Minnesota Establishes New State SBIR/STTR Office

For 20 years, small tech firms and researchers in Minnesota called on Minnesota Project Innovation (MPI) for assistance in developing competitive proposals for the federal Small Business Innovation Research or Small Business Technology Transfer (SBIR/STTR) programs. On Feb. 28, the MPI Board of Directors voted to officially transfer program operations to the state Department of Employment and Economic Development (DEED).

Betsy Lulfs, who joined DEED in early February, will coordinate and expand the SBIR/STTR programs, according to DEED. The program will tap into DEED’s statewide network of Small Business Development Centers, regional business development representatives and business service specialists – as well as through partnerships with organizations such as Medical Alley/MNBIO, the University of Minnesota and Minnesota State Colleges and Universities. Lulfs formerly worked with a similar program in Ohio.

Since its creation in 1984, MPI helped its client Minnesota firms to identify funding opportunities and obtain high-risk capital for start-up, early-stage and existing companies to commercialize technologies into new products and services. The organization helped Minnesotans receive more than $250 million in SBIR/STTR funding over the time period, spurring the creation and growth of several publicly traded businesses as well as numerous privately held companies.

During the past two years of tight state revenues and budget cuts to many Minnesota economic development initiatives, the state has not provided any funding to MPI. When MPI was created in 1984, Minnesota ranked 35th among all states in the number of SBIR/STTR grants. By the end of fiscal year 2002, the state’s national ranking had risen to 14th, with more than 100 Minnesota companies pursuing and winning approximately $30 million in SBIR/STTR funding for research and development efforts.

In her new capacity as coordinator of DEED’s SBIR/SSTI assistance program, Lulfs said she expects those numbers to continue to rise.

“We’re taking what was essentially a one-person shop and expanding its operations across DEED’s entire statewide network,” she said. “By broadening our efforts in this way, our goal is to offer Minnesota companies vastly increased exposure to these federal funding opportunities.”

Former MPI director Pat Dillon is the new facilitator for the Defense Alliance of Minnesota (DAM). Dillon worked on SBIR/STTR assistance for nearly 13 years and continues to provide consulting and training services on securing federal R&D. DAM, formed in July 2004, serves to nurture and expand Minnesota's defense industry job base.