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Evaluation of Commercial Potential of ISTC Projects in
Nuclear Cities1
1. Introduction
With the intent of contributing to the ENCI - International Working Group (IWG), the ISTC is providing
its’ experience and observations on the Commercial Potential of ISTC Projects in Nuclear Cities as follows:
Since 1997, the ISTC has paid increased attention to:
1.
2.
Better exploiting results of those ISTC projects which may have a commercial potential (technology
push) on the world markets, and to
Attracting private partners by providing opportunities and privileges, industrials companies and
research centers to organizations who agree on the non-proliferation goals of the ISTC and who
support these by engaging former WMD scientists in peaceful research meeting the company’s
technology needs (market pull).
2. Exploitation of ISTC Project Results – Projects in Closed Cities
2.1. Valorization of ISTC Project Results
In order to fulfill the goal of better exploiting the commercial potential of ISTC projects, the ISTC
established in 1998 a Task Force for Valorization of Project results. In a first overall approach by
December 1998 a total of 545 projects were evaluated and coordinated to the following categories:
Status “5”
Partner Project or Success Story
Status “4”
Targeted for Valorization
Status “3”
Commercial potential
Status “2”
Status “1”
Status “0”
To be determined
Public Sector
No hand off
The work of the Valorization Task Force was continued by the ISTC Technology Assessment Committee,
which meets on a regular basis to assess ongoing the commercial potential of ISTC projects on the basis of
the obligatory Technology Implementation Plan.
As a result of these assessments, the ISTC has currently (February 2002) 803 projects in it’s “Valorization
database”. Of these projects there are 422 projects which have status 3, 4 or 5 (s. Figure 1, Annex 1)
2.2. “Commercial Interesting”2 Projects in Closed Cities
The total number of ISTC projects and provided funds in Russian Nuclear Citites, including partner
projects, is presented in Table 1:
Institutes
VNIIEF
VNIITF
Seversk
Projects
171
65
1
Funds (Mio US$)
29,5
13,4
0,31
Funds (Mio EURO)
5
3,6
Table 1: Projects and Funds in Nuclear Cities
1
This document was drafted by the ISTC Secretariat Moscow; contact address: Meyer@ISTC.ru,
Dalgaard@ISTC.ru
2
This concept is used in the text for the purpose of describing all projects which have been assessed by the
ISTC and which have been determined to have status “5’ (partner project/ success story), status “4”
(targeted for valorization) or status “3” (commercial potential).
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When focussing particularly on the closed-city projects which are “commercially interesting”, the total of
45 projects in this category has been determined.
From this total, 28 projects from VNIIEF (11 are categorized as “Partner Project / Success story”, 12 are
“Targeted for Valorization” and 5 are categorized as having “Commercial Potential”). As for VNIITF 16
projects (6 as Success story, 3 are targeted and 7 with commercial potential) have been identified. There is
one project from Seversk determined to have commercial potential. Details on these projects are reflected
in Annexes 2.
Institutes Status 5
Status 4
Status 3
Total
249
54
119
VNIIEF
11
12
5
VNIITF
6
3
7
Seversk
1
Table 2: Total number of “Commercially Interesting” Projects in 3 Russian Nuclear Cities
3. Exploitation of Potential in Nuclear Cities
ISTC-funded projects (having Status “3” and “4”)
As mentioned under 2.2) there are 28 projects from VNIIEF, VNIITF and Seversk, which have been
evaluated and determined as having commercial potential, or targeted for valorization. ISTC is undertaking
following activities for promoting these technologies:
 The technologies are presented on the ISTC website in a one-page write up (Technical Opportunity
Sheet –TOPs)
 Some of the technologies are presented to individual companies operating within the ISTC network
 Some technologies are evaluated by outside consultants, specializing in technology transfer
 Selected projects are presented to companies ready to provide Venture Capital.
Following successes have been achieved:
ISTC project #257 “High Temperature Battery” developed under ISTC grant at VNIIEF. Agreement
signed via ISTC contracts with General Atomics granting exclusive manufacturing rights on the battery to
VNIIEF and worldwide distribution rights to General Atomics.
ISTC project # 342 and follow–up projects “Sensor for measuring concentrations of Toxic Element in
River Water” developed under ISTC grant at VNIITF. Sensors developed, patented with ISTC support and
sold on the Russian market.
Partner Projects (Status “5”)
During the last 4 years, the ISTC has made special efforts to recruit private companies to carry out research
and development projects under the ISTC Partner Program. One of several reasons for this activity is that
the ISTC considers that privately funded research per definition aims at commercial application.
ISTC has currently (February 2002) 144 Partners of which 76 are actively funding projects. In total ISTC
has 319 Partner-funded projects. 17 projects are in closed cities: 6 of these Partner-funded projects are
carried out in VNIITF, while 11 projects are in VNIIEF.
In comparing the amount of Partner-funding in US$ into Nuclear Cities, with the total amount of Partnerfunding, the following amounts appear: Total Partner-funding at ISTC is US $ 76,8 million of which US $
4,2 million (5%) goes into the closed cities Sarov and Snezhinsk. From these funds some US$ 1,8 Million
are provided by private companies only (s. Annex 1, figure 2 and 3).
In fact there is a comparatively small amount of Partner funds flowing into the Nuclear Cities. Although the
closed cities are characterized by employing elite-scientists and offering similar high-level infrastructure
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and unique equipment, there are still a number of obstacles for private, foreign enterprises to invest. Among
these obstacles are the lack of free access and movement, the deficit of record of market-oriented research,
over decades the isolation of scientists and, to some extent, poor and slow (because controlled)
communication infrastructure. To achieve a sustainable change in the currently, limited international
cooperation between Russian Nuclear Cities and private industry, these obstacles have to be eliminated or –
as a minimum – to be reduced.
