There is an extensive literature on the success/failure of firm-funded R&D projects but growing policy interest focuses on publicly-funded R&D projects. Using data from 1,878 Phase II R&D projects funded through the U.S. Small Business Innovation Research (SBIR) program, of which 624 had been discontinued prior to technical completion, we provide for the first time findings on the success/failure of publicly-funded firm-performed R&D projects. We find that prior R&D experience with the technology being funded by SBIR projects, the amount of the SBIR award, and having a female PI, other factors held constant, is negatively related to the probability of project failure. In contrast, firm size is positively associated with project failure. We discuss the implications of these findings for practice, policy, and further research.