The government sponsors two programs, the Small Business Innovation Research (SBIR) Program and the Small Business Technical Transfer (STTR) Program, which have proven very effective in releasing the "innovative juices" of the research and development minds of the small business community.
Although they were resisted at first by government buying offices, they are now very popular with both the buying offices and Congress. If you watch late-night TV, these initiatives are usually the source of the "Grants" that you hear about. . .and they are certainly not free! For more information: