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> Funding seems pretty impossible if you're unaffiliated, though.

In CS (I am unfamiliar with other areas), I'll agree that the really big grants usually go to academic institutions, big defense contractors, or consortia of the two. But there are pretty decent funds set aside specifically for small businesses, using funds that Congress has earmarked to the National Science Foundation exclusively for such a purpose. Last I saw, the success rate for applying for such funds (in terms of % of applications successfully funded) was actually higher than for academic applicants, though the total awards are smaller.

You do have to convince a funder that your independent research organization is serious and capable of delivering research. But if you can do so, in the U.S. there are two NSF programs specifically targeting research money towards small businesses. The first is the Small Business Technology Transfer Program (STTP). This requires two organizations, with a small business and an academic institution submitting a joint proposal. They propose a plan for taking current academic results and turning them into viable products that will support a small business. The idea is to give money that will enable the academia-industry barrier to be crossed, with one partner on each side who explains why they are a good team for making the crossing happen. The second is the Small Business Innovation Research (SBIR) program, which small business can apply solo to. This funds activities that take place wholly in the private sector, but present a credible research plan that the evaluators consider to have a high likelihood of producing scientifically interesting results.



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