Biomedical Academic Entrepreneurship through the SBIR Program

Working Paper: NBER ID: w11450

Authors: Andrew A. Toole; Dirk Czarnitzki

Abstract: This paper considers the U.S. Small Business Innovation research (SBIR) program as a policy fostering academic entrepreneurship. We highlight two main characteristics of the program that make it attractive as an entrepreneurship policy: early-stage financing and scientist involvement in commercialization. Using unique data on NIH supported biomedical researchers, we trace the incidence of biomedical entrepreneurship through SBIR and describe some of the characteristics of these individuals. To explore the importance of early-stage financing and scientist involvement, we complement our individual level data with information on scientist-linked and non-linked SBIR firms. Our results show that the SBIR program is being used as a commercialization channel by academic scientists. Moreover, we find that the firms associated with these scientists perform significantly better than other non-linked SBIR firms in terms of follow-on venture capital funding, SBIR program completion, and patenting.

Keywords: SBIR program; academic entrepreneurship; venture capital; biomedical research

JEL Codes: O38; O31; G38; M13; C25

Causal Claims

Cause	Effect
SBIR program (O38)	commercialization outcomes (F61)
Participation in SBIR program (L26)	likelihood of obtaining follow-on venture capital funding (G24)
Academic entrepreneur (M13)	firm performance metrics (L25)
Star scientists (B31)	firm outcomes (G32)
Presence of academic entrepreneur (M13)	likelihood of receiving follow-on venture capital funding (G24)
Completion of SBIR program (O38)	likelihood of follow-on venture capital funding (G24)
Academic entrepreneurs linked to SBIR firms (M13)	venture capital investment (G24)
Academic entrepreneurs linked to SBIR firms (M13)	program completion rates (I21)
Academic entrepreneurs linked to SBIR firms (M13)	patenting activity (O34)