ISTC Partner Program: Gateway to collaboration with Russia/CIS. Minimizing the risks of failure

1. Prof. Waclaw Gudowski, Deputy Executive Director With assistance of Jose Pradas-Poveda, SPM “Thematic Conference onBio-, Nano- and Space Technologies, EU & Science Centers Collaboration” Ljubljana, Slovenia 10-12 March 2008 ISTC Partner Program:Gateway to collaboration with Russia/CIS.Minimizing the risks of failure

2. Outline and structure • Objectives and description • ISTC – mode of operation • Achievements • ISTC partners: Some figures • Features of ISTC Partner program • Bio-, Nano- and Space technologies • Conclusions

3. Historical Background Russia inherited legacy of Soviet scientific system Extremely large, state-managed enterprises By 1980’s, over 97% of support for science came from state budget Focus on military-industrial complex Over three-quarters of Soviet R&D complex was related to defense 83% of research was directly defense related & funded Soviet collapse in 1991 meant science was no longer a budget priority Change of ideology and difficult fiscal situation meant science was perceived as a budget luxury (State budget collapses first at crisis time) • 3

4. The ISTC, Members. Mission“Non-Proliferation Through Science Cooperation” • The ISTC is an Intergovernmental Organization with diplomatic status founded by the European Union, Sweden, Norway, Republic of Korea, the United States of America, Japan and Russian Federation in November 1992; operations began in March 1994.In 2004 Canada joined to ISTC as the Funding Party • In 2008 Switzerland joins ISTC • Headquarters in Moscow with Offices in Armenia, Belarus, Georgia, Kazakhstan, Kyrgyz Republic, and Tajikistan 4

5. ISTC objectives Nonproliferation through science cooperation • Provide weapons experts in the CIS the opportunity to redirect their talents to peaceful activities • Contribute to solution of national and international science and technology problems • Reinforce the transition to market economies • Support basic and applied research • Integrate CIS scientists into global scientific community

6. ISTC Core Programs and Services • Regular Project Program • Partner Project Program • Sustainability Program • Commercialization Support Program • Patenting Program • Competence Building Program • Workshops and Scientific Seminars • Travel Grants • Communication Support Program • Partner Promotion Program 6

7. Operational Components of ISTC Statutory entities

8. Core operation of ISTC. Regular Projects Research Teams Project Execution Project Application. Results Host Government Concurrence Export Control ISTC Secretariat ISTC Secretariat Project Management Foreign Collaborators Exploitation of Results Scientific Advisory Committee Ratings Governing Board Funding Approval

9. ISTC Accomplishments of 14 Years of Operation Non PROLIFERATION Almost 70,000 scientists engaged in RF and other CIS 922 institutes - 2579 projects funded USD 787M$ UNIQUE 37 Nations engaged in cooperative technology development, and growing efforts of working toward nonproliferation and greater world security. RESPECTED: Reliability and Services Intergovernmental organization with status of diplomatic mission CLEAN Legal, audited & transparent mechanism 9

10. Has ISTC done its job well?

11. Has ISTC done its job well? • Provide weapons experts in the CIS the opportunity to redirect their talents to peaceful activities -     • Contribute to solution of national and international science and technology problems -    • Reinforce the transition to market economies -   • Support basic and applied research -    • Integrate CIS scientists into global scientific community:    

12. A measure of nonproliferation efficiency of ISTC: Number of disclosed/reported PROLIFERATION CASES ORIGINATED FROM RUSSIA AND CIS DURING 1994-2007: ”0” Very few ”suspicious” cases were publicised in media but not officially confirmed

13. ISTC development phases and proliferation risk perception Hands off weapon Support for a decent survival of experts. Mainly paper work and review studies New class of young, skilled project managers emerged. More technical oriented projects Reconstruction of governmental control and management structures in WMD facilities. Staff reduced by 50% Maturity period. From Assistance to COOPERATION mode of operation 1994 1998 2002 2008 Proliferation risks from Russia (not CIS) Russian economy in continuous growth. Increasing political stability

