U.S. Senate Committee on Small Business and Entrepreneurship Chair Joni Ernst (R-Iowa) addressed the Center for Strategic and International Studies (CSIS) regarding proposed reforms to the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. Ernst emphasized the need to strengthen these initiatives against foreign threats, particularly from China, while prioritizing support for U.S. military personnel.
Ernst highlighted her INNOVATE Act, which would implement a standard foreign due diligence assessment intended to protect key technologies from being accessed by China. The act also aims to reduce waste and incentivize entrepreneurs who are developing advanced technology.
“The public-private partnership structure has seen some success, but in its current state, the program has lost its way and is benefiting China at the expense of our warfighters—making reform both urgent and essential,” said Ernst. “My INNOVATE Act would put a stop to this egregious misuse of taxpayer funds by establishing clear, consistent standards for federal agencies and empowering them to recover taxpayer dollars when our national security is threatened. We can’t keep allowing the effectiveness of the SBIR program to be limited.”
The INNOVATE Act has received positive feedback from small businesses nationwide. According to information released this week, the Pentagon has expressed agreement with Ernst’s approach to protecting American innovation from China and other foreign adversaries.
