Science, Technology, and Society

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The Impact of Nanotechnology in Business and Economy

Module 007 – The Impact of Nanotechnology in

Business and Economy

This module contains the following topics:

1. Impact of Nanotechnology on Business
2. Effects of Nanotechnology on Economy

Impact of Nanotechnology on Business

The fundamental characteristics of nanotechnology have led analysts to suggest that it may
constitute a basis for long-term productivity and economic growth. It may also help to
address pressing national and global challenges in areas such as health care, energy, water
and climate change – you'll find plenty of examples here in our Nanowerk pages.
While sites like Nanowerk and others focus more on traditional science and technology
issues that highlight the broad-based nature of nanotechnology, others like consultants and
analysts go wild in predicting huge markets (hey guys – are we still on for a $3 trillion-
dollar market anytime soon?) and contributions to entrepreneurship and job creation.
Between those two areas, however, it is hard to obtain reliable information in terms of the
implications for nanotechnology companies and nanotech business in general. But it is
exactly this information that governments would need to determine how they should
structure their innovation policies.
– Nanotechnology is an enabling technology (or set of technologies) and the company case
studies show that this feature is a major reason for their entry into the field.
Nanotechnology allows for both the improvement of existing and the development of
completely new products and processes, and sometimes new services as well. Companies
often experiment with multiple applications at the same time, many of which are still in the
research phase.
– Nanotechnology may best be described as a "science-based and demand-driven field".
While all of the case study companies undertake in-house R&D, collaboration with
universities and "star scientists" are also important sources of innovation and knowledge,
especially for small companies. Larger companies in relatively mature nanotechnology
subareas appear to focus more on applications which are driven by market demand and
tend to collaborate with a broader range of organizations to leverage their in-house R&D.
– Nanotechnology mainly affects the R&D and production activities of the case study
companies. Many of the smaller companies focus exclusively on nanotechnology, while the
larger ones typically blend nanotechnology with a range of other technologies. In the larger
companies it is thus difficult to single out the share of nanotechnology in total labor costs,
R&D expenditure, production costs, capital spending and sales.

Course Module
– The larger companies in the sample have typically been involved in nanotechnology for
many years and seem well placed to assimilate nanotechnology due to their established
critical mass in R&D and production, their ability to acquire and operate expensive
instrumentation and to access and use external knowledge. The relative strength of larger
companies in the early phases of nanotechnology developments runs counter to what the
traditional model of company dynamics and technology lifecycles would predict where
smaller, younger companies are generally considered more innovative.
–The case studies illustrate that nanotechnology is a complex field owing to its dependency
on various scientific disciplines, research/engineering approaches and advanced
instrumentation. Further, many nanotechnology sub-areas are in an early, immature, phase
of development. These features of nanotechnology can often create barriers to entry
especially for smaller companies which have limited human and other resources. They also
contribute to the poor process scalability of nanoscale engineering during the transition
from R&D to pilot and industrial scale production.
– Difficulties arise for recruiting human resources, especially for R&D and production
activities. The need for employees, or so-called gatekeepers, who combine specialist and
general knowledge (knowledge integration) and can manage interdisciplinary teams is also
a challenge.
– Challenges to funding R&D and related activities are often mentioned, especially by
business start-ups. The poor process scalability of R&D, which raises costs and prolongs
new product development times, can make nanotechnology less attractive to investors.
Uncertain regulatory environments and public perceptions of nanotechnology's
environmental, health and safety (EHS) risks can also influence R&D funding.
– The novelty of nanotechnology, the established interests of stakeholders, and difficulties
that companies can have in communicating the value proposition of applications to
potential customers (e.g. other companies), makes their entry and positioning in value
chains harder. The challenge is even greater for smaller companies that experiment with
multiple applications and have to monitor many different industries and business
environments.
– Intellectual property rights (IPR) may become an issue as commercialization progresses
and nanotechnology matures as there is already a very wide range of patent claims, and the
possible formation of patent thickets (interrelated and overlapping patents), which could
contribute to barriers to entry for companies.
– The potential for overreaction to both actual and perceived EHS uncertainties and risks,
combined with regulatory uncertainties, complicates the business environment for
companies. Global harmonization of future EHS regulations is considered important.
A similar project was conducted by dandolopartners with their study of business’
understanding of and attitudes towards nanotechnology.
The report contains findings from a component of that research base – in-depth interviews
with 15 representatives from the business community. Businesses interviewed ranged
from small businesses to multinational companies, industry associations and local
government.
Key Findings
1. Companies are generally aware of nanotechnology and positive about its
potential benefits.
 Science, Technology, and Society
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The Impact of Nanotechnology in Business and Economy

