INNOVATE Act

The INNOVATE Act is a comprehensive set of reforms to the SBIR (Small Business Innovation Research) and STTR (Small Business Tech Transfer) programs aimed at accelerating the transition of government-funded research into practical, market-ready technologies, with a strong emphasis on national security-relevant, battle-ready technologies, broader participation, and streamlined processes. The bill would increase funding and set-asides for STTR, create a new Phase II “Strategic Breakthrough” funding pathway with ambitious milestones and acquisition mechanisms, and expand opportunities for new entrants (including Phase 1A) while prioritizing rural participation and reducing administrative burdens. It also imposes new prohibitions related to censorship and expands connections to private investors, while pushing agencies toward fixed-price contracting and broader use of open-topic solicitations. Overall, the bill seeks to (1) speed and scale critical technology development for national needs, (2) broaden participation beyond traditional groups and geographies, (3) tighten cybersecurity, research security, and non-censoring safeguards, and (4) simplify and modernize SBIR/STTR administration to improve agility and outcomes.