14. ISTC main achievements • INTELLECTUAL nonproliferation objective fully ACHIEVED!! • Sizeable support for regaining Russian capability to ensure security and physical protection in area of WMD • We supported well RF in prepartion for Export Control mechanisms • Drastic reduction of nonproliferation threats in 1990’s and 2000’s • Built up of a civil oriented community inside the WMD structure with a high intellectual potential and Creation of basic foundation of civil and democratic consciousness in otherwise closed and not easily reachable community of WMD. In that way foundations for the BIGGEST REDIRECTION EFFORT IN RF have been created: • Separation of DEFENSE and CIVIL nuclear sector: creation of AtomEnergoProm

15. ISTC Achievements • A gradual integration of WMD scientists with a community of civil science: • Efficient integration of Russian and CIS WMD community into world scientific community of civil research, Transparency in ISTC activities contributed significantly to reduction of the threat perception • Creation of links and collaborative projects between weapon laboratories and civil Russian/CIS institutes. Without ISTC funding there would be neither stimulation nor driving forces for this internal openness and more transparency between those two different scientific communities in Russia. A very important contribution to a sustainable redirection • ISTC has considerably contributed to minimization of consequences of impoverishment of Russian intellectual class employed in the WMD sector. It played doubtlessly a very important role in moderating social tensions during the difficult transformation period and contributed to relatively peaceful transformation processes in 90’s.

16. ISTC main achievements • Many very successful projects of LARGE TECHNOLOGICAL AND ENVIRONMENTAL BENEFITS for Partners and PARTIES • Partnership project development – a vehicle for direct bilateral contact leading to research collaboration, commercialisation and sustainability • A lot of amasingly successful projects in technology development, environmental restoration (NW Russia), climate monitoring, biotechnology etc.

17. ISTC Core Activity: R&DTech fields and funding parties Total R&D funds 780 M$

18. Regular vs. Partner ProgramFigures “Regular” (Science) Project Program (530 M$) – funded from the ISTC budgetAt present, EU is first donor (>60%, 16 M€/y); Canada funds industry-targeted projects with high return on technology transfer (9 M$); USA in decline (focus on commercialization initiatives); Japan and South Korea virtually not funding Standard: $ 350-400 k, 3 years ATTENTION: MUST HAVE FOREIGN COLLABORATORS!! Partner Project Program (250 M$) – direct funding by Partners. ISTC minimizes the risks of failure 90% funds from US Govmt. agencies (DoE, DARPA-DoS, DoD, DoHS, DoA, EPA); 9% EU (G8 countries; CERN; German, French MNEs, public RTOs); 1% Japan (microprojects, $30k) Wide range: $ 30-850 k, 6 months - 5 years

19. A vision of ISTC Sustainability – from Bottom – Up approach to Triangle of Sustainability Working Groups harmonizing Programs and Call for Proposals Russian/CIS Ministries/Agencies. Funding Agencies ISTC <-> Foreign Partners Co-funding mechanisms Program implementations, HGC, co-funding Funding, management Programs/Call for Proposals Reporting Project/CI Proposals, reporting Research/Expert teams At Institutes • 19

20. A Practical Vision of Sustainability: Sustainability Triangle Science Marketing, Applications Excellence in Science and Technology – SAC as a WATCHDOOG Valorization of Science & Techn., Science Funding Market (like FP7) Programmatic Mode of Operation Regular Projects Partner Projects Commercialization Identified shortcuts to market Foreign collaborators Commercialization Initiatives Sustainable Partnership Commercial Market Industry • 20

21. Programs of the future ISTC priorities • Science & Technology in Support of Counter Terrorism and Global Security • Advanced Nuclear Energy Technology, Nuclear Fuel Cycle and Nuclear Safety • Public Health, Agriculture and Biotechnology • Medical Physics • Environmental Restoration and Climate Change Mitigation • Clean soil • Clean water • Clean air • Renewable and/or Environmental Friendly Energy Second priority High Energy Physics

22. Why Russia/CIS in world S&T marketplace? Unique research and science base located in Russia/CIS: Excellent schools in theoretical sciences – a paradox of non-market oriented research Innovation paradox: Resilience to transform scientific knowledge into innovative products, services and hi-tech jobs Window of opportunities: High economic growth (>7%), critical mass, reliable competence

