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other countries. (See Appendix F.3 for an overview of Russia’s ambitious plans for developing the pharmaceutical-biotechnology sector.)

All the while, U.S. pharmaceutical and biotechnology companies continue searching at home and abroad—with considerable success—for new opportunities to apply scientific findings to development of marketable products. A few international companies have recognized the strong research capabilities of individual Russian scientists as well as teams of scientists, and they are interested in engaging with selected groups of Russian researchers. However, most U.S. pharmaceutical and biotechnology companies consider investments in other countries to have higher prospects for economic returns during the next decade. Thus, they are concentrating most of their efforts elsewhere.

In a few cases, U.S. companies have enlisted Russian partners that have contributed their technical skills in developing the technological basis for market success. Still, applications of biotechnology in the private sector have been in large measure a one-way street. Technology has flowed to Russia from abroad as it tries to stay abreast of international developments. The tangible benefits to the United States have been sparse, limited to the incomes that U.S. companies can earn from selling their products in Russia. Nevertheless, the evolution of the Russian market attracts continued interest of the U.S. private sector.


This chapter highlights examples of approaches that Russian and U.S. partners have pursued to develop technologies that would be of interest to potential users, primarily in Russia. At the same time, Russian, U.S., and other international companies have been producing and selling a few items based on biological science and biotechnology innovations within Russia. Of course, many international firms have been vying for sales to the Russian government and regional governments of imported goods and services, while local companies and local entrepreneurs have difficulties winning open and fair competitions at the national, regional, and municipal levels. As emphasized above, they simply cannot offer competitive goods and services.

As noted in Chapter 2, more than a decade ago the U.S. government began exploring opportunities to engage Russian partners in conversion of biological production facilities from defense to civilian activities. The only significant effort in this area was the redirection of activities at the previously discussed Sibbiopharm facility in Berdsk. On a more modest scale, while upgrading physical security systems at the State Research Center of Virology and Biotechnology Vector, the U.S. government provided limited technical assistance for strengthening the production capability of the associated company Vector-BiAlgam in Koltsovo.

The Engelhardt Institute of Molecular Biology in Moscow took a different approach as it expanded its research activities into the public- and private-sector marketplaces. The institute made arrangements with Argonne National Labora-

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