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The objective of Phase I is to establish the technical merit, feasibility, and commercial potential of the proposed R/R&D efforts and to determine the quality of performance of the small businesses prior to providing further Federal support in Phase II.STTR Phase I awards normally do not exceed 0,000 total costs for 1 year.The objective of Phase III, where appropriate, is for the small business to pursue commercialization objectives resulting from the Phase I/II R/R&D activities. In some Federal agencies, Phase III may involve follow-on non-STTR funded R&D or production contracts for products, processes or services intended for use by the U. Agencies have the discretion to issue awards for less than maximum dollar amount.Agencies may exceed this cap for a specific topic with approval from SBA prior to the release of the solicitation, award, or modification to the award for a topic issued on or after the date of adjustment.Only Phase I awardees are eligible for a Phase II award. The adjusted cap is effective for all solicitations and corresponding topics issued on or after the date of the adjustment.

But frequently, innovation advances theory, rather than the development of innovative practical applications.

Small business has long been where innovation and innovators thrive.