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Arlington 1530 Wilson Boulevard, 3rd Floor Arlington, Virginia 22209 Tel: 703-526-9720 | Fax: 703-526-9721 | info@crdf.org

www.crdf.org Moscow Ulitsa Miklukho-Maklaya 16/10, Room 204 Moscow 117997, Russia Tel: 7-495-777-6560 | Fax: 7-495-777-6559

www.crdf.ru Kyiv 4 Bogomoltsa Street, Room 133 01024 Kyiv, Ukraine Tel: 380-44-253-7223 | Fax: 380-44-253-4577

www.crdf.org.ua Astana Building #2 Street #35 Ishim River Left Side Almaty District, 010000 Astana, Republic of Kazakhstan


Bridging Science and Solution Annual Report 2006


Bridging Science and Solution “The scientist is not a person who gives the right answers; he’s one who asks the right questions.” —Claude Lévi-Strauss, Le Cru et le cuit, 1964 To address many of the challenges facing the world today, successful solutions are predicated on the ability to ask the right questions. For nearly 12 years, CRDF has engaged thousands of scientists across borders to ask these questions, from junior scientists beginning their journey of discovery to more established scientists further along the path. Our interdisciplinary approach has enabled us to effectively bridge the information sought with the answer—the science with the solution—to create new knowledge, achieve critical goals and to advance the human condition the world over. Through its grantmaking and services, CRDF’s presence was felt in 2006 from Armenia to Ohio, in classrooms and boardrooms. This year we worked in new countries and regions and addressed evolving issues, laying the foundation for projects that will truly make a difference in the communities we serve. Our approach to addressing global priorities through science is comprehensive—by supporting initiatives that confront challenges and by creating the infrastructure necessary to sustain the solutions long after our work is complete. We work closely with our grantees, partners and clients to develop high-impact results to reach their goals ranging from education to commerce.

What follows are just a few of the stories chronicling our work and dedication in 2006. By serving as the bridge between science and solution, we continue to meet the challenges of an everchanging world. We invite you to join us to seek your solutions.

www.crdf.org

Bridging Science and Solution

Our model of service and support ensures that resources reach the places where impact matters most—on the ground.

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“International cooperation in science is not a luxury; it is a necessity—and the foundation for the future.”

Annual Report 2006

—Dr. Arden L. Bement, Jr., Director, National Science Foundation

2


Message from the Chair and the President

4/5

HIV/AIDS in Armenia

6/7

An Ounce of Prevention

1

2

Evolving to Meet New Threats Thinking Globally, Growing Locally

3

Confronting the Changing Menace of Bioterrorism

10/11

14/15 Helping Small Businesses Stay Competitive

A Flower in the Sand

4

Bridging the Digital Divide in Iraq

18/19

A Successful Experiment 22/23

Activity Report & Financial Statement

26/27

Board of Directors & Advisory Council

28

Acknowledgments

29

Bridging Science and Solution

5

Research & Education Integration

3


Message from the Chair and the President

At CRDF, our work engages thousands of scientists and engineers who work together and across borders to address today’s most critical challenges—from health and the environment, to security and education. Collectively, we analyze these challenges and offer solutions based on high-quality international research collaborations. Our role as that critical bridge—between science and solutions—forms the heart of this report of CRDF’s work in 2006. Our work begins even before science emerges—and continues after solutions are found. We have nurtured ideas, supported critical research, and helped others to accomplish missions, all with the desire to achieve solutions that benefit us all. As global needs changed this year, CRDF responded—advancing programs in new countries and regions to meet the needs of those we serve. Our presence was felt in many ways, from boardrooms to classrooms; and from the frontlines of avian influenza to summer English language immersion camps for science students.

Dr. Gloria Duffy

CRDF extended our expertise with Iraq, where scientific infrastructure has been demolished and where thousands of bright minds seek to reconnect with the international scientific community. We worked with governments, NGOs and corporate partners to launch the Iraqi Virtual Science Library (IVSL)—a first step in rebuilding the nation’s scientific community and preparing its next generation of scientists.

Annual Report 2006

In Eurasia, we built upon a decade of experience and knowledge to employ interdisciplinary approaches to the region’s growing needs. Through CRDF, HIV/AIDS researchers took the next steps toward developing cost-effective treatment and prevention programs and presented their work at the XVI International AIDS Conference in Toronto. Our Eurasian Innovation & Investment Forum series connected American businesspeople in Ohio with Eurasian scientists and engineers—making global competitiveness within reach for small, growing companies. In Russia, the success of the Basic Research and Higher Education (BRHE) program became further apparent with the adoption of the BRHE model by Russia for its own future initiatives in higher education.

