News Summary
The impending expiration of the Small Business Innovation Research (SBIR) program threatens New York’s biotech sector, vital for early-stage research funding. Home to over 117,000 bioscience jobs and vital research institutions, New York has seen significant growth in bioscience employment and funding. Advocates urge Congress to reauthorize the program to maintain economic growth and protect innovation in the state.
New York, NY – The Small Business Innovation Research (SBIR) program is set to expire on September 30, 2023, potentially jeopardizing New York’s burgeoning biotech sector. This program is essential for funding early-stage biotech research and innovation, and its expiration could result in significant losses for the state’s economic growth.
New York is home to over 117,000 bioscience jobs and ranks as a leading biotech hub, thanks to its world-class research institutions and vibrant startup ecosystem. In fiscal year 2023, institutions in New York secured $3.6 billion in National Institutes of Health (NIH) funding, placing the state second in the nation for total NIH funding. Additionally, bioscience employment in New York has grown by over 10% since 2019, with average wages exceeding $138,000. Between 2019 and 2023, bioscience firms in the state also raised over $25 billion in venture capital, further establishing New York as a center for innovation and development in the biotech field.
The SBIR program, established in 1982 through the Small Business Innovation Development Act, was designed to connect federal research with private sector innovation. It is the largest federal innovation program focused on early-stage research and development (R&D), supporting small enterprises in creating innovative technologies. Twelve federal agencies participate in the SBIR program, while five agencies are involved in the concurrent Small Business Technology Transfer (STTR) program, which encourages collaborations between small businesses and nonprofit research institutions. Both programs are intended to provide competitive funding for high-risk, high-reward research with strong commercial potential.
Projects funded by SBIR and STTR have led to significant medical advancements, including treatments for patient populations with limited options. Notably, nearly two-thirds of SBIR/STTR projects have received support from the National Cancer Institute (NCI). These federal funding initiatives have resulted in 12% of all new FDA-approved drugs and 16% of drugs that have received priority review. Each federal dollar awarded through SBIR can generate over $20 in downstream economic activity, driving substantial economic growth and technological advancement.
New York-based companies have directly benefited from this funding model. For instance, Micatu developed a low-cost tissue microarray device with SBIR funding, enhancing cancer research capabilities. Similarly, Sapience Therapeutics utilized SBIR funding to advance a first-in-class cancer therapy that has earned orphan drug designation from the FDA.
As the September deadline approaches, bipartisan support for reauthorizing the SBIR program has emerged. The House of Representatives has already passed legislation aimed at extending the program. Now, it is crucial for the Senate to take action before the expiration date to secure the future of vital funding for early-stage research in New York and throughout the nation.
Advocates for the biotech sector, including stakeholders from academia and industry, emphasize the urgent need for Congressional action to protect New York’s innovation economy and the welfare of patients who rely on new treatments. Without reauthorization of the SBIR program, the state risks losing critical funding that fuels its biotech sector, which has become a lifeline for economic growth and job creation in the region.
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Additional Resources
- Crain’s New York: Congress Must Act Now to Extend Lifeline to New York Biotech
- Fierce Biotech: US Appears to be Terminating Grants to Biotechs and Investors from Certain Countries
- Bloomberg: White House NIH Cuts Will Worsen Biotech Start-Ups’ Woes
- BioSpace: Surgivance Inc. Receives Phase II SBIR to Commercialize Pathology Imaging Technology
- Fierce Biotech: Altitude Sources Funding and Lab Space as Biotechs Concerned About Future NIH Grants
- Wikipedia: Biotechnology
- Google Search: Biotech Funding News
- Google Scholar: Biotech Innovation
- Encyclopedia Britannica: Biotechnology
- Google News: Biotech
Author: STAFF HERE NEW YORK WRITER
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