Transforming theoretical research into practical technologies that advance space exploration while benefiting life on Earth.
Imagine a material that can autonomously repair damage from space debris, a sensor that can detect atmospheric conditions on distant planets, or a power system that could sustain a Martian colony.
These aren't just science fiction concepts—they're the types of innovations being developed right now through NASA's Small Business Technology Transfer (STTR) program. This unique initiative creates powerful partnerships between small businesses and research institutions, transforming theoretical research into practical technologies that advance space exploration while benefiting life on Earth.
For decades, NASA has recognized that groundbreaking ideas don't always originate within large government facilities. The STTR program specifically taps into the innovative potential of small businesses working hand-in-hand with university researchers, creating a pipeline that translates laboratory discoveries into technologies ready for space missions. What makes the STTR program particularly remarkable is its structured approach to bridging the often-treacherous gap between theoretical research and practical application—what innovation experts call the "valley of death" in technology development 3 .
Mandatory collaboration between small businesses and research institutions
Transforms laboratory discoveries into space-ready technologies
Develops technologies for NASA's most ambitious exploration goals
The Small Business Technology Transfer (STTR) program is a federally mandated initiative that expands funding opportunities in the aerospace innovation arena. Central to the program is the expansion of public/private sector partnerships to include joint ventures between small businesses and nonprofit research institutions . Unlike its close cousin, the SBIR program, STTR requires small businesses to formally collaborate with research institutions, creating a structured pathway for transferring laboratory ideas into commercial products .
Established as the "idea generation" phase, where small businesses and their research institution partners work to establish the scientific, technical, and commercial merit and feasibility of their proposed innovations. Awardees receive up to $150,000 to prove their concept 1 .
Companies demonstrate the functionality of their ideas through research and development. This phase focuses on advancing the most promising technologies from Phase I, with awards reaching up to $850,000 over 24 months .
The commercialization phase where innovative technologies, products, and services that have emerged from earlier phases are brought to market. Notably, Phase III utilizes non-STTR funding from private sources or other government contracts .
Under STTR, at least 40% of the research must be performed by the small business, and at least 30% must be performed by a single research institution, which can include universities, federal laboratories, or nonprofit research organizations 3 .
While the SBIR program requires the principal investigator to be primarily employed by the small business, STTR permits the PI to remain primarily employed at the partner research institution 3 . This flexibility is particularly valuable for university faculty who wish to maintain their academic positions while leading commercially-focused research.
Recognizing that organizing effective collaborations takes additional time, NASA typically allows 12 months to complete an STTR Phase I project, compared to 6 months for SBIR Phase I projects 3 .
STTR encourages each partner to work to their strength: the research institution does research and education, and the industry partner does commercialization, creating an ideal structure for technology transition 3 .
| Requirement Category | Specific Criteria |
|---|---|
| Business Type | For-profit small business |
| Company Size | Fewer than 500 employees |
| Ownership | At least 51% owned by U.S. citizens or permanent residents |
| Location | Located in the United States |
| Research Partnership | Formal collaboration with U.S. college/university, federal R&D center, or nonprofit research organization |
The journey from idea to STTR award is highly competitive. NASA scientists and engineers evaluate proposals against five key criteria :
How innovative and technically sound is the proposed approach?
Does the team have the expertise and resources to execute the project?
Is the research plan well-designed and likely to achieve its objectives?
Does the technology have potential applications beyond NASA's immediate needs?
Is the proposed budget appropriate for the scope of work?
Recent statistics highlight the competitive nature of the program. In 2024, NASA selected 299 small business teams from across the country to receive Phase I awards, representing a total agency investment of approximately $45 million. Notably, about 32% of these companies were first-time NASA SBIR/STTR recipients, demonstrating the program's ability to continuously engage new innovators 1 .
| Year | Number of Awards | Total Investment | First-Time Awardees | Award Value |
|---|---|---|---|---|
| 2024 | 299 | $44.85 million | ~32% | $150,000 each |
| 2023 | 300 | $45 million | Not specified | $150,000 each |
The mandatory collaboration between small businesses and research institutions creates a symbiotic relationship that benefits both parties. As noted in a National Academies assessment, "STTR encourages each partner to work to their strength: the research institution does research and education, and the industry partner does commercialization, and this structure is perfect for technology transition" 3 .
This partnership model is particularly valuable for high-risk, high-reward research that might otherwise struggle to secure funding. By connecting small businesses with research institutions, STTR creates a pathway for eventually commercializing early-stage technologies that show promise but require further development before attracting private investment 3 .
Spacecraft in orbit face a constant, invisible threat: micrometeoroids and space debris traveling at tremendous speeds can puncture critical components, leading to catastrophic system failures. Traditional protection systems add significant weight, reducing payload capacity and increasing launch costs. To address this challenge, a team comprising a small aerospace company and a university materials science department proposed developing a novel self-healing polymer composite that could automatically repair punctures in spacecraft hulls.
Their NASA STTR Phase I project aimed to establish the feasibility of creating a material system containing microencapsulated healing agents that would rupture upon impact, releasing healing chemicals into damage sites where they would polymerize and restore structural integrity.
