Balancing innovation with commercialization in NASA's Science Mission Directorate SBIR Program

The NASA Science Mission Directorate (SMD) administers a portion of the Small Business Innovative Research (SBIR) Program. One of the challenges of administrating this program is to balance the need to foster innovation in small businesses and the need to demonstrate commercialization by infusion into NASA. Because of the often risky nature of innovation, SBIR programs will tend to drift into a status that rewards proposals that promise to deliver a product that is exactly what was specified in the call. This often will satisfy the metric of providing a clear demonstration of infusion and thus also providing a publishable success story. However, another goal of the SBIR program is to foster innovation as a national asset. Even though data from commercially successful SMD SBIR tasks indicate a higher value for less innovative efforts, there are programmatic and national reasons to balance the program toward risking a portion of the portfolio on higher innovation tasks. Establishing this balance is made difficult because there is a reward metric for successful infusion and commercialization, but none for successful innovation. In general, the ultimate infusion and commercialization of innovative solutions has a lower probability than implementation of established ideas, but they can also have a much higher return on investment. If innovative ideas are valued and solicited in the SBIR program, then NASA technology requirements need to be specified in a way that defines the problem and possible solution, but will also allow for different approaches and unconventional methods. It may also be necessary to establish a guideline to risk a percentage of awards on these innovations.