Nanotechnology Is Gaining Momentum towards Mainstream Acceptance

By Howard Keith Lucas, Nerac Analyst

When it comes to nanotechnology, the market remains highly competitive and is dominated by smaller firms that lead the way in innovation and risk. But that scenario is projected to change as larger global corporations engage newly emerging markets by incorporating a “watch-and-wait approach,” letting smaller firms take the risks associated with R&D and market entry. The big players wait patiently for the winners to emerge, acquire the successful innovators, and reap the commercial benefits.

That was a message heard frequently in New York during the Seventh Annual NanoBusiness Alliance Conference, where business experts, scholars, industry thought leaders, and leading practitioners involved with nanotechnology met to discuss the opportunities and challenges confronting the industry today.

This conference also illuminated the business side of nanotechnology innovations across multiple industry sectors. Nanotechnology is the basis of many breakthroughs in such high-growth areas as energy, advanced materials, next-generation electronics, medical diagnostics and pharmaceuticals. Often compared to the Internet in terms of growth potential, nanotechnology could revolutionize the way individuals live in the future.

Key Driver for U.S. Competitiveness
In the meantime, nanotechnology could be the key to the United States maintaining its competitive edge in the global market. That is why U.S. Rep. Bart Gordon, of Tennessee, a keynote speaker at the conference, is pushing Congress to step up and help the private industry meet the technological challenges of a highly competitive global environment. Citing the National Nanotechnology Initiative Amendments he is guiding through the U.S. House of Representatives, he says the bill will help the United States take advantage of nanotechnology’s potential through increased support for commercialization as well as advancing the public’s understanding of the environmental, health and safety impacts.

Also speaking at the event was Sen. John Kerry, chairman of the Senate Committee on Small Business and Entrepreneurship and also chairman of the Senate Commerce Subcommittee on Science, Technology and Innovation. Sen. Kerry emphasized the important role that small businesses play in ensuring U.S. technological leadership. His belief in the transformational potential of entrepreneurship has led him to champion the Small Business Innovation Research (SBIR) program and the reauthorization of the 21st Century Nanotechnology Research & Development Act in the Senate.

“These keynotes illustrated the importance of a positive policy climate and the federal government’s role in maintaining America’s leadership in nanoscience,” says Sean Murdock, executive director of the NanoBusiness Alliance. “We’re lucky and proud to count these two leaders as nanotech proponents.”

Providing an Overview of Current Work
Also at the conference were representatives from the Organization for Economic Cooperation and Development (OECD), an international organization based in Paris and comprised of the world’s 30 most developed economies. In addition, the United States Council for International Business (USCIB), the American affiliate to the Business and Industry Advisory Committee to the OECD, was there. The two groups hosted a special panel titled “OECD: A Critical Forum for Addressing Nanotechnology Innovation, Application and EHS Concerns” that provided an overview of current work on nanotechnology at the OECD and how it will impact the global development of this emerging technology.

“The nanotech initiatives at the OECD have significant ramifications for everyone working with these emerging technologies,” says Alix Heywood, Policy Manager for Nanotechnology at USCIB. “Business has an opportunity to help shape policy through participating at this early stage. We are delighted that our members are so strongly engaged and enthusiastic.”

Funding and Commercialization
Other keynote presenters addressed R&D funding, commercialization opportunities, emerging applications, market drivers and trends, regulatory oversight, international cooperation and policies towards innovation, and the hurdles impacting the industry:

• Terry Medley, Global Director of Corporate Regulatory Affairs at the DuPont
  Environment and Sustainable Growth Center and co-chair of USCIB Nanotechnology Working Group
• Jim Willis, Division Director, Chemical Control Division, Office of Pollution Prevention and Toxic Substances at the U.S. Environmental Protection Agency and a member of OECD’s Working Party on Manufactured Nanomaterials
• Dr. Terry Taber, Chief Operating Officer, Image Sensor Solutions, Eastman Kodak Company
• Dr. Norbert Reidel, Chief Science Officer, Baxter
• Josh Wolfe, Founding Partner and Managing Director, Lux Capital
• Scott Livingston, founder of The Livingston Group and Managing Director for Axiom Capital Management

Assessing the Regulatory Environment
In terms of the regulatory environment, the timing and extent of oversight will become critical drivers of the competitive landscape, greatly impacting the size of opportunities, the manner in which companies compete, and the risks associated with developing new technologies and competing for customers. While the market presents the potential for players to reap significant revenue and profits, there is uncertainty in the timing and level of regulatory oversight. Because the level and role of oversight is not yet know, companies seeking to invest in nanotechnology should monitor the pulse of the industry closely to make a clear judgments on just how aggressively they wish to dive into this uncultivated and emerging market.