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Small Business Economics

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16-06-2017

How does agency workforce diversity influence Federal R&D funding of minority and women technology entrepreneurs? An analysis of the SBIR and STTR programs, 2001–2011

Authors: Amol M. Joshi, Todd M. Inouye, Jeffrey A. Robinson

Published in: Small Business Economics | Issue 3/2018

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Abstract

US Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs provide Federal research and development (R&D) grants to technology ventures. We explore how grantor demographic diversity explains why demographically diverse grantees experience different odds for successfully transitioning from initial to follow-on R&D grants. We empirically analyze 52,126 Phase I SBIR/STTR awards granted by 11 Federal agencies (2001–2011). We find a positive association between agency workforce diversity and Phase II funding for Phase I grantees, but minority and women technology entrepreneurs are less likely to receive this funding than their non-minority and male counterparts. Agencies valuing workforce ethnic diversity or leveraging gender homophily positively influence the likelihood of women technology entrepreneurs obtaining Phase II funding. We discuss evidence-based implications for policy and practice.

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A member of our co-author team was an invited participant in a special NASA event held at the team member’s university. With advanced planning and NASA’s permission, our team member scheduled and met individually with appropriate representatives from 8 Research Centers and 2 Mission Directorates.

The one notable exception in NASA’s demographic diversity is that it does have a sizable Hispanic workforce compared to other large Federal agencies and the overall U.S. government. Most of NASA’s major facilities are located in Florida, Texas, and California, which are states with large Hispanic populations relative to the rest of the U.S. NASA employees attributed the apparent success in recruiting Hispanic employees to the agency’s ability to build long-term relationships with universities located near NASA centers.

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Title: How does agency workforce diversity influence Federal R&D funding of minority and women technology entrepreneurs? An analysis of the SBIR and STTR programs, 2001–2011
Authors: Amol M. Joshi
Todd M. Inouye
Jeffrey A. Robinson
Publication date: 16-06-2017
Publisher: Springer US
Published in: Small Business Economics / Issue 3/2018
Print ISSN: 0921-898X
Electronic ISSN: 1573-0913
DOI: https://doi.org/10.1007/s11187-017-9882-6

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