The Key to Success in
the Nanotechnology BusinessFebruary 14, 2017
Innovation Engine Inc.
Mutsunori Sano, President and CEO
Copyright 2017 Innovation Engine, Inc. All rights reserved

17 years since the boom –The future direction of nanotech◆ January 2000 – NNI in the US sparks the boom
◆ 2001 – The start of the nanotech boom in Japan

2000–2007

The dream of nanotech

2008–2014

The challenging period of nanotech

2015–

The real business of nanotech

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The dream of nanotech (2000–2007)◆ Nanotech to change the world

The US promoted nanotech as a symbol of
the resurgence of the manufacturing industries
CNT, fullerene, self-assembly, etc. become
the stars of nanotech
In Japan, “1,000 university-based startups”
plan becomes the engine of growth, andventure capital becomes the fuelCopyright 2017 Innovation Engine, Inc. All rights reserved3

The challenging period of nanotech(2008–2014)◆ Nanotech wakes up from the dream

Bankruptcy of Lehman Brothers in 2008 → Crisis in
Greece and the Middle East in 2010 → The Great East
Japan Earthquake in 2011 → Crisis in the EU andStrong yen in 2012
The enthusiasm of major enterprises shrinks
Nanotech startups’ chances of making profits fade away
Venture capital is frozen
Nanotech firms take a hit and go through downsizing
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The real business of nanotech (2015–)
Amidst downsizing, nanotech firms becomeaware of their mission
・ Core competencies (real strengths)
・ Positioning (where to make money)
・ Business models (how to make money)
Nanotech moves closer to people’s needs
・ From technology development to solution
development
・ From “mastering technology” to“combining technologies”
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5

Aiming for a “10-2” business
Creating nanotech products that achieve 1 billion yen in sales
and 200 million yen in operating profits
High-performance
nanomaterial
Photonic crystal

Nanoimprint
Biochemistry
Nano inkjet

Nano surface
finishing/decoration

MEMS/NEMS

Nanocoating

High-speed AFM

Advanced medicalmaterials
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6Structure of a business that moves closer
to people’s needs
Capture needs directly
What should be provided are solutions
NanotechNano Measurement

Nano Processing

NanomaterialSolutions

Customer needs
Needs ofDevelopers
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Needs ofProducers

Needs ofConsumers
7Structure of a business that moves closer
to people’s needs<Case Study> SCIVAX (http://www.scivax.com/)• Nanoimprint started as an alternative technology for semiconductor

lithography.
• The company responded by contracting the production of prototypes

from clients and pulled in various needs for nanoimprint.
• As a result, the company discovered that there was high demand fortechnologies to deal with enlargement and curved surfaces even incases where requirements for precision were not very rigorous. By
developing technologies to meet those needs, SCIVAX are succeedingin developing new solutions.
• A few years ago, the company have raised a total of 1 billion yen fromthe Innovation Network Corporation of Japan and other sources andare moving to volume production. Moreover, the company are now
making business development plan rapidly, by collaborating with
Toppan Printing Co.Ltd, one of the major printing companies in Japan.
Copyright 2017 Innovation Engine, Inc. All rights reserved8Business models based on “intelligence”◆ Source of profits can be found in “intelligence”

Building intelligence-led business models
Utilizing partners for production, sales and capital<Case Study> NanoCarrier (http://www.nanocarrier.co.jp/)•As a pioneer of micellar nanoparticles technology, NanoCarrier was established as a
medical product development company utilizing drug delivery systems. In 2009, it
was listed on the TSE Mothers market.

•The source of the company’s technology is research by world-class researchers,
Professor Kazunori Kataoka of the University of Tokyo and Professor Teruo Okanoof Tokyo Women's Medical University.

•NanoCarrier has reduced clinical trial costs of drug development through tie-ups
with major corporations including Nippon Kayaku and Kowa.

•In the area of medical material development, the company has capital tie-ups andconducts joint development with Shin-Etsu Chemical.

•Based on all those achievements, the company have been listed in TSE Mothers in2008, which value is now 350 million dollars.

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From individual commissioned production
to a mass production system◆ A mass production system based on “intelligence”

Bringing in production technology professionals at an early stage
Expanding the target market: Needs of developers → Needs of producers →Needs of consumers<Case Study> Photonic Lattice (http://www.photonic-lattice.com/)•A company established with “photonic crystal” technology developed by Professor
Shojiro Kawakami of Tohoku University as its core technology.

•The company develops and manufactures double refraction・phase difference
evaluation systems, polarization cameras and photonic crystal elements.

•Previously, photonic crystal slabs were fabricated using electron beam lithography andas each slab was created individually, it was extremely costly.

•The company introduced a production system using nanoimprint technology instead oflithography to cut costs substantially and succeeded in moving to volume production
system.

•At present, total sales amount of the company is 3 million dollars and are making profit.
They are now expecting to develop further in the field of measurement instruments forlenz distortion, and communication devices.

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Cultivating markets globally◆ Nanotech moves into the global market
Making nanotech into products that can’t be found anywhere else in the world
Aiming for sales in the global market from the startup stage<Case Study> Research Institute of Biomolecule Metrology (http://www.ribm.co.jp/)• In the 1990s, the company was founded on technology developed in the Biomolecule

Visualization Project at the Joint Research Center for Atom Technology (JRCAT) in the former
Agency of Industrial Science and Technology (the present Advanced Industrial Science andTechnology: AIST). It successfully developed the High-Speed Atomic Force Microscope (HSAFM), which produces topographical video images at a rate of 20 frames per second (those byother companies produce a single frame in about 2-3 seconds).
• The technology allows the movements of antibodies and DNA to be observed in real time andis evaluated highly by researchers in the field of pharmaceutical development andbiotechnology.
• Since its release, the HS-AFM was first sold in Europe and the United States. Later, as its

reliability became widely known, it was introduced to leading research institutions anduniversities in Japan.
• At present, the product is being improved and the company is collaborating with a major

measurement instruments manufacturer in preparation for volume production.
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Aiming to create an industry

Realizing dramatically improved cost
performance
Creating new value
Generating new industries

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