Don't pull the plug on Iowa innovation

Our state's biosciences sector is thriving. It employs more than 28,000 people across 1,900 businesses. We're home to the nation's highest concentration of food scientists and employees in vaccine and immunotherapy biological manufacturing. And Iowa inventors have received roughly 2,500 bioscience-related patents in recent years.

But continued progress now depends on our congressional delegation working to renew the Small Business Innovation Research program, a federal initiative that helps small companies transform early-stage research into real-world breakthroughs. From cancer diagnostics to precision agriculture, SBIR-funded startups are pushing the frontiers of science — and fueling job growth along the way.

The program itself is almost entirely uncontroversial, and commands widespread bipartisan support. Yet it's set to expire by Sept. 30 — unless Congress renews it before then. Patients' lives, and Iowa workers' jobs, depend on Congress taking action.

SBIR provides funding for small companies that are working on promising research that's so early-stage, private investment firms often aren't able to invest yet. Unlike venture capital or state grants, SBIR offers funding that doesn't require companies to give up equity or meet unrealistic revenue milestones.

Each year, SBIR and its sister program, the Small Business Technology Transfer, invest $4 billion in around 4,000 companies nationwide. In Iowa, this funding powers scientific discovery and economic growth.

NanoMedTrix, a biotech firm in Coralville, is using its $2 million SBIR grant to develop nanotechnology tools for targeted drug delivery in bladder cancer. Geminii Health, a biotech startup in Iowa City, is developing the first non-invasive therapy for Type 2 diabetes using electromagnetic energy. ZwiCoat Materials Innovations, another grantee in Iowa City, engineers thin-film coating technology to reduce scarring and infections in deaf patients who use cochlear implants.

These are small companies with big ideas — the kind of enterprises that turn a handful of jobs into dozens, and then into hundreds, as their innovations scale. Overall, Iowa's success rate in the program is 30%, triple the national average for applicants. And their success has ripple effects throughout our economy. Every dollar invested in SBIR and STTR can create more than $20 in economic activity — a return few government programs can match.

It's also why Iowa has stepped up to do its part. The State of Iowa offers matching funds up to $75,000 for Successful Phase 1 awards and Phase 2 submissions — only one of a handful of states to do so. But without the federal program in place, our state-level funding can't do its job.

The stakes are high. Nationwide, SBIR and STTR awardees are responsible for 12% of all FDA-approved drugs and 16% of drugs that received priority review — treatments for critical unmet needs. These programs don't just help grow businesses — they deliver for patients whose lives depend on faster breakthroughs.

Sen. Joni Ernst, chair of the Small Business Committee, has led the charge to reauthorize SBIR and STTR. In 2022, she co-led the SBIR and STTR Extension Act, and earlier this year, she introduced legislation to extend both programs once again. Unfortunately, the rest of Congress has allowed the reauthorization of SBIR to languish. And with Congress out on recess until after Labor Day, lawmakers are running out of time.

If lawmakers fail to act, it'll derail the development of promising medical treatments and other cutting-edge technologies that begin here in Iowa, but impact the entire world. Iowa's innovators want to keep solving hard problems. It's up to our leaders to ensure they have the funding to do so.

Jessica Hyland is the executive director of the Iowa Biotechnology Association (IowaBio).