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Ms. Cathleen Campbell


Finally, many other organizations continue to rely on CRDF for services under our Grant Assistance Program (GAP). In 2006, we responded to overwhelming positive customer feedback with growth, expanding geographically and deepening services. The pages that follow contain just a few of the stories chronicling CRDF’s role in 2006. As you read, you’ll meet Armenian HIV/AIDS researcher Dr. Karine Markosyan; Ohio entrepreneur James Ohneck; IVSL co-creator Dr. D.J. Patil; Dr. Jason Rao of the U.S. Department of State; and Dr. John Slocum of the John D. and Catherine T. MacArthur Foundation. We invite you to learn more about CRDF and how we can bridge science and solution for you.

Dr. Gloria Duffy Chair , Board of Directors

Ms. Cathleen Campbell President and Chief Executive Officer

Bridging Science and Solution

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1

An Ounce of Prevention

In June 1981 the Centers for Disease Control published the first medical description of what the world came to know as Acquired Immunodeficiency Syndrome (AIDS). Twenty-five years later, HIV and AIDS have ravaged the developing world as well as industrial nations in each hemisphere. HIV/AIDS rates in Eurasia are among the highest in the developed world, and Eurasian researchers desperately seeking to reverse this trend face many barriers, including insufficient infrastructure, funding constraints and an absence of like-minded peers. Addressing global health issues has been a primary issue for CRDF, which has funded projects supporting the work of researchers in more than 10 Eurasian and Baltic nations. By serving as a bridge to resources, funding, and interdisciplinary perspectives, CRDF enabled these men and women on the front lines against HIV/AIDS, avian flu, tuberculosis and hepatitis, as well as many can-

Annual Report 2006

cer therapies, to get closer to treatment and solutions that may

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one day benefit everyone. In 2006, CRDF activated 16 research grant awards in

Display at the 2006 International AIDS Conference, Toronto, Canada.

“I think that the opportunity that CRDF has given me to pilot this research is so valuable…hopefully we’ll be able to have these results included into the national program.” —Dr. Karine Markosyan, Project Manager, Center for Health Services Research, American University of Armenia,Yerevan, Armenia


2006 CRDF George Brown Award Recipient

Dr. King Holmes the areas of HIV/AIDS and tuberculosis, including 10 in the Russian Federation—which is witnessing Europe’s fastest infection rate. These awards are a component of the global fight against this epidemic. Recognizing the power of prevention, CRDF is providing critical support through research and travel grants to healthcare researchers in Armenia, where HIV and AIDS have not taken a firm foothold—allowing them to win the battle before it starts.

Pioneering Interdisciplinary Global Health Solutions In 1989, as founding director of the University of Washington’s Center for AIDS and STD, Dr. King Holmes took the lead in advancing research, training, resources and technical assistance for global health issues. In 2006, his work was honored with CRDF’s annual George Brown Award for International Scientific Cooperation. “George Brown was such a heroic figure in the United States. To be the recipient of this award is quite an honor,” says Holmes.

“CRDF is targeting one of the most important problems in the world in a targeted way,” Holmes says. “Replacing conflict with scientific collaboration—in terms of global health, it’s a big bang for the buck.”

Bridging Science and Solution

A pioneer of global health research initiatives, Dr. Holmes has developed a model of international collaboration that has been embodied in projects around the world. “It’s crucial to take people from across disciplines, such as arts, science, law, engineering and public affairs, to tackle this complex problem and improve health conditions for the five billion people in the world who need this,” he says.

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Annual Report 2006

An Ounce of Prevention

8

Top Left: Dr. Karine Markosyan in her office in Armenia. Top Right: Yerevan, Armenia. Bottom: Dr. Ralph DiClemente, Dr. Karine Markosyan’s collaborator at Emory University.


An Ounce of Prevention: HIV/AIDS in Armenia

“Armenia has a relatively low rate of HIV infection, but we should not wait until it becomes an epidemic to conduct this type of prevention research.” —Dr. Karine Markosyan,

Project Manager, Center for Health Services Research, American University of Armenia,Yerevan, Armenia

Poverty, unemployment, intravenous drug use, increased regional migration and a cultural stigma—these are the factors that threaten to bring HIV/ AIDS in Armenia to an epidemic level, according to Dr. Karine Markosyan, a researcher working in HIV/AIDS behavior and intervention. The key to stopping a future crisis is prevention today. Dr. Markosyan’s current project involves a group particularly at risk: female commercial sex workers. Through a CRDF cooperative grant, Dr. Markosyan is implementing an intervention program in Yerevan. In 2006, CRDF sponsored her participation in the only Eurasia-focused panel at the XVI International AIDS conference in Toronto. Here she had the opportunity to not only present her work but also connect, face-to-face, with the international scientific community. “There were no researchers in Armenia I could share my research with,” Dr. Markosyan says. “I have never been to a conference with this many networking opportunities for people who work in HIV. We shared experiences.” “I cannot emphasize how important that is to a young investigator,” says Dr. Ralph DiClemente, her collaborator at Emory University. “You have a concentrated group of scientists, a chance to present work, to get feedback. Karine now knows someone at the (U.S.) National Institutes of Health. Without CRDF, that would have never happened.”

