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The Small Business Technology Transfer Research (STTR) program links entrepreneurs with the academic research community and encourages commercialization of government-funded research by the private sector. Proposals submitted to the STTR Program must have small-business principal investigators, but up to 60% of STTR funding may be used to support university subcontracts necessary to assist in the commercialization of research products by the small business firm. STTR is a three-phase program that offers incentives for converting research done in Phases I and II to commercial application in Phase III, which is funded by private capital. The difference between SBIR and STTR is in the requirements for partnership of the small business sector with the academic community.