Private Spending on Nano Exceeds Government Spending for First Time

Posted on July 7, 2009 by John C. Monica, Jr.

Chemical Business NewsBase recently published an article comparing global private funding to government funding for nanotechnology research, development, and commercialization. The article cites Lux Research figures indicating that private funding for nanotechnology reached $9.6 billion in 2008, while government investment was $8.6 billion. According to the article, this was the first year that private spending exceeded public spending. Lux also estimates that nanotechnology-enabled products will constitute a $3.1 trillion market by 2015.


It is interesting to remember that a decade ago, advocates for dramatically increased federal funding of nanotechnology efforts argued that once nanotechnology is firmly established as a field of commerce, federal investment would be dwarfed by private research and development which was estimated would be 10% of ultimate sales revenues. Advocates of the National Nanotechnology Initiative took the position that the federal government should stimulate and support basic nanotechnology research until such time as private commercialization takes root at this level. Annual global government research, development, and commercialization was then estimated at a mere $432 million.

 

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That's a Big Number

Posted on December 10, 2007 by Michael E. Heintz
Here's a little math for your Monday morning.  Late last week it was reported that total nanotechnology investment is expected to be worth $1 trillion by 2015.  Yes, that's "trillion."  With a "T."

At Bangalore Nano 2007, Keith O'Nions, director for general science and innovation for the Department of Innovation, University & Skills in the United Kingdom made the following statement, "Nanotechnology is of all disciplines and its provides a global opportunity of more than $1 trillion by 2015."  He cited as an example the £100 million expended by the United Kingdom, including 23 centers and more than 1300 nanotechnology related companies in the UK alone.

This leads me to a few thoughts.  First, wow, that's a big number in a short period of time.  One trillion dollars in six years.  Granted, this number includes all spending on nanotechnology across all sectors, worldwide, but it's still big.  Second, this spending and research and development will proceed with or without regulatory oversight, which is the question we spend a lot of time on here.  Insurance companies are already starting to think about these issues, for better  (see the oft-cited Swiss re article here) or worse (see John's recent post on advertising here).  It makes me wonder when, and in what form, concrete regulations will begin to appear (let me take this opportunity to digress a little and say regulation for the sake of regulation is not useful or helpful, and stakeholders must be involved in those discussions).  Third and finally, this number is only going to get bigger, which is, I think, good.  The potential benefits and advances that nanotechnology holds will only be discovered through meaningful research, development, and discussion.

Oh, and wow, that's a big number.
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