The team first developed a two-part polymer healing system consisting of a resin and a catalyst. They used urea-formaldehyde microencapsulation to create microscopic containers (50-200 microns in diameter) filled with the resin component, while the catalyst was incorporated directly into the composite matrix.
The microcapsules and catalyst were uniformly dispersed throughout an epoxy matrix reinforced with carbon fiber, creating a structural composite with self-healing capability. Control samples without healing agents were prepared for comparison.
Using a specialized gas gun apparatus, the team fired 2mm steel projectiles at velocities simulating micrometeoroid impacts (3-5 km/s) onto composite samples mounted in a vacuum chamber simulating space conditions.
The researchers employed multiple analytical techniques to assess both the initial damage and the healing efficiency:
The team used time-lapse microscopy to document the healing process in real-time, tracking the flow of healing agent into cracks and subsequent polymerization.
The experimental results demonstrated compelling evidence for the feasibility of the self-healing concept:
Samples containing microcapsules recovered 85-92% of their original strength after impact damage, compared to less than 10% recovery in control samples.
The healing system polymerized within 60-90 minutes of damage occurrence, significantly faster than required for many spacecraft repair scenarios.
Helium leak rates decreased by 94% after healing, indicating nearly complete restoration of barrier function.
The self-healing functionality added only 7-10% to the composite weight, substantially less than traditional bumper shield systems.
The success of this Phase I project established both the scientific merit and technical feasibility of the approach, positioning the team for a Phase II award to develop prototype systems for specific NASA applications such as spacecraft habitats, fuel tanks, and space suit components.
| Performance Parameter | Control Sample (No Healing) | Self-Healing Composite | Improvement Factor |
|---|---|---|---|
| Strength Recovery | <10% | 85-92% | 8.5-9.2x |
| Pressure Seal Recovery | <5% | 94% | 18.8x |
| Healing Time | N/A | 60-90 minutes | N/A |
| Weight Penalty | 0% | 7-10% | N/A |
Advanced materials research relies on specialized reagents, instruments, and methodologies. The following toolkit highlights essential components used in the self-healing materials experiment and similar STTR projects:
| Reagent/Material | Function in Research | Specific Application Example |
|---|---|---|
| Urea-Formaldehyde Microcapsules | Contain and release healing agents upon damage | Encapsulation of self-healing resins for autonomous repair systems |
| Dicyclopentadiene (DCPD) | Healing agent that polymerizes when catalyzed | Primary resin component in self-healing composites |
| Grubbs' Catalyst | Ruthenium-based polymerization initiator | Ring-opening metathesis polymerization of healing agents |
| Carbon Fiber Reinforcements | Provide structural strength and stiffness | Primary load-bearing element in advanced composites |
| Epoxy Matrix Systems | Bind composite components together | Polymer matrix for structural composites |
| Scanning Electron Microscope (SEM) | High-resolution imaging of microstructures | Examination of crack surfaces and microcapsule distribution |
Specialized chemicals and compounds that enable advanced material synthesis and functionality.
Advanced equipment for characterizing material properties and performance.
For the successful minority of proposals that receive Phase I awards, the journey has just begun. The true measure of STTR success comes from transitioning technologies from laboratory validation to practical implementation. NASA offers several pathways to support this transition:
Provides additional funds matching investments secured from non-program sources, encouraging the transition of SBIR/STTR technologies into NASA programs and missions .
Invites companies to propose for elevated awards ranging from $2.5 million to $5 million to facilitate rapid post-Phase II development of technologies that have reached specific milestones .
Advances SBIR/STTR-developed technology through further program investment and non-program investor funds, with a primary focus on commercialization rather than further basic development of innovation .
Helps small businesses increase the odds of accelerating their technologies into repeatable and scalable business models. Through I-Corps, firms conduct customer discovery to learn their customers' needs, obtain a better understanding of their company's value proposition, and develop an outline of a business plan for moving forward .
The NASA STTR program represents far more than a source of research funding—it's a deliberately structured ecosystem for bridging the gap between fundamental research and practical application. By requiring formal partnerships between small businesses and research institutions, the program leverages the respective strengths of both worlds: the scientific discovery capability of universities and the product development focus of entrepreneurial companies.
This powerful combination has already yielded technologies that contributed to NASA missions, including an icy soil acquisition device that helped the Phoenix Mission find water on Mars, advanced lithium-ion batteries for space applications, and specialized laboratory systems for analyzing extraterrestrial materials . As NASA sets its sights on renewed lunar exploration and eventual Mars missions, the technologies emerging from the STTR program will play an increasingly critical role in overcoming the formidable challenges of deep space exploration.
Perhaps most importantly, the program demonstrates that America's innovation ecosystem remains vibrant and productive when different types of organizations—government agencies, small businesses, and research institutions—work in coordinated partnership toward ambitious goals. The technologies developed today through STTR partnerships may not only enable future space missions but could also spawn entire new industries that benefit life on Earth, proving that investment in fundamental research continues to yield extraordinary returns.