Show Me the Money

As someone seeking SBIR funding, you already know that crafting a compelling proposal is essential. However, a crucial, often overlooked aspect of the proposal process is understanding trends in government agency funding for various technologies over time. By keeping a close eye on these trends, you can align your project with the strategic priorities of the funding agencies, significantly enhancing your chances of success.

Check out the end of the article for a GREAT Example of how you could quickly see those trends in the SBIR Research Portal.

Why Trends Matter

Government agencies, such as the National Science Foundation (NSF) or the Department of Defense (DoD), continually adapt their funding priorities to meet evolving national needs, technological advancements, and policy directives. What they funded five years ago may no longer be a priority today. Understanding these shifts can help you identify which areas of research and development are currently in demand and where future funding might be headed.

Some Departments heavily advertise their priorities, (See the Air Force Operational Imperatives for a good example). However, there is what is said and what is done. Following the money gives a much clearer picture of what an organization ACTUALLY values, not just what they claim to value.

Staying Ahead of the Curve

By analyzing funding trends, you can tailor your proposal to address the most pressing needs of the agency. For example, if you notice an increasing emphasis on artificial intelligence or renewable energy, you can highlight how your technology aligns with these priorities. This approach not only demonstrates that you are in tune with the agency’s goals but also positions your project as a valuable solution to emerging challenges.

To really stay ahead, the best strategy is to understand their, “stated priorities”—heavily emphasize your solution’s connection to those goals, but ensure the actual technologies you are bringing to the table align with where that agency is spending its money.

Leveraging Trends for Strategic Positioning

Understanding trends also enables you to identify underfunded areas with growing importance, where competition may be less intense. If you can position your project in these niches, you might have a better chance of securing funding. Additionally, being aware of trends allows you to anticipate new topics in future solicitations, giving you a head start in developing innovative ideas that are more likely to attract attention.

Example

In the competitive world of SBIR proposals, understanding government agency funding trends is not just beneficial—it's essential. By keeping an eye on where the money is flowing, you can better align your proposal with agency priorities, strategically position your technology, and ultimately improve your chances of securing funding.

As a quick example, here are several organizations’ investments in hypersonic-related technology since 2018:

You may notice that in 2021, the agency to submit your hypersonics-related SBIR to would have been MDA, not the US Army.  Indeed, in 2023, despite falling by over 50%, MDA was still awarding about 10x more money in this field than the US Army, even though the Army was publicly advertising their interest in hypersonic technologies.

A true dark horse in the data set is that the Defense Logistics Agency began awarding more SBIRs that mentioned "hypersonic" in 2022 than the US Army and was nearing MDA levels of spending by 2023.

The SBIR Research Portal makes it easy to see what those contracts actually were for and can show if they were truly Hypersonic technologies, or perhaps related to logistics support for Hypersonic weapons.


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