Phase 1 concerns a feasibility study for the innovation with a quotation amount for setting up a research and development trajectory (phase 2). It is possible (and stimulated through SBIR) to collaborate with knowledge institutions or other companies in this phase.
Phase 2 is teh reserach and development trajectory. The end result is a tested prototype, limited zero series or trial project of the product, process or service.
In phase 3 of SBIR, the government can offer itself as a large innovation oriented buyer, in order to be the first owner of the new techology. This grants entrepeneurs an excellent chance to bring their innovation to market. This phase is however not funded by the government.