COMMENTARY ON SBIR REAUTHORIZATION:
Defense Companies Getting Outplayed on Contracts
By Tyler Beaver | August 27, 2025 | National Defense Magazine
Overview: America's defense contractors are watching their innovation pipeline get hijacked while they focus on major acquisition programs. Foreign adversaries and "SBIR mills" are manipulating the Small Business Innovation Research program, diverting billions in taxpayer funding away from genuine American startups and toward entities with questionable connections to China.​
Key Points:
Top 20 "SBIR mills" have consumed $3.4 billion in contracts with minimal commercial output​
Six of the top 25 SBIR recipients have evident connections to China, yet still secured $180 million in funding​
True American innovators struggle against foreign-affiliated entities with sophisticated applications and unlimited financial backing​
The INNOVATE Act proposes essential reforms including lifetime funding caps and enhanced foreign due diligence​