DOD Entrepreneurial Innovation Act

The DOD Entrepreneurial Innovation Act designates certain small business research programs (SBIR/STTR Phase III agreements) as "Entrepreneurial Innovation Projects" to prioritize national security innovation. Each military department must annually select at least five eligible programs through advisory panels composed of private sector experts, military leaders, and acquisition professionals, based on criteria like national security impact and cost savings. Designated programs receive special budget treatment, including separate funding lines in defense planning documents and inclusion in annual progress reports to Congress. This law directly affects small businesses participating in DOD research contracts and reshapes how the Department of Defense identifies and funds emerging technologies.