SBIR/STTR Best Practices Faculty Innovators

Supporting Innovation, Thoughtfully and Responsibly

Office of the Vice Provost for Research + Scholarship

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Purpose

The University of Miami encourages innovation, commercialization, and startup formation, that translate discoveries into products and services to benefit society. Federal agencies provide non-dilutive funding for startup companies through programs such as Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) to advance promising technologies. This guidance is intended to support investigators in pursuing these opportunities thoughtfully, responsibly, and successfully.

SBIR/STTR Programs

SBIR and STTR programs provide equity-free, non-dilutive early-stage funding to derisk new technologies, thereby increasing the likelihood of real-world implementation. For the STTR program, the small company must subaward a portion of the scope of work to a higher education institution.

Separate University and Company Activities

University and company responsibilities and scopes of work should remain distinct. Clear separation protects intellectual property, research integrity, clarifies accountability, reduces compliance risk, and demonstrates appropriate stewardship of sponsor funds. All related interests must be disclosed and reviewed, and any identified conflicts managed in accordance with University policies. To avoid conflicts of commitment, faculty responsibilities to the University and the company must remain distinct and may not overlap.

University Intellectual Property

It is essential to engage Office of Technology Transfer early regarding the use of any inventions, software, data, materials, etc. in an SBIR/STTR grant proposal. Since the small company is receiving the federal funding, a licensing agreement for any University of Miami intellectual property, data, software, etc. will need to be executed prior to receipt of funds.

Disclose Financial Interests Early

Equity ownership, founder status, consulting arrangements, advisory roles, and other financial, obligatory, or commercial interests should be disclosed via the UDisclose System prior to proposal submission and reviewed appropriately. All interests should be updated within 30 days of any changes, especially those related to SBIR/STTR proposals.

Manage Effort and Commitments

Thoughtfully evaluate sponsored research, teaching, clinical, administrative, consulting, and startup obligations before committing effort to ensure adequate capacity, avoid conflicts of commitment, and maintain appropriate separation between University and company activities.

Separate PI Roles

An individual should not serve as PI for both the company and the University on the same SBIR/STTR project. Independent leadership promotes transparency, accountability, and sponsor confidence.

Use Subawards Strategically

Subawards establish scope, effort, responsibilities, intellectual property provisions, and financial accountability while preserving institutional independence.

Common Causes of Delay

Undisclosed interests, unclear intellectual property ownership, overcommitment, and late institutional reviews frequently contribute to delays.

Faculty Manual & Policy References

Faculty should consult the University Faculty Manual and applicable institutional policies governing consulting, conflicts, intellectual property, and entrepreneurial activities.

Supporting Successful Commercialization

The goal is not to create barriers to commercialization. Rather, these practices provide a proactive framework that supports responsible entrepreneurship, protects discoveries, and enables successful commercialization.

Applicable University Resources

FAQ

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  • May UM submit an application for an SBIR and STTR contract or grant?

    No. Although many SBIR/STTR applications include subawards to universities, under federal regulations, only small business concerns (SBCs) may apply for SBIR and STTR funding. STTR guidelines require the SBC to formally collaborate with a University or non-profit research institution. For SBIRs, this collaboration is optional.

  • How can UM faculty, staff and postdoctoral scholars, and students participate in SBIR and STTR awards?

    Typically, this is done by conducting research at UM under a subaward from a small business that has received an SBIR or STTR award. ORA staff can assist UM PIs in completing and submitting paperwork needed to initiate the subaward application and contracting process.

    Plans for proposed research to be conducted at UM under an SBIR or STTR subaward from a SBC must be reviewed by appropriate department chair and academic dean (Gables and RSMAS) before subaward proposal materials are forwarded to ORA. This review is intended to ensure that the proposed work (a) has scientific merit, (b) constitutes a good use of UM research facilities, (c) will not compromise the PI’s academic responsibilities, (d) is for a unique and specific scope of work distinct from research funded by other outside entities, (e) is for work that does not overlap with the investigator’s other research responsibilities, and (f) reflects full cost recovery (direct and indirect), including the PI’s time, in the project budget.

    The UM Faculty Manual addresses outside professional activities specific to faculty working with outside companies as consultants. From a COI and conflict of commitment perspective, it is best for UM personnel to act either as a consultant to the SBC on grant-related activities, or as a researcher on a subaward to UM, but not both. The nature of the work performed defines whether someone can act as a consultant or as a researcher on a subaward, as defined in the Uniform Guidance.

