When preparing a proposal for Small Business Innovation Research or Small Business Technology Transfer funding, many innovators focus heavily on the technical aspects—significance, innovation, team qualifications, objectives, and research approach.
While these are essential, one critical area often receives far less attention than it deserves: market research.
Not Just a Checkbox
The level of attention you give to market research in your proposal should reflect its true importance, not just whether the agency explicitly asks for it. In fact, you should understand your market before you even begin writing your Phase I proposal, regardless of whether the agency requires a detailed discussion of it.
This is especially true for agencies like the National Science Foundation, Department of Defense, and National Institutes of Health, where commercialization becomes a central focus in Phase II.
Reviewers want to see that your innovation has a viable path to market, not just technical merit.
Customer Discovery
Programs like NSF I-Corps offer invaluable experience in customer discovery and market validation. However, not every team invests the time.
If you haven’t participated in I-Corps, you can still apply its principles: talk to potential customers, understand their pain points, and validate that your solution addresses a real need.
ASBTDC’s upcoming “Painting the Business Model Canvas” online course (starts July 31) can offer an abbreviated opportunity to interview customers and establish your value proposition with key buyers, users, or prospective partners.
Types of Market Research
Market research can be qualitative (e.g., interviews, focus groups) or quantitative (e.g., surveys, market sizing). It can also be primary (you collect the data) or secondary (you analyze existing data). A strong proposal often blends both.
Here are some key components to consider:
- Technical literature search – Understand the current state of the art and how your innovation compares.
- Market analysis data – Use credible sources to estimate market size, growth trends, and customer segments.
- Recent SBIR awards – Search agency databases to identify similar funded projects and understand how your innovation stands out.
- Competitive landscape – Identify other SBIR companies in your space. What are they doing well? Where are the gaps?
Market Analysis ≠ Commercialization Plan
It’s important to distinguish between market analysis and a commercialization plan. Market analysis is about understanding the opportunity—who needs your product, how big the market is, and what the competitive landscape looks like.
A commercialization plan, on the other hand, outlines how you’ll bring your product to market—pricing, partnerships, sales channels, and more.
For example, a proposal that includes a market analysis showing strong demand for a new catheter technology is not the same as a plan for how that catheter will be manufactured, distributed, and adopted by clinicians.
Market research is not just a formality; it’s a foundation. It informs your technical approach, strengthens your proposal, and increases your chances of funding and eventual success.
Treat it with the same rigor and attention as your research plan.
To obtain assistance with market research for your innovation, contact kbergh@ualr.edu.