The Small Business Innovation Research (SBIR) program was established in 1982 by the Small Business Innovation Development Act to increase the participation of small innovative companies in federally funded R&D. In establishing the program, Congress found that technological innovation plays an important role in job creation, productivity improvements, and U.S. competitiveness; that small businesses are among the most cost-effective performers of R&D and particularly capable of bringing R&D results to market in the form of new products; and that despite the role of small businesses as the principal source of significant innovations in the Nation, the vast majority of federally funded R&D is performed by large businesses, universities, and federal laboratories. This book provides background and examines issues in the SBIR and small business technology transfer programs.