23. Partner Project Agreement – Minimizing the Risks of Failure http://www.istc.ru/ISTC/sc.nsf/html/documents-partner-program Partner Funding Intellectual Property Rights Contractual Arrangement Reporting Tasks & Deliverables Partner Project Agreement CIS Recipient ISTC => Management & monitoring (5% fee) • Tax-free grants to researchers => Procurement of equipment & materials exempted customs duties

24. ISTC Partner ProgramAdvantages Reliable legal basis and institutional framework Access to unique technological competence Tax-free direct grant to individual participants , i.e. NO OVERHEADS Imported equipment and materials: Customs duties exemption if procured through ISTC or handed by Partner Project agreement defines and establishes background and foreground intellectual property and ownereship of IPR between Partner and CIS beneficary Export control clearance of deliverables - in accordance with project proposal and work plan Project management: Technical supervision and financial audit with only 5% fee charged to non-gov entities.

25. Regular vs. Partner ProgramFeatures Regular Partner Finance ISTC budget Co-funding options 100% Intellectual Property (IP) No ownership. Only access to results and reports 100% IP rights Technology Transfer Right to get a free exclusive license within EU Full, although efficient mechanism is required Concurrenceproject development Slow (~ 1 year; 3 funding session per year) Fast track (possible in 3 months) Grants (daily rate, <220 d/year) 35$ project manager – limited today 50-XX$ project manager Attractive salary for core members of project team

26. Options for a long term collaboration (beyond an ISTC frame) • A concept of International Science Laboratory (International Centre of Excellence) • Creating an organisational (legal) frame going beyond the ISTC project frame • Starting with an ISTC project • Ending on legal entities facilitating a long term cllaboration • A possible intermediate stage: an institute twinning concept

27. Technology Matchmaking: A service to ISTC partners Customized service Confidentiality Assistance (access, visa application) and consultancy (IP and technology transfer) Free of charge for partners Advanced Matchmaking http://partners.istc.ru/eng/

28. Bio & Lifesciences at ISTC1994 – 2007 > 220 million USD (>600 projects)

29. Bio & Lifesciences ActivitiesPrograms • Drug Design and Development • Capacity building • TB initiative • GXP training • Central Asia Disease Surveillance • Country and Regional Workshops • Biosafety & Security • Upgrading Laboratory to International Safety Standards • Improving physical security of facilities • Training of scientific staff • Radiation Therapy Treatments • Boron Neutron Capture Therapy ISTC BioCom

30. Drug Design and Development Example Capacity Building Laboratory of Biological Trials, Pushchino, Russia Enhancing capacity • Ensuring compliance with international GLP standards THROUGH • Procedures & Documentations • GLP audits • Monitoring and training • Laboratory & Animal care facilities upgrade

31. BioSafety & Security BioSafety: • Renovation of vivariums, laboratory buildings, installing incinerators, boilers, treatment areas etc. • Design and establishing facilities for central storage of highly dangerous pathogens BioSecurity: • Vulnerability assessments and design of security systems • Upgrade of electronic communication systems, fire warning systems • Installation of perimeter fencing, security gates, CCTV systems, controlled access systems, motion sensors etc

32. Nanotechnologies 1 Nanotechnologies Collaboration with Russian Organisations (RosNauka, RosAtom, Academy of Sciences, SC RosNanoTech) Workshops (last: Nanomaterials, April 2007, Vienna) Projects in 4 directions: Nanoparticles Carbon Nanotubes, Fullerenes Composites, Coatings Nanostructures and Measurement Sheets of the Ti2AlNb-based alloy produced by pack rolling Bulk Nano-structure: Ti-based bar (Ø=200 mm, L=300 mm)

33. Nanotechnologies 2 Important Institutes, working in ISTC Projects: - Nanoparticles and Clusters Institute of General Physics, Moscow Institute of Radioengineering and Electronics, Moscow Khlopin Radium Institute, St. Petersburg Kurchatov Research Center, Moscow - Alloys Moscow Institute of Steel and Alloys State Technical University of Aviation, Ufa Institute for Metals Superplasticity Problems, Ufa Leipunski Institute of Physics and Energy, Obninsk - Catalysts Boreskov Institute of Catalysis, Novosibirsk - Carbon Nanotubes, Fullerenes Federal Scientific Institute of Experimental Physics, Sarov Institute of Chemical Physics Chernogolovka, Moscow region, Institute of Microelectronics Technology, Chernogolovka, Moscow region Institute of Inorganic Chemistry, Novosibirsk 3D model of three types of single-walled carbon nanotubes.

