINT PRESS RELEASE

2/07/2007
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Portland, OR -

New Partnership to Help Small Business Bring More R&D Dollars to Oregon

This month the Pacific Northwest Defense Coalition and the Portland State Business Accelerator joined forces to help small Oregon businesses gain more research and development financing. Their first workshop will be held March 25-27 to teach entrepreneurs how to use federal Small Business Innovation and Research (SBIR) grants to fund R&D.

PNDC is an industry coalition that focuses on development for member defense-industry companies. The PSBA is a technology business incubator run by Portland State University that provides space and business development services. Both facilitate collaboration among government, education and the business community to strengthen member companies.

The workshop will be the first of what is expected to be an annual training on the use of SBIRs, as well as ongoing support related to the grants program. The PNDC/PSBA collaboration will actively work with the Oregon Economic and Community Development Department and other federally funded programs to make sure Oregon businesses are aware of and have access to resources. The programs will be open to the general public.

This first workshop is being funded in large part through the OECDD. According to Marian Hammond, OECDD Innovation & Economic Strategies Division manager, the agency identified PNDC as a strategic partner for the agency's efforts to increase Oregon small businesses' ability to successfully obtain SBIR grants. This partnership will leverage the knowledge, networks and resources of an important industry cluster to help provide trainings to the business community, she said. [Comments and copy approval provided by OECDD through Brian Evans 503-229-5224.]

The SBIR training will be taught this year by the Greenwood Consulting Group, a nationally recognized SBIR consultant group. Key to the on-going program will be linking grant seekers with grant writers who are experienced with the requirements of the participating agencies and can guide companies in proposal development, according to the two directors.

The federal SBIR program has been available since 1982 and is an important source of early-stage R&D funding for technology innovations. The total value of SBIR grants was more than $2 billion in FY04. Half of that went to the Department of Defense. Over the last nine years, Oregon has captured an average of 1.3 percent of the total awards for SBIRs and its sister program STTRs (Small Business Technology Transfer grants), according to Hammond.

"We want to increase that percentage," said Brice Barrett, executive director of PNDC. "We see SBIR grants as a key way for companies to finance R&D for business expansion." Barrett heads the 90+ member organization of companies producing products that are used by the defense industry.

The need is even more critical for start-up technology companies that need financing of product development, according to Carol Mason, director of the PSBA. The PSBA is a technology business incubator sponsored by PSU that currently houses 19 start-up technology companies and the PNDC.

"Financing development beyond the concept stage is the first major hurdle for any technology start-up," said Mason. "Angel and venture capital dollars are rarely available at this stage of new-company development, and without R&D dollars, many quality start-ups don't make it to market."

The PSBA houses four companies that funded their R&D with grants from NASA, NIH and other federal agencies. They got those dollars long before they would have been able to get investor groups interested, she said.

If there is strong interest, the two organizations plan additional programs that they hope will significantly increase the level of SBIR funding coming to Oregon companies.

To register for the March workshop, visit: http://www.oregonsbir.org/

Background

The Small Business Innovation Research (SBIR) program was established in 1982. It strives to stimulate technological innovation, increase and strengthen the role of small business in meeting the R&D needs of the federal government and increase commercial application of government sponsored R&D efforts. A related program, the Small Business Technology Transfer Research (STTR) program seeks to stimulate and foster technological innovation through cooperative research and development activities between small businesses and research institutions. Every federal agency with R&D exceeding $100 million or with budgets for outside/extramural research, must, by law, establish a SBIR/STTR program. Approximately 2.5 percent of each agency's extramural R&D budget must be set aside for the SBIR/STTR program. Topics range across a broad spectrum of areas, institutes and needs. Almost 20 federal agencies participate.

The awards are made as grants or contracts, and do not have to be repaid and do not require the sacrifice of equity. The Federal government allows the small business to retain the intellectual property rights to their innovations. For those interested in securing outside investors (angels, venture capitalists, others), SBIR provides early stage funding for the R&D of an innovative product which can be crucial in attracting outside investors to take the product to market.

The Pacific Northwest Defense Coalition was founded in 2005 as a 501(c)6 not-for-profit. Barrett runs the daily operations of the PNDC and works with an 11- member board of directors drawn from the management of the member firms. PNDC facilitates the collaboration among defense-related companies, government and educational institutions. Through its membership program and through relationships with legislators in Oregon and Washington, PNDC connects people to build stronger relationships in the defense industry.

The Portland State Business Accelerator was founded in 2004 and is an off-campus incubator through Portland State University. It currently houses PNDC and 19 emerging technology companies. Its mission is to build strong technology companies for Oregon while strengthening the University's mission to "Let Knowledge Serve the City." The PSBA brings University, government and community business partners together to support the incubation of successful companies.

The Oregon Economic and Community Development Department provides economic, community and cultural enhancement throughout the state. OECDD pursues its mission to advance Oregon's economy by promoting a favorable investment climate; assisting Oregon communities to build capacity for business; and improving the national and global competitiveness of Oregon companies. Visit http://www.oregon4biz.com for more information on OECDD programs and doing business in Oregon.

For more information, contact
Brice Barrett, PNDC, 503-312-3175
Carol Mason, PSBA, 503-725-2313.

Portland State Business Accelerator
503-725-2313
2828 SW Corbett Ave., Suite 100
Portland, OR 97201
cmason@pdx.edu