Participation in SBIR and STTR Projects

Faculty participation in Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) projects can offer valuable opportunities for innovation and collaboration with small businesses. Further, participation in SBIR/STTR activities involving companies in which faculty have interest may be permitted when appropriately managed.  As an institution that values partnership with corporate partners, Kent State University (KSU) strives to be responsive and flexible with regards to SBIR/STTR proposal requests. University participation in these types of projects, however, requires a base level of oversight, review, and approval before Kent State can agree to engage in a project.  

Frequently, requests to collaborate on SBIR/STTR proposals are submitted to the Office of Sponsored Programs (OSP) with very tight deadlines that: 

  • do not meet KSU proposal submission policies;  

  •  lack the details we need to fully understand the opportunity and our ability to participate; and  

  • have underdeveloped/unrealistic budget assumptions that do not incorporate all costs (e.g. fringe benefits or F&A).  

While we may be able to sign off on proposal requirements at time of submission, if terms and conditions cannot be reasonably met at the point of award, KSU will not be able to enter into a subaward agreement. It is important that we are transparent with our external partners about this matter, as it can introduce some risk or uncertainty.   

Aligned with KSU’s commitment to responsiveness, we have developed pre-approved agreement templates, including Non-Disclosure Agreements (NDA), Teaming Agreements and Allocation of Rights documents, which are often required for these proposals. Utilizing these templates can significantly speed up the proposal preparation process. In addition, active and open communication with both faculty and external partners about university processes and participation requirements ensures that all parties are well-prepared for KSU’s involvement.

Guidance for Faculty planning to participate in SBIR or STTR projects

  • As researchers are considering participation in an SBIR/STTR project, they should: 

    • Consult with academic leadership and university administration regarding any areas of concern or to discuss specifics of the opportunity. 

    • Review relevant University policies including on outside employment, consulting, leaves of absence, and conflicts of interest. 

  • As with any grant, the PI is responsible for the design, conduct and reporting of research.  

  • SBIR and STTR grants require that there be an identified PI at the primary award side (small business concern) and another PI for the sub-awardee (KSU).  

  • Full time employees of KSU are expected to fulfill their institutional responsibilities consistent with University workload, outside activity, and effort reporting policies. Faculty participation as PI on an SBIR or STTR award must comply with applicable sponsor eligibility requirements, effort requirements, University leave policies, and approved conflict management plans.  A University employee may not simultaneously serve in dual PI roles where prohibited by sponsor requirements or where such roles create unmanaged conflicts of interest or commitment. 

  • Faculty seeking to satisfy SBIR primary employment requirements through a leave of absence, reduced appointment, or other approved arrangement should coordinate with department/academic leadership and Sponsored Programs, and should consider conflict of interest management needs, if applicable, in advance of proposal submission. 

  • Faculty with a financial interest in the small business concern may serve as the PI on the sub-award to the University from the small business concern only if appropriate Conflict of Interest or Commitment Management Plan is in place. 

    • Participation in SBIR/STTR projects may create conflicts of interest or commitment, especially when a faculty member has a financial, ownership or leadership role/interest in the small business concern (SBC) and will participate in related research. 

    • If there is a conflict, KSU students, graduate students or post-doctoral fellows working under the conflicted faculty member’s direction on the subcontract to the University are only to work on the University’s scope of work and would be fully informed of the conflict of interest of the PI. Further, the PI on the sub-award to the University should not be a subordinate of a conflicted faculty member.

    • Potential conflicts include: 

      • Use of University facilities  equipment, personnel, or other resources by a company must occur pursuant to appropriate institutional agreements and applicable reimbursement policies. 

      • Using the University’s nonprofit status to advantage a for-profit entity.

      • Conducting research in a way that prioritizes company success over scientific integrity. 

    • KSU employees should work closely with University administrators to ensure compliance with policies on conflicts of interest, outside employment, and use of University resources. 

SBIR or STTR Principal Investigator (PI) Requirements

SBIR Projects 

  • The small business must be the primary employer of the PI during the award. 

  • Faculty with a full-time University appointment may not serve as an SBIR PI unless they take an approved full or partial leave of absence. 

STTR Projects 

  • The PI may be employed by either the University or the small business. 

  • When a University employee serves as the lead or contact PI, the SBC must also name a PI for its portion of the project. 

  • A University employee cannot serve as both the University PI and the SBC PI. 

Minimum Criteria for KSU to Move Forward with an SBIR or STTR Proposal

Before we would being review of a proposal, Kent State University would expect that the industry partner has:  

  • An identified SBIR or STTR funding opportunity 

  • An identified KSU Principal Investigator (PI) who is willing and able to actively participate in the proposed project and who: 

    • Develops an appropriate scope of work with the industry collaborators and provides a copy to OSP to aid in budget development. 

    • Ensures that KSU intellectual property (IP) is protected, and appropriate protections are in place. 

    • Acknowledges that the Office of Sponsored Programs (OSP) has less opportunity to provide support for and oversight over last-minute proposals. 

Kent State University also expects that the industry partner accepts that: 

  • To the extent practicable and consistent with sponsor requirements, the University prefers that its portion of the project remain aligned with fundamental research principles and institutional publication standards. 

  • KSU cannot participate in a (funded) project if the university is unable to agree to the terms and conditions of the subcontract. 

  • Federal funds awarded to the University are used only for the University’s scope of work and cannot be used for company activities. 

  • Faculty participation with the small business concern, including consulting, scientific advisory, founder, investigator, or leadership roles, may be permitted subject to applicable sponsor requirements, University policies, approved conflict of interest/conflict of commitment management plans, and appropriate separation of University and company activities. 

  • University researchers retain the right to publish research results subject to reasonable review periods for protection of confidential information and intellectual property. 

  • Student participation in SBIR/STTR-related research must remain educationally appropriate and consistent with University academic policies. 

Finally, the university expects that both KSU PI and industry partner have realistic timing expectations 

  • The University recognizes that SBIR/STTR opportunities often involve compressed timelines and will work collaboratively with faculty and company partners to facilitate participation where feasible. 

Proposal and Award Procedures

Before submitting an SBIR or STTR proposal that involves the University: 

  • A formal agreement between the University and the SBC must be in place. 

  • The University PI must route the complete proposal through Sponsored Programs for internal review and approval. 

  • University employees involved with the project must disclose all related financial interests. 

  • A signed IP agreement may be required before submission to define ownership and rights to research results and inventions. 

  • Nothing in this guidance is intended to alter ownership of intellectual property, data, or materials developed independently by the small business concern outside the University scope of work. 

During the project: 

  • There should be clear separation between University activities and company activities, including personnel, facilities, and funds. 

  • University personnel paid through an SBIR/STTR subcontract cannot receive direct compensation from the SBC for the same grant. 

  • SBC personnel funded by the SBC cannot be paid through a University subaward for the same grant. 

  • SBC research cannot take place on University property without an executed agreement (e.g. facility or service agreement). 

  • University employees may only perform SBC work if directly paid by the SBC and in compliance with University HR policies on outside employment. 

  • University staff will not manage administrative tasks (purchases, reimbursements, travel, etc.) for the SBC’s portion of the grant. 

  • All University work must be conducted under an executed agreement that clearly outlines the scope of work and deliverables. Additional agreements (e.g. NDA, MOU, or IP agreement) may also be required. 

  • All intellectual property conceived or first actually reduced to practice under University-administered research activities must be disclosed in accordance with University intellectual property policies. 

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