Businesses developing innovative health and life sciences technologies may be eligible for competitive research funding from the National Institutes of Health (NIH), especially through small‑business‑focused programs such as the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs, which continue to be key NIH mechanisms for funding early‑stage commercial innovation in 2026.
What is the NIH?
NIH is the largest medical research agency in the world, with a history dating back to the late 18th century.
Originally known as the Marine Hospital Service (MHS), its founding goal was the prevention of ship passengers spreading infectious diseases. The organization has evolved over time to become what it is today, an organization dedicated to medical research and advancement. After starting in Bethesda, Maryland, the organization has grown to include 27 institutes throughout the country.
Mission and Objectives
The NIH stands as the cornerstone of biomedical research within the United States Department of Health and Human Services.
In recent years, NIH’s annual budget has exceeded $47.2 billion for biomedical and behavioral research. With Congress sustaining a healthy research funding trajectory through fiscal year (FY) 2026. While its core mission remains to revolutionize scientific understanding of living systems and leverage this knowledge to improve health and reduce illness and disability.
The agency’s objectives:
- Fostering creative breakthroughs, innovative research strategies, and their applications to protect and improve health while upholding scientific integrity and ethical conduct.
- Fortifying the nation’s disease prevention by offering training for researchers and clinicians.
- Broadening the scope of understanding in medical and related fields, to boost the nation’s economic prosperity and ensuring a sustained yield from public investments in research.
NIH Institutes and Centers
There are 27 institutes and centers within the National Institutes of Health that address different health issues. These sub-agencies each focus on specific aspects of biomedical research and health care.
Here are a few examples of such sub-agencies:
- National Cancer Institute (NCI): Leading cancer research, treatment, and prevention efforts.
- National Institute of Allergy and Infectious Diseases (NIAID): Focusing on infectious diseases, immunology, and global health concerns.
- National Heart, Lung, and Blood Institute (NHLBI): Specializing in cardiovascular, pulmonary, and sleep disorders research.
- National Institute of Biomedical Imaging and Bioengineering (NIBIB): Advancing biomedical imaging and technology for healthcare improvement.
For a full list of sub-agencies, click here.
Examples of NIH Grants
To advance scientific knowledge and improve human health, the NIH provides grants to researchers, institutions, and organizations, including U.S. small businesses through SBIR and STTR mechanisms.
These grants undergo a competitive, expert peer‑review process that evaluates scientific merit, approach, and potential impact. There are different types of NIH grants, each with its own activity code, purpose, and eligibility criteria.
Some of the most common NIH grant types that businesses should know include:
- R01 Research Project Grants: Support a specific, well‑defined research project proposed by an investigator or team, typically led by an academic or research institution.
- R21 Exploratory/Developmental Grants: Encourage exploratory and high‑risk research projects that have the potential for high reward but may lack preliminary data.
- R03 Small Research Grants: Provide limited funding for small, discrete, well‑defined projects that can be completed in a short period.
- R43/R44 SBIR Grants: Phase I (R43) and Phase II (R44) awards that fund U.S. small business concerns to develop and commercialize innovative biomedical technologies.
- R41/R42 STTR Grants: Phase I (R41) and Phase II (R42) awards that require formal collaboration between a U.S. small business and a U.S. research institution to move promising technologies toward commercialization.
What types of projects are funded by the NIH?
NIH funds a wide range of projects across life sciences, including therapeutics, diagnostics, medical devices, digital health tools, and behavioral interventions, many of which involve small business participation through SBIR and STTR awards.
Examples include projects to develop novel heart valves and implantable devices, monoclonal antibody‑based therapies for infectious diseases, and digital or software‑based interventions to support cognitive and mental health.
Where should a small business start?
In 2026, small businesses interested in NIH SBIR or STTR funding should first confirm they meet NIH’s small business eligibility criteria, complete required registrations (including SAM, Grants.gov, and eRA Commons), and then identify relevant SBIR/STTR Notices of Funding Opportunity (NOFOs) on the NIH Grants website or through institute‑specific small business program pages. Early contact with the appropriate NIH program officer and careful review of the full NOFO remain critical steps for a competitive application.
Where does Leyton fit in?
Leyton’s Grants & Incentives team assists businesses from a wide range of industries in accessing government grants, including NIH SBIR and STTR awards. Our consultants support clients by:
- Scoping eligibility
- Project managing the application process
- Drafting and reviewing technical and commercial documents
- Ensuring timely and compliant submission
- Liaising with NIH and other government representatives on the company’s behalf.
