Senator Joni Ernst, chair of the Senate Small Business and Entrepreneurship Committee, is leading an effort to reform and reauthorize the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs through the INNOVATE Act. The programs are set to expire on September 30th, and supporters say that key changes in the bill are designed to protect American intellectual property from foreign espionage and direct funding to companies that can enhance national security.
Coverage of this initiative highlights concerns over foreign influence in U.S. innovation efforts. One statement reads: “This isn’t partisan politics, it’s basic competence. When China is spending $55 billion on research and development in 2025 while we’re letting our innovation programs get exploited, every month of delay costs America competitive advantage.”
Advocates for updating the SBIR and STTR programs argue that modernization is necessary to keep up with global competition. “The program must evolve to keep pace and drive improved results. The INNOVATE Act, led by Sen. Joni Ernst, chair of the Senate Small Business Committee, addresses these concerns through a common-sense series of reforms and improvements to modernize the SBIR/STTR program to drive improved outcomes for cutting-edge technologies.”
Ernst has emphasized Congress’s role in supporting small businesses: “Congress must continue delivering for small businesses and build upon the momentum of the One Big Beautiful Bill by passing my INNOVATE Act to expand opportunities for Iowa entrepreneurs, stand up to China, and support America’s warfighters.”
Some observers note challenges facing defense companies in securing contracts for new technology: “The INNOVATE Act offers an opportunity to restore SBIR's original purpose of funding genuine American innovators developing breakthrough technologies for defense applications.”
National security considerations are also cited as a reason for action: “If we are serious about preserving our technological superiority and preparing for tomorrow’s threats, we must support innovators who can deliver faster, smarter and more affordable solutions. The INNOVATE Act is not just a reform bill. It is a national security imperative.”
Business leaders have voiced their backing as well. Michael Robbins, President and CEO of Association for Uncrewed Vehicle Systems International, stated: "Small businesses are critical to American innovation, especially in autonomy, robotics, and advanced defense technologies. Programs like SBIR and STTR have long provided a crucial pathway for emerging companies to transform promising research into deployable capabilities that serve both national and commercial interests. The INNOVATE Act ensures these programs remain agile, secure, and focused on transition. Importantly, the INNOVATE Act modernizes due diligence and reinforces safeguards to protect U.S. intellectual property and SBIR-STTR investments from foreign exploitation, ensuring taxpayer-funded innovation supports American security, not adversarial regimes," said Association for Uncrewed Vehicle Systems International President and CEO Michael Robbins.