Bridging Science and Solution

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Evolving to Meet New Threats

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There remain many security threats around the world, including former weapons scientists—who face the serious challenge of unemployment and underemployment—as well as the safety of biological materials. In some countries, the vital expertise to deal with biological threats isn’t always available in-country. That’s where CRDF comes in. By quickly engaging with partners from governments to small companies, we are helping to develop co-

CRDF’s work greatly contributed to avian influenza monitoring efforts.

operative international initiatives to promote the safe, secure and responsible use of biological materials that are at risk of accidental release or intentional misuse. CRDF’s project management support has provided significant value to the U.S. Department of State’s efforts to address the changing nature of bioterrorist threats. Our

activities in 2006 included engaging the Midwest

Research Institute—a not-for-profit organization headquartered in Kansas City, Missouri, that develops practical solutions for industry

Annual Report 2006

and government—to address needs in Indonesia, including a

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laboratory upgrade that will serve as a model for biosafety and biosecurity needs in the region. We also funded and organized

“Our office has a really small slice of the CTR pie and CRDF really helps that to go a long way.” —Dr. Jason Rao, Senior

Nonproliferation of Weapons of Mass Destruction Expertise Program Coordinator, Office of Cooperative Threat Reduction (ISN/CTR), U.S. Department of State


the participation of scientists from Eurasia, North Africa and Southeast Asia in several conferences that helped integrate them into the international scientific community. These activities resulted in the development of inFormer bioweapons facility in Berdsk, Russian Federation.

country biosafety and biosecurity expertise in new geographic areas as well as assisting in the redirection of former weapons scientists to civilian work.

Evolving to Meet New Threats meeting emerging needs redirecting former weapons scientists growing a knowledge base developing productive relationships connecting minds and ideas Bridging Science and Solution

Research team with the Russian flu surveillance project at Vector.

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Annual Report 2006

Evolving to Meet New Threats

12

Left: Iraq’s Al Tuwaitha nuclear facility. Top Right: Dr. Jason Rao. Bottom Right: Researcher with the Russian flu surveillance project.


Evolving to Meet New Threats:

“CRDF has time and again shown that meaningful, competitive and creative research and development actually makes a difference.” —Dr. Jason Rao, Senior

Nonproliferation of Weapons of Mass Destruction Expertise Program Coordinator, Office of Cooperative Threat Reduction (ISN/CTR), U.S. Department of State

Addressing emerging threats requires meaningful, competitive and creative research and development—the kind supported by CRDF, says Jason Rao, Ph.D., senior program coordinator with the Bureau of International Security and Nonproliferation’s Cooperative Threat Reduction program (ISN/CTR) at the U.S. Department of State. The programs he manages are committed to engaging former weapons scientists, promoting sustainability at former weapons institutes and developing cooperative international programs that promote the safe, secure and responsible use of biological materials that are at risk of accidental release or intentional misuse. CRDF’s flexibility and ability to respond quickly and cost effectively to solve problems have played critical roles in nonproliferation projects in key geographical areas, says Rao. “Nonproliferation has evolved greatly over the years and CRDF has grown with us, often leading and dragging, teaching us how to do it, and working in new areas,” he adds. “One of the things I think CRDF should be most proud of is helping us to establish a Russian flu surveillance project,” Dr. Rao noted. This was a collaborative project with Vector, a former biological defense research facility in Siberia. Highly trained American and Russian virologists collaborated to establish this critical effort to monitor migratory birds as they flew over Novosibirsk, in Siberia. American scientists now famous for their work on avian influenza actually provided the reagents to Vector that allowed the typing within 24 hours of the H5N1 outbreak. Today, the World Health Organization (WHO) is tapping into some of the capacities that CRDF built at Vector and specialists are considering this a sort of model surveillance program for emerging threats. “This was really a landmark project, and it was less than $100,000,” says Rao.

Multinational collaboration is a key component in CRDF’s nonproliferation programs. A prime example of the success of this philosophy is a project that provided funding for former weapons scientists from Chernobyl’s International Radioecology Laboratory to analyze soil samples from Iraq’s Al Tuwaitha nuclear facility, which is widely believed to be contaminated with uranium dioxide, or yellow cake, and a variety of other radionuclides. CRDF also provided funding for the Ukrainians to train Iraqi technicians on how to attain IAEA international standards in decommissioning the reactors and decontaminating the Al Tuwaitha site. Additional funding for this effort is provided by the U.S. Department of State’s WMD Personnel Redirection Program in Iraq. “CRDF has done tremendous work on our Iraq redirection program,” says Rao. “I can’t say enough about how helpful it’s been to have CRDF on our team.”