34. Nanotechnologies 3 - Coatings Moscow Institute of Steel and Alloys - Ceramics Research and Technological Institute of Optical Materials, St. Petersburg Tomsk Polytechnical University Federal Scientific Institute of Technical Physics Snezhinsk TEM image of dispersion of NanoDiamond (coating) in amorphous styrene-acrylonitrile copolymer (SAN)

35. Nanotechnologies 4 - Nanolithography: chemical patterning combining molecular self-assembly with traditional lithography to create multifunctional surfaces in precise patterns at the molecular level. The process allows to create surfaces with varied chemical functionalities and promises to extend lithography to applications beyond traditional semiconductors. Ioffe Physical Technical Institute, St Petersburg TRINITI, Troitsk, Moscow reg. - Light emitting structures Stepanov Institute of Physics, Minsk, Belarus Institute of Crystallography, Moscow Moscow State University / Department of Physics

36. Space - 1 90 funded projects ($ 25 million): EU is the first donor, ESA-ESTEC main collaborator, and EADS has used ISTC as platform for subcontracting research and affordable launches for testing technologies Centralized around Roskosmos: Little autonomy left to institutes Russian space strategy 2005-2015, including emblematic programs (Cliper, Mars mission) Innovative propulsion systems Chemical propulsion (slot nozzle #2598) Solar electric propulsion (#2365, 2620), solar sail (#2331p) Laser (#3236, 1801, 2917, 3710) and low-power thrusters (#1165, 2447) Nuclear propulsion (#2120, 92, 335, 1171) Pulse continuous detonation (#2740)

37. Space - 2 Materials in space: ULS (#2836), thermal protection (#36), tests (#A-1229, #627 Lavochkin) Interplanetary missions: Mars lander (#2513); re-entry (Expert #3151, #1469, 2726, 3233, 3550) Earth observation (satellite Demeter #2990), modeling and equipment design (#2323, 3160), mapping (#2908), weather and climate (A-1058) Antennae/satcom

38. Slovenian partners? Why not… Public research organizations Dissemination of opportunities: Associations of industrialists Scientific facilities, universities: Any plans in Slovenia? Nuclear physics: Institute Jozef Stefan Space: Earth obervation Materials for Aeronautics: Subcontractors of Airbus Science-based SMEs, research institutes: Biotechnology, nanotech. Advanced Matchmaking and customer service to co-funding business collaborators located in CIS Slovenian national programme for R&D - Subcontract R&D Slovenia & G8 Global Partnership: Use of ISTC as platform for their non-proliferation programs in Russia and CIS Extension to all member states from Central Europe

39. Slovenian partners? If not – begin with foreign collaborators Foreign Collaborators: Benefiting from ”regular projects” with scientific excellence in focus Seeding for further collaboration Further intergration with international research programs like FP7 Exploiting commersialisation potential

40. Conclusion: Advantages of ISTC Your Request - 18 % VAT - 24 % Social taxes - 13 % Income revenue taxes - 20 % Customs duties - 20 % Profit tax ISTC provides a reliable privileged framework for subcontracting R&D

41. ContactsEU Partner Promotion Program Prof. Waclaw Gudowski Deputy Executive Director Krasnoproletarskaya ulitsa, 32-34 P.O. Box 20 / 127473, Moscow, Russia tel: 7-(495)-982-3210 / fax: 7-(495)-978-4637 e-mail: gudowski@istc.ru Jose Ignacio Pradas-Poveda Senior EU Partner Promotion Manager Krasnoproletarskaya ulitsa, 32-34 P.O. Box 20 / 127473, Moscow, Russia tel: 7-(495)-982-3119 / fax: 7-(495)-978-4637 e-mail: pradas-poveda@istc.ru Thank you for your attention