The Small Business Innovation Research (SBIR) program was established by Congress to fund research and development (R&D) by small businesses of 500 or fewer employees. Eleven (11) federal agencies participate in the program, including the Department of Defense.

The Small Business Technology Transfer (STTR) program was established to fund cooperative R&D projects with small businesses and non-profit U.S. research institutions, such as universities. Five federal agencies participate, including the Department of Defense. Both programs focus on projects and services with the potential to develop into a product for military or commercial sectors.