TitleHow 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
Publication TypeJournal Articles
Year of Publication2017
AuthorsJoshi, A, Inouye, TM, Robinson, JA
JournalSmall Business Economics
Date Published2017
KeywordsDoctoral Program, MBA, Strategy & Entrepreneurship
Abstract

U.S. 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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