Bridging Science and Solution

The Russian flu surveillance project is an example of the type of contribution CRDF is offering to ISN/ CTR’s various efforts—most recently, the Biosecurity Engagement Program (BEP), which reduces the risk of biological threats by collaborating with partner governments to develop biosafety and pathogen security standards that are consistent with national and international guidelines, norms and requirements. What is more, CRDF has demonstrated its ability to rapidly respond in difficult environments and transition scientists into meaningful civilian alternatives. For instance, through a series of workshops held in neighboring Jordan, CRDF is helping Iraqi scientists and engineers to build skills for peaceful civilian employment and develop productive relationships with U.S. counterparts.

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3

Thinking Globally, Growing Locally

Many U.S. companies seek international expansion or access to commercially viable technologies—including those developed in Eurasia—but are hesitant to do so because of potential risk. Meanwhile, foreign scientists and inventors are often challenged to find ways to bring their innovations to the attention of the marketplace. CRDF’s solution: Help make the connections and simplify the process. Through programs like the Eurasian Innovation & Investment Forums, CRDF connects leading-edge U.S. companies to skilled international scientists and engineers, as well as to market and business opportunities. The first Forum—held in Cleveland, Ohio, in June 2006—generated aware-

The first Eurasian Innovation & Investment Forum—held in Cleveland, Ohio, in June 2006—generated awareness of global opportunities for U.S. participants.

ness of global opportunities for Ohio businesses, and the realization that companies do not have to outsource jobs in order to “in-source” innovation. For U.S. companies, investors and local government entities, the Ohio Forum was an opportunity to access thoroughly evaluated and commercially qualified innovations from many of Eurasia’s brightest minds. For the Eurasian scientists, engineers and entrepreneurs who served as presenters, the Forum presented an opportunity to establish relationships with potential partners. The Forum served as a crucial first step toward creating mutually beneficial partner-

Annual Report 2006

ships that will stimulate growth—not only in Ohio, but in such countries as Russia, Ukraine

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and Armenia. It demonstrated CRDF’s ability to simplify collaboration by providing the services and support mechanisms that reduce the risk for U.S. businesses interested in transnational commercial partnerships, particularly in Eurasia.

“You hear the region talking about brain drain and technology drain.This is exactly the opposite. Here we are basically importing technologies from overseas and then creating jobs in northeast Ohio.” —Wayne Zeman, VP, Venture

Development, MAGNET (a Cleveland incubator)


A Note on GAP: CRDF, specifically its GAP service, makes it possible for public and private organizations to work jointly with international counterparts. In 2006, GAP expanded many of its core capabilities and geographic reach—improving the depth and range of value to clients. One particular client has sought GAP’s services for a wide array of services since the beginning. He offers his testimony below.

Dr. Frank Garner Watching GAP Grow—and Evolve “If you present CRDF with a reasonable argument specific to your situation, the answer that comes back is almost always something reasonable,” says Dr. Frank Garner. This flexible, straightforward approach is one of the reasons why Garner has worked with CRDF’s Grant Assistance Program (GAP) since the program’s beginning—first as a Cooperative Grants Program (CGP) participant, then in conjunction with a travel grant and today in ventures that bring together cooperative research, industry partnerships and nonproliferation goals. Garner’s first GAP collaboration involved the Russian Institute of Physics and Power Engineering and a project that aimed “to take advantage of facilities and capabilities that were available in the former Soviet Union but weren’t available or affordable in the United States.” In each case, he says, the team wanted to reach a goal but the resources weren’t available. Among grant-givers, he found CRDF to be “user-friendly.” He then discovered GAP’s support facilitating a travel grant—furthering the collaboration that he finds vital for his Eurasian partners. “If I can take them to a conference, I can introduce them to other people who can use the same services,” Garner says. The human connection reached a new dimension with the “Humanitarian Soil Dielectric Mapper” project. This initiative to develop a completely unmanned (and safer) landmine detector is a joint venture of Sandia National Laboratories, LLC SPE Spektr-Conversion (Russia) and Stolar Horizon (U.S.) as part of the U.S. Department of Energy’s Initiatives for Proliferation Prevention program. GAP facilitated the safe, accountable, tax-free transfer of funds to support these efforts.

other GAP-assisted collaboration, with the Institute for Nuclear Materials in Russia and Nuclear Fuel Industries, a for-profit Japanese company that engages former weapons scientists. For such partnerships, according to Garner, CRDF fills a gap, respecting the strict collaboration rules that govern national laboratories while being able to effectively administer funding from the commercial side. “You can talk to the small private companies and say ‘We can get the kind of work you need done with the kind of budget you have.’ CRDF arranges not only to get your work done but also to protect the interests of the clients that you work with,” says Garner.

Bridging Science and Solution

But this is only one public/private partnership Garner is working on that is facilitated by GAP and integrates many of CRDF’s goals. Through his role with the Pacific National Northwest Laboratory, Garner is guiding an-

He concludes, “I talk up GAP to anyone who’ll listen.”

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Annual Report 2006

Thinking Globally, Growing Locally

16

Left: Jim Ohneck, director of marketing for Valtronic, in his office. Right: A Valtronic researcher working on fuel cell technology.


