BUSINESS
RUSHING TO MARKET
To fulfill the Rusnano mission, Chubais has been on the road talking with potential collaborators and coinvestors in countries that include the U.S., South Korea, Israel, Investing heavily, RUSSIAN INITIATIVE hopes to catch up and Germany. “We go country by country in nanotechnology commercialization to find advances that each can offer and companies that want to expand,” he said. Still, Rusnano does not want to spread IN 2004, the U.S., Japan, and the European in light of Russia’s inflation rate, represent itself too thinly over the world but rather Union accounted for 85% of global R&D “negative interest rates,” Chubais added. find “real” projects that will give results. spending on nanotechnology, with most Russia’s goal for what it will reap from It’s been only a year since Rusnano forof it coming from government sources, acthese investments is equally ambitious. mulated its commercialization strategy. cording to a recent analysis by the LondonSales of Russian nanotech-enabled prodIn that time it has received nearly 1,000 based consulting firm Cientifica. ucts were about $545 million in 2008. Rusapplications for funding. One-third were Fast-forward to 2009, and that percentnano wants to help create an industry with rejected in an initial review and half are still age has shrunk to 58%. It will shrink further, $27 billion in sales of nanotech-enabled to be reviewed. From about 133 undergoCientifica predicts, reflecting the emerproducts by 2015, or about a 3% share of the ing further appraisal, 12 proposals have gence of Russia and China as major players estimated world market. About one-third been approved and launched. The total in nanotechnology. Although the EU reof these sales are to come from Rusnanoinvestment in these projects is about $864 mains in the lead, Russia has taken second backed operations. million, nearly two-thirds of which is from place, followed by the U.S., Japan, and In many ways, Rusnano. Areas for China. When corrected for the countries’ Rusnano behaves investment so far RUSNANO INVESTMENTS actual purchasing power, however, China as a venture capital include medical Russian initiative plans to spend $8.55 moves up and ties with the U.S. for third. investor that evaludevices and metal billion to create nanotech industry Over the past two years, Russia has ates business plans, cutting tools. moved quickly and decidedly to catch up invests money, The biggest $ Billions 10 with other countries that have had national provides adminisproject is Russia’s ■ Investment nanotechnology programs in place for trative and manafirst large-scale 8 ■ Sales targets of companies financed several years. In 2007, Russia’s government gerial support, and polycrystalline sili6 inaugurated its own national initiative and eventually exits its con and monosicreated the state-owned Russian Corporainvestments. But it lane facility, in the 4 tion of Nanotechnologies (Rusnano) to differs in one imIrkutsk region. The $41 million develop a nanotech industry. Coordinating portant way: “We 3,800-ton-per2 basic research is the responsibility of the do not have a target year plant will also 0 Kurchatov Institute, in Moscow. for profits, only for supply a Rusnano2009 10 11 12 13 14 15 The push on nanotechnology is part of a revenues,” Chubais backed cluster SOURCE: Rusnano strategy to diversify the Russian economy told C&EN in an of firms that will away from oil and gas, explained Rusnano interview after the use the output for Chief Executive Officer Anatoly Chubais in address. The idea is to act as a coinvestor making photovoltaics and semiconductor his keynote address at the recent Nanotech and assume certain financial and other components. Partners include the Rus2009 conference in Houston. Rusnano risks to make projects attractive to private sian companies Sitronics, Angstrem, and will focus on financing projects that lead investors. When a business becomes susSistema; Switzerland’s Oerlikon; and posto nanotech-based products and on other tainable, “we will exit,” he added. sibly NanoGram from the U.S. support areas, such as certification, stanRussia is moving in the same direction dardization, safety, and education. WELCOMING TO ALL sources of new nanas many other countries by shifting the balRussia is stepping in later than other otechnology, Rusnano is looking to work ance of government funding from pure to countries, Chubais acknowledged, and has with foreign companies, governments, and applied research. Whether the economic a lot to learn in order to set its priorities. other investment funds. Applications for crisis crimps such spending won’t be seen Already, though, Rusnano plans on investfinancing are open to any party, Chubais until at least 2013, Cientifica notes, because ing an average of $1.2 billion annually durexplained. It wants innovative projects that government money is generally allocated ing the next seven years. It will invest in all end with the manufacture of marketable over long periods. Because Russia and othstages and sizes of projects, taking up to an goods based on nanotechnology. Although er governments are embracing nanotechalmost 50% share and funding a large pronot all operations need be in Russia, a stipnology to fuel economic growth, one view portion of their expenditures. Loans for up ulation is that most of the manufacturing is that they will continue to invest. to 10 years are being offered at terms that, must be done there. “We understand that we are at a very initial stage, but we feel real enthusiasm to support the program and see a number of potential partners across the world in countries already developing nanotechnology,” Chubais said.—ANN THAYER
Sales of Russian nanotech-enabled products were about $545 million in 2008. WWW.CEN-ONLINE.ORG
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