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San Jose, Calif.--March 19, 2003--Small start-up organizations are the linchpin of nanotech innovation. Although investors have been cautious of late about funding anything, nanotech companies will rely on venture capitalists and government agencies to spur advances.
Although investors are not taken in by the hype surrounding the incredible potential of this technology, they realize that the market, with fewer competitors, will be profitable for those with more stable business models and valuable products for many industries.
University research, the fountainhead of many start-ups, has been primarily fueled by government grants. Despite the increased budget for research and development (R&D) programs, the global economic slowdown has pressured governments to regulate monetary allowances by curtailing discretionary funding.
"Global nanotechnology R&D investment reported by government organizations has increased approximately five times in the last five years between 1997 and 2002 and currently stands at about $4 billion," says Technical Insights Analyst Girish Solanki. "No less than 30 nations have initiated national activities in this field."
Consumers will demand competitive advantages over existing techniques and tools to justify the high retail price, which is a result of high development costs. Large customers might overlook the cost factor if the benefits are substantial but more enticing features will be required to persuade the smaller ones to invest in this technology. To penetrate the market, nanotech companies will have to develop more cost-competitive and readily implementable products.
"Some nanotechnologies are so novel that there exists little published information," says Solanki. "Suppliers will have to educate potential clients about the technology as well as its benefits."
Apart from promoting the technology, the campaigns will also have to work toward improving public knowledge about the implications of the use of these molecular-sized products with regard to people and the environment. Participants will have to work closely with customers and devise tactics to provide value additions to their existing processes.
New analysis by Technical Insights, a business unit of Frost & Sullivan (www.Technical-Insights.frost.com), Nanotechnology Industry Impact Research Service, provides valuable insight into the effect of nanotechnology on the industry. It identifies key markets, applications, developers, and obstacles in the way of commercial success.
Technical Insights will hold a conference call at 1:00 p.m. (EST)/ 10:00 a.m. (PST) on March 26, 2003 to provide a summary and analysis of the latest developments in nanotechnology. Those interested in participating in the call should send an email to Julia Paulson at jpaulson@frost.com with the following information for registration:
Full name, Company Name, Title, Contact Tel Number, Contact Fax Number, Email. Upon receipt of the above information, a confirmation/pass code for the live briefing will be emailed to you.
Frost & Sullivan is a global leader in strategic growth consulting. Acquired by Frost & Sullivan, Technical Insights is an international technology analysis business that produces a variety of technical news alerts, newsletters, and reports. This ongoing growth opportunity analysis of nanotechnology is covered in Nanotech Alert, a Technical Insights subscription service, and in Nanoelectronics, a Frost & Sullivan Technical Insights technology report. Technical Insights and Frost & Sullivan also offer custom growth consulting to a variety of national and international companies. Executive summaries and interviews are available to the press.
Nanotechnology Industry Impact Research Service D254
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Pramila Gurtoo
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