Final report submitted to the US Agency for International Development by Virginia Polytechnic Institute and State University : International Business & Technology Incubator (IBTI)

The IBTI initiative has been and continues to be one of the most successful technology-intensive USAID supported projects. All major objectives have been met or exceeded. Of 500 business proposals reviewed, 60 received investment or other support and 9 new companies were created. Capital assistance was typically used for prototype development and testing, patent protection, and market assessment. Twenty-two regions and cities are now in the IBTI network, and 676 new entrepreneurs received training in new technology business development. IBTI enhanced its credibility through a series of specialized seminars, publications, and conferences. IBTI has demonstrated a replicable distributed incubator model. Over 20 regions of Russia are modeling business support activities after IBTI. These include three new private consulting companies in Nizhni Novgorod, Tomsk, and Ulianovsk, initiated by IBTI. The project also made unanticipated progress. Recognizing IBTI"s value to the economic recovery of their country, elements of the Russian federal and regional governments have provided additional funding, often on a matching basis and sometimes exceeding the USAID budget for particular projects; total non-USAID support of $845,000 was received by the IBTI. What is more, a considerable amount of new Russian money is currently awaiting the opportunity to match any new funding provided by investors. This support and income generated by IBTI activities, such as training and project evaluation services, have put it on the path to self sustaining status. Important lessons learned are that there are more similarities than differences in commercializing technology in the United States and Russia, and that Western best practices in technology commercialization and management are relevant to Russia.