Nanotech Is Living Large

Lux expects things to really start taking off in the next couple of years. By 2008, nanotech R&D spending will more than triple, hitting $12 billion. The number of companies with initiatives specifically structured toward nanotechnology will double to 290, and the number of employees devoted to nanotechnology will rise more than sixfold as scientists and engineers are joined by sales and manufacturing staff.

"Between 2006 and 2008, nanotechnology's materials, tools and processes will become commonplace in many industries; by 2010, they'll be de rigueur," wrote Lux senior analyst Mark Bunger. "Competitors will grow smarter about which products incorporate nanotech, suppliers choosier about who gets their newest materials and buyers more demanding."

Even more significantly, more products will approach the markets, especially in the life sciences and electronics industries. Some 150 "nano-enabled cancer treatments" are in clinical trials, Bunger wrote. "Add to that applications like Unilever's functional foods, DuPont's automotive coatings and Hewlett-Packard's printable electronics that will be in-market, and more than $150 billion in goods will incorporate emerging nanotechnology -- triggering a cascade of operational effects like the need for worker retraining and new supplier selection."

Of course, some industries will be more affected by a wave of nanotech development than others -- chemical and semiconductor makers, in particular, but also metals, defense and pharmaceuticals. Many, from advertising to finance to travel, will feel the barest impact.

But others, such as automakers and food and beverage companies, will have a significant, if indirect, impact from nanotech innovations. Honda and Toyota, for example, are both hoping to gain a competitive edge with nanotech investments.

Still, Lux's report points out, not all of the companies that will be heavily affected by new nanotechnology are preparing themselves. The efforts of many firms "are often a mishmash of grassroots evangelism, underfunded volunteer projects, investigatory committees and aimless partnerships."