Thinking Globally, Growing Locally: Helping Small Business Remain Competitive In 2006, the Eurasian Innovation & Investment Forum helped an eye-care startup—and a region—advance its own business vision. Hosted by CRDF, the Ohio Department of Development, and 5iTech, LLC, the Forum expanded upon Ohio Governor Bob Taft’s Third Frontier Program, which aims to build world-class research capacity, support seedstage capital development and finance advanced manufacturing industries in the state. Jim Ohneck, director of marketing for Valtronic, used the event as a platform to introduce a new firm called Oculatek, a joint venture between Valtronic, Ohio firm EST, Inc., Moscow-based JSC MACDEL-Technologies, and Ohio-based 5iTech, LLC, specialists in technology commercialization. Oculatek incorporates technology developed by MACDEL into a product designed to slow progressive near-sightedness. CRDF helped the U.S. and Russian collaborators bridge differences in language, culture and marketing experience to put together a business plan that spurred inquiries from several potential investors. Jim Ohneck shares his success at CRDF’s Eurasian Innovation & Investment Forum in Cleveland, Ohio.

Oculatek’s technology was one of many innovations highlighted at the event. Companies such as H2O ECOnomy, an Armenia-based developer of fuel cells, also traveled to Cleveland to present ideas and meet potential partners. “When you can talk to the inventor, associate the face behind the company with the technology, it personalizes it and makes the investor realize there’s a human being behind this who did this job,” Ohneck says. Bridging Science and Solution

He adds that the conference’s benefits extended beyond Oculatek to Cleveland and the entire state of Ohio. “We need ideas in the city from the outside, and the state needs companies coming in from the outside to precipitate growth.”

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A Flower in the Sand

4

Higher education in Iraq faces unprecedented challenges: first, decades of isolation from the international scientific community due to sanctions, then widespread looting and destruction of already insufficient infrastructure, to the current safety and security threats targeting the research community. A powerful solution towards closing the gap between Iraqi scientists and the international scientific community now exists: the Iraqi Virtual

D.J. Patil at the Iraqi Virtual Science Library launch in Washington, DC.

Science Library (IVSL) project administered by CRDF in partnership with several U.S. government agencies, companies, and nongovernmental organizations. IVSL is an online database that provides free, full-text access to more than a million peer-reviewed articles and a large collection of educational materials. Users can log in to the IVSL from anywhere, including their homes and Internet cafes—a feature that addresses the fact that many Iraqi universities lack computer facilities, servers and campus Internet connections.

Annual Report 2006

In just a year, the IVSL developed from concept to a tool that sup-

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ports approximately 2,000 registered subscribers and is designed to be accessed by approximately 80 percent of the Iraqi student population. The growth of this knowledge base—more than 124,000 articles

“One of the things that CRDF has been able to do is act as that bridge. It’s almost a time bridge, bringing scientists who had been out of touch up to where they need to go today. And no one else has that expertise.” —Dr. D.J. Patil, IVSL co-foun-

der and former American Association for the Advancement of Science (AAAS) fellow


downloaded—has been matched by a concurrent increase in research productivity: 160 articles published by Iraqi scientists in the past year, double the output of the past five years. Through the IVSL, CRDF is building sustainability through education in a geographic region of need. Strengthening the

Kenneth J. Krieg (left)—the Under Secretary of Defense for Acquisition, Technology and Logistics at the U.S. Department of Defense— and Dr. George H. Atkinson—the Science and Technology Adviser to the Secretary of State—attended IVSL’s launch last year.

A Flower in the Sand

IVSL for the future will involve extending access to all remaining Iraqi universities, expanding the range of available data-

global visibility of Iraqi research by creating a national online

isolation hinders vital research

repository with an open-access online portal. As soon as prac-

closing the information gap

tical, the IVSL will transition entirely into Iraqi ownership and

education for real integration and acceptance

bases and promoting indigenous academic journals and the

support—a process that is well under way.

addressing an urgency to rebuild and reconnect expanding research Bridging Science and Solution

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Annual Report 2006

A Flower in the Sand

20

Dr. D.J. Patil is a former American Association for the Advancement of Science (AAAS) fellow who co-founded the Iraqi Virtual Science Library. Top Right: Kenneth J. Krieg—the Under Secretary of Defense for Acquisition, Technology and Logistics at the U.S. Department of Defense with Dr. Patil at the IVSL launch.


