```

NEW OPPORTUNITIES

by Elizabeth Aiken & Trevor Gunn

U.S. companies have greater access than ever before to the
scientific and technological wealth of the Newly Independent
States (NIS) of the former Soviet Union.  Unique and valuable
technologies are now available to Western partners for the first
time as NIS research institutions struggle to adapt to a market
economy.  The challenge is to find these organizations before
they hook up with the competition or go bankrupt.

Russia's Technological Inheritance
Russia is the principal heir of the Soviet Union's formidable,
sprawling scientific establishment.  Funded lavishly by the
central government during the Soviet era, Russian scientists have
equalled or surpassed the West in the development of many
technologies.  Russia's research institutions have produced major
achievements in fields as diverse as materials science, molecular
biology, and theoretical physics.  Since 1991, however, their
government financing has largely dried up and they are more open
than ever before to working with foreign partners.  Cooperation+
with Russian scientists can provide new insights and lower the
cost of research and finished products.  While Russians like to
work with Americans, other countries are also very interested in
Russian science and technology and are already very active in
making contacts.

In addition to technology, NIS research organizations can also
offer U.S. companies valuable insight in developing marketing and
distribution channels.  Since Soviet-era research institutes and
design bureaus were often responsible for technology in an entire
industry, they developed broad knowledge and contacts among local
companies in their fields.  This is very helpful, given that many
NIS manufacturers often have very little idea who their
competitors are or what they produce.

Companies that are serious about developing contacts in the world
of NIS science and technology should build up their own networks
through personal relationships.  "I ask my present Russian
buddies," says James F. Baur of Science Solutions, Inc. of San
Diego, California.  "They can quickly find what I seek, if it
exists, through the extensive informal network they have long
maintained."  

Opportunities are great here, in part because many research
institutes concentrated on pure research during the Soviet
period.  As a result, the commercial applications of Russian
science have been largely overlooked.  U.S. companies' role here
is to help these entities redirect their resources toward
commercially viable production and get these technologies to
market.

Involvement with the Russian science and technology establishment
can be as bureaucratically confusing as partnership with Russian
enterprises.  Much of the scientific sector is still structured
along Soviet lines, with research institutes and design bureaus
responsible for research and development, and manufacturers
engaged in applying new technologies.  Agreement at one level
does not automatically grant permission from another.  
Government ministries still maintain some authority over the
activities of certain research institutes, particularly those
engaged in defense-related work.  However, U.S. companies can
often reach agreements directly with many Russian institutes.

Although Russian Government funding is extremely scarce, some
money is available to institutes involved in priority research. 
U.S. companies cooperating with entities receiving funding may be
able to take advantage of these funds.  Priority areas identified
by the Russian Ministry of Science include telecommunications,
agriculture, new industrial technologies, information and
communication technology, new materials, chemical engineering,
fuel and energy production, transportation, forestry, space
research, environmental science, genetics and biotechnology,
medical technology, and research in the basic properties of
matter. 

Russia's newly established Association of State National Research
Centers can help U.S. companies identify these institutes.  The
Association's mission includes promotion of international
cooperation and assistance in reorganizing its 61-member 
institutions.  Prof. German Zagainov, formerly director of the
Central Aerohydrodynamic Institute (TsAGI), heads the
Association.

Making Contact
There are various ways to identify NIS technologies suitable for
commercial application.  A number of U.S. companies function as
brokers for NIS technology, such as Science Solutions, Inc.,
East/West Technology Partners, and Kiser Research.  Others, like
Science Applications International Corporation (SAIC), represent
NIS research institutions in contracting research and development
services to U.S. and other international clients.  Organizations
such as the U.S.-Russia Business Council, the Russian-American
Chamber of Commerce, the American Chamber of Commerce in Moscow,
and the Foundation for Russian-American Cooperation also have
member companies involved in this field.

Publications that provide NIS contact information relating to
science and technology include BISNIS Search for Partners, The
Russia Defense Business Directory, The Ukraine Defense Business
Directory, and The Kazakhstan Defense Business Directory, all of
which are U.S. Department of Commerce publications; Russian
Government Today, by Carroll Publishing, which lists a variety of
government ministries, research institutes, and other
organizations; KRI News, published by Kiser Research, and others.

Commerce Department Sources
A number of U.S. Department of Commerce programs also support
U.S. companies interested in NIS science and technology.  BISNIS
trade specialists have access to an extensive database of
research organizations that lists which NIS institutes are
working on which specific scientific topics and technologies. 
The Commercial Service of the United States (formerly the U.S. &
Foreign Commercial Service) can contact and organize meetings
with NIS research institutions for U.S. companies through its
"Gold Key Service."  

Another Commerce-supported program is the U.S.-NIS Biotech
Gateway, a business consortium that maintains an office in Moscow
and supports its members by helping them make contacts, follow
developments, and cultivate relationships in the field of
biotechnology.  There are American Business Centers (ABCs) in a
number of NIS cities that contain major research organizations,
and the Special American Business Internship (SABIT) program
supports internships for NIS scientists and engineers with U.S.
companies.  For more information on Department of Commerce and
other programs and organizations related to science and
technology in the NIS, call BISNIS at (202) 482-4655.

Elizabeth Aiken is an occasional contributor to the BISNIS
Bulletin.  Trevor Gunn covers Russia for BISNIS.
```