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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

Amol M. Joshi (), Todd M. Inouye () and Jeffrey A. Robinson ()
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Amol M. Joshi: Oregon State University
Todd M. Inouye: Niagara University
Jeffrey A. Robinson: Rutgers University

Small Business Economics, 2018, vol. 50, issue 3, 499-519

Abstract: 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.

Keywords: Entrepreneurship; Economics of minorities; Economics of gender; Technological innovation; R&D; L26; J15; J16; O32; O38 (search for similar items in EconPapers)
Date: 2018
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