A Flower in the Sand: Bridging the Digital Divide in Iraq

“Without CRDF, the project could not really move forward to making the true impact of fostering engagement and integration of Iraqi scientists into the global scientific community.” —Dr. D.J. Patil, IVSL co-foun-

der and former American Association for the Advancement of Science (AAAS) fellow

“If Iraqi scientists and teachers are willing to risk their lives for their work, the least we can give them is access to information,” says Dr. D.J. Patil, IVSL co-founder and former American Association for the Advancement of Science (AAAS) fellow. Thanks to the Iraqi Virtual Science Library (IVSL), scientists who had been isolated from the international community for nearly 30 years now can access up-to-date scientific data on everything from engineering to crop rotation. Patil and Dr. Susan Cumberledge, also a former AAAS fellow, brought together the resources of a powerful public-private partnership, including policy and logistical support from the U.S. Departments of State and Defense, servers and IT expertise from Sun Microsystems and access to millions of peer-reviewed articles through the National Academies of Science. “Without programs like this, you can’t rebuild,” says Patil. CRDF was enlisted to move the IVSL from startup to an established project, drawing upon its years of experience engaging scientists and rebuilding scientific communities in Eurasia. The project ultimately will be transitioned over to the Iraqi scientific community. Patil reports that the team has developed technology and a model that will be replicable in other areas of the developing world. Bridging Science and Solution

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A Successful Experiment

5

CRDF is working to improve the conditions for conducting scientific research and education in many of the countries of Eurasia. The effects of the Soviet legacy of dividing the research and education communities and a historical lack of research and training opportunities for university science students together pose a long-term challenge to technological growth and stability. We are meeting this challenge by building sustain-

BRHE Pan-REC conference connects universities across Russia.

able institutions patterned on successful international counterparts that will enable Eurasian scientists to develop national and global science and technology advances. The Basic Research and Higher Education (BRHE) program—which integrates scientific research and education in the Russian Federation—is an example of an effective solution that has significantly influenced higher education policies in Russia. Since its inception in 1998, BRHE has successfully established 20 Research and Education Centers (RECs) across Russia, giving students and faculty access to state-of-the-art research equipment

Annual Report 2006

and providing training to further integrate young Russian scientists into

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world science.

“What’s been gratifying is that this program has been one of the most successful joint U.S.-Russian ventures over the past decade.” —Dr. John Slocum, director of

Migration and Human Mobility and co-chair of the Higher Education Initiative in Russia for the MacArthur Foundation


Over the past decade, BRHE has boosted the profile of many of the universities in the program and brought the idea of universitybased research into the set of expectations for the Russian scientific community. Even more, this overall shift to an integrated system has led to institutions where state-of-the-art research equipment and coursework are the norm, and self-sustainability

BRHE student presents his research findings at a poster exhibit in St. Petersburg.

A Successful Experiment

the ultimate goal. In 2006, the BRHE model realized an important milestone toward self-sufficiency—an expansion that was prompted by a competition conducted by the Russian Federation’s Ministry of Education and Science (MES). This competition resulted in 15 new Ministrysupported centers focusing on natural sciences and four in humanitarian and social sciences. Four of the natural science centers have now been chosen for full participation in the BRHE program.

St.Petersburg

growing a knowledge base connecting minds and ideas continuing the shift to modern educational institutions a model for change technological growth and stability

Petrozavodsk

Voronezh

Perm Tambov Kazan Ekaterinburg Samara Tomsk Rostov-on-Don Saratov Novosibirsk

Krasnoyarsk Irkutsk

*Locations of all universities supported by BRHE in Russian Federation.

Vladivostok

Students gathering at Moscow State University.

St. Petersburg State Mining Institute.

Bridging Science and Solution

Yaroslavl Moscow N.Novgorod

23


Annual Report 2006

A Successful Experiment

24

Dr. John Slocum, director of Migration and Human Mobility and co-chair of the Higher Education Initiative in Russia for the John D. and Catherine T. MacArthur Foundation.

Tomsk State University, Russia


A Successful Experiment: Research and Education Integration in Russia

“BRHE has been a true partnership between the U.S. and Russia.” —Dr. John Slocum, director of

Migration and Human Mobility and co-chair of the Higher Education Initiative in Russia for the MacArthur Foundation

As the former Soviet Union rejoined the global community, politics and geography were not the only areas of dramatic transition. To compete in the ever-changing scientific and economic environment, Russia had to rebuild its higher education and research infrastructure into a more integrated, interdisciplinary form. And, to be truly effective, a new model would need full buy-in by the local scientific community. Since 1998, the Russian Ministry of Education and Science, the John D. and Catherine T. MacArthur Foundation, the Carnegie Corporation of New York and CRDF have partnered to develop new Research and Education Centers (RECs), which reintegrate research and education at Russian universities. In 2006 the partnership reached a new milestone with Russia’s decision to expand its higher education efforts using the Basic Research and Higher Education (BRHE) model—a measure of success that prompted the MacArthur Foundation to grant additional funding to enable the joint program to grow to 20 RECs. “What really motivated us was that the initiative for this came directly from the Russian Ministry of Education and Science (MES),” says Dr. John Slocum, director of Migration and Human Mobility and co-chair of the Higher Education Initiative in Russia for the MacArthur Foundation. “It was a clear demonstration that Russia was taking ownership of the program.” In 2005, the MES sponsored its own competition that led to 15 new Ministry-supported centers. The Ministry chose to pattern its competition on BRHE, reflecting years of work by CRDF, the MacArthur Foundation, the Carnegie Corporation of New York, and the Russian science and education community.

