TABLE 5.2-9Reasons Given by Companies for Discontinuing Phase II Projects

Reasons Yes (%) No (%) Primary Reason (%)
Technical failure or difficulties 33 67 19
Market demand too small 42 58 17
Not enough funding 48 52 13
Licensed to another company 21 79 10
Company shifted priorities 40 60 8
Principal investigator left 17 83 6
Product, process, or service not competitive 29 71 6
Project goal was achieved (e.g., prototype delivered for federal agency use) 31 69 6
Level of technical risk too high 21 79 0
Inadequate sales capability 15 85 0
Other 19 81 15

SOURCE: NRC Phase II Survey.

NOTE: The OII reportedly does not stop projects for cause once a grant is made. This may be contrasted with the Advanced Technology Program, whose practice was to stop projects for cause and to track the cause of “terminated” projects.

From: 5, Commercialization

Cover of An Assessment of the SBIR Program at the National Science Foundation
An Assessment of the SBIR Program at the National Science Foundation.
National Research Council (US) Committee for Capitalizing on Science, Technology, and Innovation: An Assessment of the Small Business Innovation Research Program; Wessner CW, editor.
Washington (DC): National Academies Press (US); 2008.
Copyright © 2008, National Academy of Sciences.

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