  • If a UM employee establishes a SBC or is an equity holder within a SBC, can the SBC apply for an SBIR or STTR award while the employee continues to work at UM?

    Yes, but there are some key points to keep in mind. Faculty may not hold a full-time appointment at UM and concurrently serve as the Principal Investigator (PI) of an SBIR or STTR grant for a company. In general, the PI for the SBC should not be a UM employee. The PI for the company and the PI for the UM subaward must be separate individuals. See additional discussion below. Work performed by the SBC cannot occur in UM’s facilities.

  • Can the PI of a UM subaward under an SBIR or STTR sit on the scientific advisory board (SAB) or board of directors (BOD) of the company that applied for and received the SBIR or STTR award?

    Yes. Faculty may engage in these types of activities, subject to the time limits and reporting requirements of the Faculty Manual, and the outcome of review by the Conflict of Interest Review Committee (Applicable to those cases in which the investigator has a financial interest in the company that has applied for and received the grant).

  • Can a full-time UM employee serve as the PI for the SBC on SBIR or STTR proposals?

    In general, no. Under federal SBIR guidelines, the small business applicant must be the PI’s primary employer by the time an award is made and must remain the PI’s primary employer for the duration of the project period. Although STTR program guidelines permit University employees to serve as the small business applicant’s PI, submission of an application for research support through any organization other than UM requires an exception to the UM policy. Typically, exceptions have been made when the faculty member agrees to reduce his/her employment at UM or take a temporary leave (part time or full time) 3 from UM to conduct research as the SBC PI. Please note that the conduct of research is generally not considered the kind of outside professional activity allowed under the UM Faculty Manual. These requests for exceptions should be directed to the Vice Provost for Research.

  • Can a UM employee serve simultaneously as the PI for an SBC and PI or a co-investigator on the UM subaward?

    In general, no. SBIR and STTR funding mechanisms involve a primary grant to the small business concern and a subaward to the University. Thus, there are two PIs: one is PI for the SBC; and one is PI for UM. Typically, the same individual may not serve as both. For example, if you will serve as the SBC PI, then you may serve as a co-investigator on the UM subaward, but you may not serve as the PI on the UM subaward. If you will be an investigator on both the primary award to the small business concern and the University subaward, then you must disclose and manage the COI. The COI Committee advises that the tasks conducted at the SBC and at UM should be clearly distinguishable from each other. Any UM employees compensated through the subaward to UM may not receive compensation for the same task from the SBC. The COI must be managed prior to the University’s execution of the subaward.

  • Can students work for SBCs in which their UM supervisors have financial interests while they are enrolled at UM?

    No.

  • Can UM staff or non-faculty academic appointees take on outside responsibilities for a small business SBIR or STTR applicant?

    Per UM policies and principles, including Personnel Policies for Staff Members/Conflict of Interest, nonfaculty employees (such as staff and appointees in the research series) are not permitted to engage in activities that create COIs between their UM responsibilities and other interests or obligations. Additionally, outside employment should not interfere with the performance of employees’ UM duties. UM employees must not use UM resources (i.e., employee time or effort, or resources, including computers or equipment) to write an STTR or SBIR application or perform any work on behalf of an SBC. The University policies and principles prohibit the use of University resources without appropriate remuneration and agreement. The writing of an SBIR or STTR grant application and any tasks associated with administering the SBIR/STTR award and administering the subaward on behalf of the SBC must be conducted using the SBC’s resources, personnel, time and effort.

  • Does an SBC that is applying for an SBIR/STTR award need a license from UM for intellectual property that will be used in the research?

    The SBC must contact UM’s Office of Technology Transfer before submitting its proposal to discuss the availability of the intellectual property and whether an option or license is needed. Doing so may prevent potential claims of intellectual property infringement resulting from the SBC’s use of University-owned intellectual property under the SBIR-STTR award.

  • Can UM accept a subaward in situations where the research will take place in the lab of a University employee who has a management role, an equity stake, or who is otherwise compensated by the SBC receiving the SBIR or STTR award?

    Probably. However, these situations are subject to review by the faculty Conflict of Interest Review Committee before the University can accept the research support. If the Conflict of Interest Review Committee determines that the situation creates a COI, it will try to find ways of managing the COI. The 4 Vice Provost for Research and the Conflict of Interest Review Committee Chair are available to confer about specific situations prior to formal committee review

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