“BRHE has demonstrated that it can stay viable in Russia,” he said. “The program itself may evolve into a permanent part of the way that Russian science and higher education is conducted.”

Bridging Science and Solution

“It’s been rewarding to see how well the U.S.-based CRDF team works with its counterparts in Moscow, and how well CRDF in Russia works with the Russian Ministry of Education and Science,” Slocum said. “All of the linkages in this institutional chain are very effective, very responsive.”

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Activity Report 2006

2006

2006

CRDF Clients**

Grant Dispersal

28.92%

Non-Profit/NGO 21%

Biological, Biomedical and Behavioral Sciences

6.98%

3.47%

35% For-Profit

Electrical, Material and Manufacturing Sciences

11.21%

Geological Sciences

Research

17.44%

U.S. Government

Chemistry

Physics and Information Sciences 2.47% Mathematical

17%

4.45%

Other

13.28% Travel/Training/Fellowships 11.79% Equipment

Universities

27%

Total: $10,058,378.68 2006

2006

Activity by Program (Dollar Amount)

Where we work

Russia Ukraine Georgia Azerbaijan Latvia Kazakhstan Lithuania Estonia Kyrgyzstan Moldova Uzbekistan

1.6%

13.7%

27.4%

29.5%

27.7%

Indonesia

USA

Armenia

Annual Report 2006

Libya

Centers & Institution Building Cooperative Grants Nonproliferation Industry Middle East and North Africa All statistics are accurate as of December 31, 2006. **Grouped by percentage of total number of clients.

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Jordan

Iraq Egypt

U.A.E.


Financial Statement 2006

Statement of activities for the year ended December 31, 2006 Temporarily Restricted

Unrestricted Revenues: Grants and Contracts Interest and Investment Income Grant Assistance Program Net Assets Released

$

Total Revenues Expenses: Program Expenses: Centers & Institution Building Cooperative Research Grants Industry Non-Proliferation Middle East & Northern Africa

5,814,164 2,838,447 1,971,425 17,510,050 28,134,086

$

11,099,997 191,191

2006 TotalUnaudited

$

-17,510,050 -6,218,862

16,914,161 3,029,638 1,971,425 0 21,915,224

5,889,209 5,494,458 2,738,254 5,418,121 316,860

5,889,209 5,494,458 2,738,254 5,418,121 316,860

Total Program Expenses

19,856,902

19,856,902

Grant Assistance Progam Total Program Expenses

1,229,615 21,086,516

1,229,615 21,086,516

General Administration

4,285,626 25,372,143

4,285,626 25,372,143

Total Expenses

2,761,944

-6,218,862

-3,456,917

Net Assets At Beginning of Year

7,373,617

39,185,312

46,558,929

Net Assets At End of Year

$

10,135,561

$

32,966,405

$

43,102,012

*The information presented here is drawn from the 2006 unaudited financial statements of CRDF, which were prepared in accordance with generally accepted accounting principles. The audit report by McGladrey & Pullen, LLP will be presented to the CRDF Board of Directors at its June 2007 meeting.

Bridging Science and Solution

Change In Net Assets

27


Board of Directors

Advisory Council

Dr. Gloria Duffy Chair

Dr. Kenneth W. Rind

Ambassador James F. Collins

Ambassador Thomas R. Pickering

President and CEO

General Partner

Director and Senior Associate,

Senior Vice President

Commonwealth Club of

Israel Infinity Venture

Diplomat in Residence

International Relations

California

Capital Fund

Carnegie Endowment for

The Boeing Company

International Peace Dr. John H. Moore Vice Chair

Dr. Marjorie Senechal

President Emeritus

Louise Wolff Kahn Professor in

Dr. Sidney B. Drell

Dr. Frank Press

Grove City College

Mathematics and History of

Senior Fellow

Principal

Science and Technology

Hoover Institution

The Washington Advisory Group

Ms. Dona L. Crawford

Smith College Ms. Susan Eisenhower

Dr. Peter Raven

Lawrence Livermore National

Dr. Albert R. C. Westwood

President

Director

Laboratory

Vice President Emeritus

Eisenhower Institute

Missouri Botanical Garden

Dr. Irma Gigli

Dr. Loren R. Graham

Dr. Gerson S. Sher

Director, Center for Immunol-

Professor of History and Science

President of the United States Industry

ogy & Autoimmune Diseases

Massachusetts Institute of Technology

Coalition, Inc., and Founding President of

Associate Director, Computation

Sandia National Laboratories

CRDF

University of Texas Health Science Center at Houston Ms. Rose Gottemoeller

Dr. David A. Hamburg President Emeritus

Dr. Yoram Shoham

Carnegie Corporation of New York

Director Midway Resource International

Director Carnegie Moscow Center Mr. Fred L. Johnson

Dr. Siegfried S. Hecker Senior Fellow and former Director

Dr. Robert M. White

Los Alamos National Laboratory

Principal The Washington Advisory Group

Chairman Santa Fe Technologies, Inc.

