The machine tool and tool industries play a crucial role in the economic development of the USSR, and therefore great efforts have always been made to increase the efficiency and output of these industries. The National Tool Research Institute (VNIIinstrument) was set up in 1944. During the period 1944-50 a wide range of carbide-tipped tools was produced, and high-speed cutting tools were developed for use in transfer lines. As well as developing new tool designs and materials, the Institute has been concerned with the development of tool production technology. A butt-welding process with preheating of the blanks was developed for high-speed steel tooling, giving savings of several thousand tons of steel. The Institute has devoted much attention to the development of new and cheaper steels for the mass production of cutting tools.