SBA proposes to define the term ``essentially equivalent work'' to occur when substantially the same research is proposed for funding in more than one application or to more than one agency, or a research objective and design for accomplishing an objective are the same or closely related in two or more proposals. SBA understands that STTR Participants often submit duplicate proposals to more than one agency. However, the proposed Policy Directive precludes agencies from funding essentially equivalent work in the STTR Program.

In addition, SBA proposes to define the term ``feasibility'' because it is used when discussing Phase I of the program. Specifically, the purpose of Phase I is to determine the scientific and technical merit and feasibility of a proposed effort and the quality of performance of the SBC with a relatively small agency investment before consideration of further Federal support in Phase II. SBA proposes to define ``feasibility'' to mean the practical extent to which a project can be performed successfully.

SBA also proposes a definition for the term ``innovation'' because the term is used throughout the Policy Directive. SBA proposes ``innovation'' to mean something new or improved, having marketable potential, including (1) development of new technologies, (2) refinement of existing technologies, or (3) development of new applications for existing technologies.

SBA proposes to define the term ``intellectual property'' to incorporate all of the separate and distinct types of intangible property, such as patents and trademarks. The proposed definition would also specifically include STTR technical data and all types of intangible assets either proposed or generated by an SBC as a result of its participation in the STTR Program. SBA proposes this definition because the term is used throughout the Policy Directive and is important to SBCs in terms of their rights in intellectual property developed pursuant to the STTR Program.

SBA proposes to define the term ``joint venture'' to mean an association of concerns with interests in any degree or proportion by way of contract, express or implied, consorting to engage in and carry out a single specific business venture for joint profit, for which purpose they combine their efforts, property, money, skill, or knowledge, but not on a continuing or permanent basis for conducting business generally. Further, for purposes of the STTR Program, a joint venture would be viewed as a business entity in determining power to control its management and would be eligible under the STTR Program provided that the entity created is small and each concern that is part of the joint venture qualifies as a SBC. SBA proposes this definition of joint venture because it is consistent with the definition of joint venture in the Federal Acquisition Regulations (FAR) and is appropriate for the program.

SBA proposes to define the terms ``outcomes'' and ``outputs'' because SBCs will report on such measures when describing their Phase II awards. This information will be utilized in the government's Tech- Net database to help SBA and the Federal agencies assess the STTR Program. SBA proposes to define ``outcomes'' as the measures of long- term, eventual, program impact and the term ``output'' as the measures of near-term program impact.

SBA proposes to define the term ``principal investigator/project manager'' as the individual designated by the applicant to provide the scientific and technical direction to a project supported by the funding agreement. The principal investigator/project manager is a key person to the project and the Policy Directive sets forth several requirements for this person, i.e., they must be identified in the proposal and may have employment with the SBC or collaborative research partner at the time of award and during the period of performance.

SBA proposes to define the term ``prototype'' to mean a model of something to be further developed, which includes designs, protocols, questionnaires, software, and devices. The term ``prototype'' is used in the definition of R/R&D, which provides that R/R&D includes a systematic application of knowledge toward the production of useful materials, devices, and systems or methods, including design, development, and improvement of prototypes and new processes to meet specific requirements.

SBA proposes revising the definition of ``research institution.'' Currently, the definition provides that the institution must meet the requirements of a United States research organization. In the proposed definition, SBA further clarifies this requirement to mean that it must have a place of business located in the United States, and which operates primarily within the United States or which makes a significant contribution to the United States economy through payment of taxes or use of American products, materials, or labor. SBA proposes this definition because SBCs have always been required to meet these requirements to receive the benefits of this program, and thus the same should apply to research institutions receiving STTR benefits.

SBA adds definitions for the terms ``STTR Technical Data'' and ``STTR Technical Data Rights'' and deletes the term ``data rights.'' SBA proposes these definitions because the Reauthorization Act requires SBA to clarify data rights under the program. In addition, SBA has received many inquires from SBCs concerning what data is actually protected under the STTR Program, and what rights business concerns have regarding their STTR developed technologies. The proposed definition defines ``STTR Technical Data'' to include all data generated during the performance of an STTR award. The proposed definition defines ``STTR Technical Data rights'' as those rights obtained in data generated during the performance of any STTR Phase I, II, or III award that an awardee delivers to the Government during or upon completion of a Federally-funded project, and to which the Government receives a license.