NEI Small Business Technology Transfer (STTR)

NEI STTR Phase II — R&D

Funds collaborative small-business partnerships to mature vision innovation into market-ready healthcare technologies.

The NIH National Eye Institute (NEI) STTR Phase II program (R42) funds full research and development projects conducted cooperatively by a U.S. small business and a nonprofit research institution, building directly on results from a completed NEI STTR Phase I award. NEI covers vision research across its three extramural divisions: Retina/Glaucoma/Low Vision, Anterior Segment (Cornea, Lens, Dry Eye), and Strabismus/Amblyopia/Visual Processing. STTR Phase II advances a validated concept through the complete R&D cycle while maintaining the mandatory partnership structure between the company and its academic or research institution collaborator.

Phase II awards are capped at $1,972,828 in total costs (direct plus indirect) over up to two years — the same ceiling as NEI SBIR Phase II under the FY2026 NIH-wide schedule. The collaboration agreement between the small business and the research institution must remain active and govern the work through the full Phase II period. Phase III commercialization uses non-STTR funds; the expectation at the Phase II exit is that the technology is de-risked to the point of attracting private investment or a licensing partner. Applications follow the standard NIH SBIR/STTR omnibus submission windows: September 5, January 5, and April 5 each year.

Eligible applicants are U.S. small businesses with no more than 500 employees; the research institution partner must be a domestic nonprofit research organization or federal lab. The principal investigator may be employed by either entity. Strong Phase II applications provide compelling Phase I data, a detailed commercialization strategy, and evidence of the continued relevance of the institutional collaboration to the remaining R&D work. NEI program director pre-consultation is strongly recommended to ensure study section alignment and mission fit before submission.