2. Overall, businesses have few concerns about nanotechnology, but are wary of
unknown health and safety side-effects.
3. For most companies, nanotechnology is a ‘watching brief’: they believe its impact
will not be felt in the short term, except perhaps in ICT (Information and
Communications Technology) and electronics. It is seen as offering a particularly
strong competitive advantage for companies operating in highly competitive and
mature markets.
4. Local companies see themselves predominantly as users of nanotechnology,
rather than developers of nanotechnology
5. Companies believe there is a clear role for government to support
nanotechnology development
The full details of the study are in the report that can be accessed through this link:
https://industry.gov.au/industry/IndustrySectors/nanotechnology/Publications/Docume
nts/Nanotechnologyandthebusinesscommunity2005.pdf

Effects of Nanotechnology on Economy

A recent review article in Environmental Health ("Opportunities and challenges of
nanotechnology in the green economy") examines opportunities and practical challenges
that nanotechnology applications pose in addressing the guiding principles for a green
economy.
The authors provide examples of the potential for nanotechnology applications to address
social and environmental challenges, particularly in energy production and storage thus
reducing pressure on raw materials, clean-up technologies as well as in fostering
sustainable manufactured products. The areas covered include:
 nanomaterials for energy conversion (photovoltaics, fuel cells, hydrogen storage
and transportation)
 nanomaterials for energy storage
 nanomaterials for water clean-up technologies
 nanomaterials for the construction industry
These solutions may offer the opportunities to reduce pressure on raw materials trading on
renewable energy, to improve power delivery systems to be more reliable, efficient and
safe as well as to use unconventional water sources or nano-enabled construction products
therefore providing better ecosystem and livelihood conditions.
Conflicting with this positive message is the growing body of research that raises questions
about the potentially negative effects of engineered nanoparticles on human health and the
environment. This area includes the actual processes of manufacturing nanomaterials and
the environmental footprint they create, in absolute terms and in comparison with existing
industrial manufacturing processes.
Consequently, the review aims to critically assess the impact that green nanotechnology
may have on the health and safety of workers involved in this innovative sector and
proposes action strategies for the management of emerging occupational risks.

Course Module
 The authors propose action strategies for the assessment, management and
communication of risks aimed to precautionary adopt preventive measures including full
lifecycle assessment of nanomaterials, formation and training of employees, collective and
personal protective equipment, health surveillance programs to protect the health and
safety of nano-workers.
Concluding, the scientists emphasize that green nanotechnology should not only provide
green solutions, but should also 'become green' in terms of the attention paid to
occupational safety and health. In this context, a full democratic discussion between
expertise should be pursued to carefully balance the benefits of green nanotechnology and
the potential costs for the society, particularly in terms of environmental, public and
occupational health. This careful consideration will maximize environmental and societal
benefits, health gains and cost savings and will increase the likelihood of further
investment and sustainable development of this promising technological field.

References and Supplementary Materials

Online Supplementary Reading Materials
1. The Strategic Impact of Nanotechnology on the Future of Business and Economics;
http://www.globalfuturist.com/dr-james-canton/insights-and-future-
forecasts/stratigic-impact-of-nanotechnology-on-business-and-economics.html;
November 7, 2017
2. Nanotechnology business – The impact of nanotechnology on companies;
https://www.nanowerk.com/spotlight/spotid=19620.php; November 7, 2017
3. Nanotechnology and business opportunities: scenarios as awareness instrument;
http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.93.5222&rep=rep1&type
=pdf; November 7, 2017
4. Nanotechnology and the business community;
https://industry.gov.au/industry/IndustrySectors/nanotechnology/Publications/Doc
uments/Nanotechnologyandthebusinesscommunity2005.pdf; November 7, 2017
5. Nanotechnology in the ‘green’ economy – opportunities and risks;
https://www.nanowerk.com/spotlight/spotid=38141.php; November 7, 2017
6. Assessing the Economic Impact of Nanotechnology: The Role of Nanomanufacturing;
http://www.internano.org/node/580; November 7, 2017
7. Social and economic aspects of nanotechnology;
http://www.softmachines.org/wordpress/?cat=5; November 7, 2017
8. The Social and Economic Impacts of Nanotechnologies: A Literature Review;
https://industry.gov.au/industry/IndustrySectors/nanotechnology/Publications/Doc
uments/SocialandEconomicImpacts_LiteratureReview.pdf; November 7, 2017