The Nanotech Economy

Tim Harper, Cientifica Ltd, London• Cientifica is a world leader in providing consulting, as well as
technical, scientific and industrial information on emerging
technologies, with a specialization in nanotechnology;• Cientifica combines a profound knowledge of science andbusiness with an advanced data management system;• Cientifica provides companies, governmental institutions andventure capitalists all over the world with accurate andcritical business information.

London based Cientifica Ltd• Provides contract research and development
outsourcing via facilities in India and Singapore;• Provides global nanotechnology business intelligenceand consulting services to industry and investors
worldwide;• Organises world class global events such as the World
Nano-Economic Congress;• Coordinates EU research programs from electronics totoxicology, regulation and legislation;• Provides expert advice to governments and companies
worldwide.

The Benefit of Understanding ofthe ScienceThink Globally…

• Offices

Offices

Associates

Global Headquarters (London)

…Act Locally

Cientifica Consulting Clients

Nano Activity?

Source: Cientifica Ltd

Source: Cientifica Ltd

Nano Numbers?

Source: Cientifica LtdSource: Cientifica Ltd

Source: Cientifica Ltd

Source: Cientifica Ltd

Source: Cientifica Ltd

Source: Cientifica Ltd

Nano Products

Nano Products

Nano Products

Shanghai BEST Industry& Commerce Co, China

Nano Products

Shantou Tongsheng Co., Ltd,China

Nano Products

Hantra Corporation, Korea

Nano Products

Tropical Products LtdThailand

Samsung Goes Nano

Samsung Goes Nano

The Most Crucial Product - Tools!
• Without the ability tomeasure and manipulate
nanotech would not exist• Tools will help nanotech
into the marketAND• Allow productmanufacturers to maintainyields and qualityGold grain boundary sample and image
courtesy FEICharacteristics of Current Nano
Products• ‘nano’ adds value by adding a nanomaterial toan existing product• Amount and value of the ‘nano’ is nano
– No new products visible– No new markets created– Nobody has been disrupted– Despite wild predictions of a ‘nano revolution’• Why?

The Evolution of Materials
10,000 BC 1000 BC

Stone & Wood

Iron01800

CementSteel1900’s

2000

2010

Polymers
Nano
Bottom&materials &Up
Composites
Nano
Designcomposites?

Adapted from Herrmann, W. Chem. Eng. Technol. 21(7), 549 (1998)

Knowledge Based Applications• What do nanotechnologies allow us to dothat is new?
• Can we apply them to existing processes?
• Can we generate new paradigms?
• Look for the FedEx not the Webvan!

Nano Markets?
• Why have we not seen an ‘nanotech
revolution?’• Why will nanotech companies worth over$100 million close down this year?
• How far is it to the trillion dollar market?

Taking Advantage of Nanotech• Any product or process can be nano-enhanced• Adoption however will depend on :– Price competitiveness– Performance improvements– Stability, consistency and quality of supply– Compatibility with existing industrial processes– Sufficient regulatory cover-HSE• Industry is technology agnostic• Many existing technologies are already highly advanced• Nanotech has many hurdles to surmountIs the factored impact on the economy more orless than other technology?
• In many cases, nanotech IS othertechnology, or is a bolt-on toexisting tech• c3500 BC invention of the wheel
in Mesopotamia• 1844 Goodyear invents
vulcanized rubber• 1887 Dunlop invents pneumatictyre• 1904 India Rubber add carbon
black for reinforcement• 1946 Michelin invents steel
radial• >2010 Carbon nanotube
incorporation…?

Source: Cientifica Ltd

Source: Cientifica Ltd

Too EarlyThe Sweet Spot

Too Late

Source: Cientifica Ltd

Funding Year on Year Change

Source: Cientifica Ltd

The Pioneers Get the Arrows…
• Many ‘nano’ companies funded in 2000-2003 were;– Science projects rather than product development– Funded by VCs looking for the next wave
– Unaware of their markets and the barriers to entry• As a result, some of them are having to raise more money at
reduced valuations, holding fire sales or closing down

An Example: Optiva•••••

Raised $41.5m in venture capital for flat
panel display polarizers
Attempted to break into a market 85%
controlled by two Japanese companies
Technological problems delayed the initialproduct
The market found other solutions andmoved onAssets sold for $2m to Nitto Denka

From Scattergun to Strategy• Many economies have ‘nanotech’ funding
programs but…
• There will never be a ‘nanotech industry’ so…
• Most of the funding goes on curiosity driven
academic research or has no long term
economic effectCreating an Economic Effect• Where does Japan want to be in 10 yearstime?
• Specify objectives and competitive threats• How can nanotech help us?
• Focus funding where it will help meet thestrategic and economic goals

Conclusion• Nanoscience is becoming nanotechnology• Talk is about CNTs, but real action is in medical
and pharma applications• Products we are seeing now are just the tip of theiceberg• Now is the time to start taking a serious look at theapplications of nanotechnologies• Japan can take advantage by getting smarter

Tim Harper - Cientifica Ltd.
London - Mumbai - Singapore
www.cientifica.com