STATEMENT
of the
Honorable Nydia M. Velázquez, Ranking Democratic
Member
House Committee on Small Business
Hearing on the Small Business Technology Transfer Program
Aug. 1, 2001
Thank you, Mr. Chairman.
Today we take another step
towards reauthorizing the Small Business Technology Transfer
Program. This initiative, which began in 1992, has a unique
goal: to help small business and the research community
join together to bring innovative new technologies to the
marketplace.
It is impossible to overstate
the impact technological innovation has had on the economy
and on our lives. Computer and telecommunications innovation,
biotechnology and chemical engineering have fueled a a boom
and changed the way we work and live. Some were unheard
of or exotic just ten years ago, and today they have become
the norm.
The Small Business Technology
Transfer Program has in part spurred this period of remarkable
creativity and growth. Between 1994 and 1998 alone, STTR
awarded 864 federal grants for research through five federal
departments and agencies. STTR has created inventions emerging
in highly evolved technologies, leading to advances in vaccine
applications and biotechnology research.
With the passage of today's
legislation, we continue to support small technology firms
across this country by extending the life of the STTR program
through the year 2008. More importantly, we will expand
the program in a reasonable way by increasing the percentage
of federal research grants we are reserving for small business
from 0.15 to 0.30 percent --- doubling the amount of research
dollars going to small business.
This will go a long way
toward increasing the role small firms play in developing
new technology. We are not only increasing opportunities
for new enterprises, but we have also increased the Phase
Two grants from $500,000 to $750,000 for those already successful
small businesses we have. This will greatly increase the
chances of product commercialization.
Finally, by directing SBA
to develop a model agreement, we are moving to streamline
the program so small businesses spend more time developing
technology and less time on bureaucratic paperwork.
But despite this success,
I would like to caution my colleagues --- we can do more.
We all know that technology
can be the great equalizer in bringing economic opportunities
to under-served communities. This is an area in which STTR
must play a larger role. I am worried that women- and minority-owned
businesses are being left behind during this technology
revolution. Of the 864 contracts awarded, only 1.5 percent
of those went to women-owned small businesses and only 2.8
percent were awarded to minority businesses. This defeats
one of the core mission of STTR --- to help small businesses
that otherwise do not have access to the tools and advice
they need to take their ideas from the laboratory drawing
board to the marketplace.
We have to begin to look
for solutions by tracking awards to low-income communities.
This will give us a basis in the future to measure the level
of support that STTR is providing to these areas.
We are also reemphasizing
the importance of outreach to low-income communities by
redirecting the Federal and State Technology Partnership
program. This program was created last year to encourage
technology development in areas that had limited growth
and success. An important component of this was supposed
to be outreach to low-income communities.
Unfortunately, the ensuing
regulation implementation failed to focus on low-income
communities. So here we make it crystal clear that outreach
is a critical component to technology development. Hopefully
these changes will begin to open up access to technology
to businesses located in low-income communities.
Mr. Chairman, during the
past decade, we saw enormous growth in both small business
and technological innovation. The benefits are many, but
the gap between communities who benefit from the economic
strength of technological entrepreneurs and those that are
left behind is wide. STTR is instrumental in helping more
researchers and small businesses build the next new thing
while at the same time bridging the digital divide.
Thank you very much.
