1. Short title This Act may be cited as the Encouraging Small Business Innovation Act . 2. Inclusion of testing and evaluation in the definition of research and development Section 9(e)(5) of the Small Business Act ( 15 U.S.C. 638(e)(5) ) is amended— (1) by redesignating subparagraphs (A), (B), and (C) as clauses (i), (ii), and (iii), respectively (and conforming the margins accordingly); (2) by striking means any activity which is and inserting the following: means— (A) any activity which is— ; and (3) in clause (iii), as so redesignated, by adding and after the semicolon at the end; and (4) by adding at the end the following new subparagraph: (B) any testing or evaluation in connection with such an activity; . 3. Inclusion of small business investment companies in SBIR and STTR Section 9 of the Small Business Act ( 15 U.S.C. 638 ) is amended— (1) by striking or private equity firm investment each place such term appears and inserting private equity firm, or SBIC investment ; (2) by striking or private equity firms and inserting private equity firms, or SBICs ; (3) in subsection (e)— (A) in paragraph (12)(B), by striking and at the end; (B) in paragraph (13)(B), by striking the period at the end and inserting ; and ; and (C) by adding at the end the following new paragraph: (14) the term SBIC means a small business investment company as defined in section 103 of the Small Business Investment Act of 1958.