The fusion process alone currently does not achieve sufficient gain (power output over power input) to be viable as a power source.  By using the excess neutrons from the fusion reaction to in turn cause a high-yield fission reaction (close to 100%) in the surrounding subcritical fissionable blanket, the net yield from the hybrid fusion–fission process can provide a targeted gain of 100 to 300 times the input energy (an increase by a factor of three or four over fusion alone).  Even allowing for high inefficiencies on the input side (i.e. low laser efficiency in ICF and Bremsstrahlung losses in Tokamak designs), this can still yield sufficient heat output for economical electric power generation.  This can be seen as a shortcut to viable fusion power until more efficient pure fusion technologies can be developed, or as an end in itself to generate power, and also consume existing stockpiles of nuclear fissionables and waste products.
In the LIFE project at the Lawrence Livermore National Laboratory LLNL, using technology developed at the National Ignition Facility, the goal is to use fuel pellets of deuterium and tritium surrounded by a fissionable blanket to produce energy sufficiently greater than the input (laser) energy for electrical power generation.  The principle involved is to induce inertial confinement fusion (ICF) in the fuel pellet which acts as a highly concentrated point source of neutrons which in turn converts and fissions the outer fissionable blanket. In parallel with the ICF approach, the University of Texas at Austin is developing a system based on the tokamak fusion reactor, optimising for nuclear waste disposal versus power generation. The principles behind using either ICF or tokamak reactors as a neutron source are essentially the same (the primary difference being that ICF is essentially a point-source of neutrons while Tokamaks are more diffuse toroidal sources).