Dr. John P. Holdren Teresa and John Heinz Professor of

Dr. David Kay

Environmental Policy

Senior Fellow

Harvard University

Potomac Institute for Policy Studies

Dr. Leon Lederman

Annual Report 2006

Nobel Laureate and former Director

28

Dr. Victor Rabinowitch Sr. Vice President (Retired), The John D. and Catherine T. MacArthur Foundation

Fermi National Accelerator Laboratory


Funders and Partners 2006 CRDF Funders

Ministry of Education and Science, Ukraine

of CRDF events in 2006:

CRDF wishes to thank the following U.S. government

Moldovan Research and Development Association

The Hon. Richard Durbin, United States Senate

agencies, private foundations and corporations for their

National Academy of Sciences of Armenia

The Hon. Roscoe Bartlett, House of Representatives

grants and financial contributions to CRDF in 2006.

National Foundation of Science and Advanced Tech-

The Hon. Joseph Crowley, House of Representatives

nologies, Armenia

The Hon. Wayne Gilchrest, House of Representatives

Organisation for Economic

The Hon. Marcy Kaptur, House of Representatives

U.S. State Department The John D. and Catherine T. MacArthur Foundation

Co-operation and Development

The Hon. Barbara Lee, House of Representatives

Carnegie Corporation of New York

Royal Scientific Society, Amman, Jordan

The Hon. Sander Levin, House of Representatives

U.S. National Institutes of Health

Russian Academy of Sciences

The Hon. Donald Manzullo, House of Representatives

U.S. National Science Foundation

Russian Foundation for Basic Research

The Hon. Betty McCollum, House of Representatives

U.S. Defense Threat Reduction Agency

The U.S. Russia Center for Entrepreneurship

The Hon. Jim McDermott, House of Representatives

U.S. Centers for Disease Control and Prevention

Yerevan State University

The Hon. Tim R yan, House of Representatives

National Innovation Fund, Kazakhstan

The Hon. Curt Weldon, House of Representatives

Ford Foundation

U.S. Non-Governmental Organizations:

Bechtel National, Inc.

American Social Health Association

Monsanto Company

Armenian Engineers and Scientists of America

Embassy Partners:

Armenian Professional Society

Embassy of the Republic of Armenia

CRDF Partners

ARPA Institute

Embassy of Azerbaijan

CRDF wishes to thank the following organizations that

Cuyahoga Community College

Embassy of Georgia

partnered with CRDF to carry out a program activity or

Friends of Armenia

Embassy of the Republic of Iraq

event in 2006.

George Mason University

Embassy of the Hashemite Kingdom of Jordan

Global Health Council

Embassy of the Republic of Kazakhstan

U.S. Government Partners:

International AIDS Vaccine Initiative

Embassy of Kyrgyz Republic

U.S. Department of Energy

Kent State University

Embassy of Latvia

Ohio Department of Development

Northern Virginia Technology Council

Libyan Liaison Office

Ohio Convention and Visitor’s Bureau

Embassy of the Republic of Lithuania

Foreign Partners:

Program for Appropriate Technology in Health

Embassy of the Republic of Moldova

Academy of Sciences of Azerbaijan

Transatlantic Partners Against AIDS

Embassy of Pakistan

Academy of Sciences of Moldova

University of Washington

Embassy of Poland

House Manufacturing Caucus

Embassy of the Russian Federation

Arab Science and Technology Foundation, Sharjah, U.A.E. Corporate Partners:

Embassy of Tajikistan

Estonian Science Foundation

5iTech, LLC

Embassy of Ukraine

Foundation for Assistance to Small Innovative Enter-

Benesch,Friedlander, Coplan & Aronoff LLP

Embassy of the United Arab Emirates

prises (FASIE), Moscow, Russia

General Electric

Embassy of the Republic of Uzbekistan

Georgian National Science Foundation

JumpStart, Inc.

Georgian Research and Development Foundation

Parker-Hannifin Corporation

CRDF would also like to gratefully acknowledge each

Lithuanian State Science and Studies Foundation

Squire, Sanders & Dempsey LLP

of the U.S. Embassies in the countries in which we work

Ministry of Education and Science, Armenia

Steris

for their continued support. CRDF would also like to thank the many individual scientists and engineers

Ministry of Education, Azerbaijan

who volunteer their time and expertise for our merit-

Ministry of Education and Science, Georgia

Congressional Partners:

Ministry of Education and Science, Moldova

CRDF wishes to thank the following Congressional part- based review programs to ensure the quality of the

Ministry of Education and Science, Russia

ners for serving as co-sponsors and/or honorary chairs

work that CRDF supports.

Bridging Science and Solution

Azerbaijan National Science Foundation

29


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