4. Considerations on how to improve ISTC Efficiency in Closed Cities
The ISTC is devoted to it’s original goal “to give weapons scientists and engineers, particularly those who
possess knowledge and skills related to weapons of mass destruction or missile delivery systems, in the
Russian Federation and … the CIS…, opportunities to redirect their talents to peaceful activities…”.
The terror attacks of 11 September 2001 have reinforced the importance of the ISTC and its nonproliferation objectives.
Instruments for fulfilling the goals are, in addition to project management, the activities related to
valorization of project results and Partner recruitment. Actual commercialization of ISTC technologies was
not the main goal at the founding phase of the ISTC in 1992 – 1994. However, the ISTC Parties, and the
Secretariat itself, paid increasing attention to promoting and exploiting the project results during the recent
years. In this respect a number of so-called “sustainability activities” have been introduced. These activities
are a mix of support for “technology push” and for “market pull”.
A further strengthening of this approach could be the following means:



Criteria of the first evaluation project proposals for funding: An emphasis to be made on proposals
with commercial potential.
Deepening of ISTC “Sustainability Activities”: Additional, dedicated experts required.
Increased focus on Recruitment and Partner activation and on “Customer Relations” (Better service to
Partners).
Related to better exploiting the competence of the Closed Cities:



Analysis of competence within the closed cities and comparison with market priorities.
Based on this to develop Special Action Plans: E.g. follow up to the 1999 VNIIEF Action Plan and
new plans for other closed institutes. The plans should include support for better marketing of the
institutes to attract private interest. Other means could be the emphasis of already well introduced tools
like: training, exchange of scientists, provision of improved communication technology, travel grants.
A subsequent action would be to create an innovation strategy for the individual institutes.
Thesis:
IWG-ENCI may serve as an appropriate tool for this approach !
*******
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Annex 1
Total number of evaluated
projects - 803
5/Partner Project
249
4/Targeted for
valorization
381
3/Commercial
119
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Number of
Projects with st. 0,
1,2
Fig. 1: Total of valorised ISTC Projects; 422 have status “3, 4, 5.”
11 6
Total number of
Partner projects
VNIIEF
VNIITF
319
Fig. 2: Total ISTC Partner Projects and its share in Nuclear Cities
Total Partner
funding (Mln. US$)
5%
Closed cities
Partner funding
(Mln. US$)
95%
Fig. 3: Total of ISTC Partner Funds and its share in Nuclear Citites
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Annex 2
VNIIEF Projects: Status 3 – Commercial
Number of the project
0216
0326
0443
0289
0560
Title
Tunable CO2-Laser (R)
Accelerator-Based X-Ray Medicine Device (R)
Inert Gases Cleaning Technology
Electron Phase Transition Analysis
Software for Nuclear Control
VNIIEF Projects: Status 4 – Targeted for valorization
Number of the project
0049
0075
0142
0214
0215
0478
0651
0651-2
0665
0738
0765
0781
Title
Vibration Diagnostics
Acoustic Devices for Reactor Control
Laser Monitoring for Pipelines
Ash Microspheres for Coal Burning
Multipurpose Supercontainer
Heat Insulating Material
Light Beams Apodization
Light Beams Apodization
Powerful Xenon Light Source
NPP Diagnostic Equipment Demonstration
Scandium Iodide Lamps
Purification of Gas Flows
VNIIEF Projects: Status 5 - partner project/ success story
Number of
the project
1659
1763
X-Ray Diodes Testing
Non-Proliferation Activities at VNIIEF
1752
Mechanical Detonator for Oil-Gas Perforators
1798
2131
X-ray Protective Additive Compositions
Retrofit of Vehicles for Compressed Natural
Gas
Surface Acoustic Waves Probe Implant
Theory of Anisotropic Plasma Instabilities
Transcutaneous Electrical Nerve Stimulation
Pattern Recognition System
New Materials for Fuel Cells
High Temperature Solid State Battery
2231
1704
2227
2191
2281
1161
Title
Partner
Los-Alamos National Laboratory USA
Russian-American Nuclear Security
Council USA
Schlumberger Cambridge Research
Center, UK
Bayer AG, Leverkusen, Germany
US Department of Energy
US Department of Energy
Los-Alamos National Laboratory USA
US Department of Energy
US Department of Energy
US Department of Energy
General Atomics USA
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VNIITF Projects: Status 3 – Commercial
Number of the project
0298
0491
1531
0612
0657
0744
0271
Title
Investigation of Accidents at Oil-Processing Plants
Neutron Protein Indicator
Flow in Porous Media
Explosive Works Safety
Explosive Processes in Molecular Systems
Moisture of Bulk Materials
Radiation Cleaning of Gas Flow
VNIITF Projects: Status 4 – Targeted for valorization
Number of the project
0342
0342-2
0772
Title
Electrochemical Instruments for Environmental Monitoring
Electrochemical Instruments for Environmental Monitoring
Optical Control of Nuclear Materials
VNIITF Projects: Status 5 – partner project/ success story
Number of
the project
1531
Title
Partner
Flow in Porous Media
1688
Strategic Stability Under Nuclear Cuts
2295
1689
2277
1815
Processing of Items from Al-Li and Al-Mg-Sc Alloys
Undeclared Nuclear Activities Detection
Electrochemical Oxygen Pumps
Cleanup of HLW Storage Tanks
Seversk Projects: Status 3 – Commercial
Number of the project
0338
Title
Uranium Hexafluoride Reprocessing
ExxonMobil Upstream Research
Company, USA
Russian-American Nuclear
Security Council USA
US Department of Energy
US Department of Energy
US Department of Energy
RedZone Robotics, Inc., USA