In 1982, through the Small Business Innovation Development Act, the Small Business Innovation Research (SBIR) program was created and implemented across multiple Agencies. It has continued as the Nation’s largest innovation program. SBIR offers competitive awards to stimulate technological innovation among small private-sector businesses while providing government Agencies with new solutions that meet their diverse needs.
The Small Business Innovation Research and the Small Business Technology Transfer programs are both considered small business set-asides and contain sunset provisions. Funds are restricted or set aside exclusively for use by small businesses in both of these initiatives. The Small Business Administration establishes size standards on an industry-by-industry basis using the North American Industry Classification System, or NAICS, codes. The sunset provision is important and provides that the law that brought these programs into effect will cease after a specific date, unless further legislative action is taken to extend the law. For this reason, since the SBIR program first began in 1982, it has periodically been reauthorized.
Learn more here- THE HISTORY OF THE SBIR AND STTR PROGRAMS | SBIR