Nanotech R&D touches $8.6 b

SAN FRANCISCO: Worldwide research and development spending in the emerging field of nanotechnology should rise about 10 percent this year to $8.6 billion, stated a research firm.

Corporations should spend more than $3.8 billion on nanotechnology, the science of building devices on the molecular or atomic scale, reported Lux Research Inc., a New York-based research and consulting firm focused on nanotech. Venture capital spending on nanotechnology should be about $200 million.

Government remains the leader in nanotechnology spending with an estimated $4.6 billion in research and development to be spent this year, according to a yearly report on the field by Lux.

Despite a new U.S. law that will inject $3.7 billion into nanotechnology research over four years, the private sector should outspend the public sector in the field starting next year, Lux reported.

The growth forecast adds to a heated debate about the potential of nanotechnology, which has been both promoted as the "next big thing" and derided as hype. Environmentalists have even attacked nanotechnology as potentially dangerous, saying it could introduce tiny toxic particles into the air.

Skeptics found support for their view earlier this month when one of the most closely watched nanotechnology companies, Nanosys Inc., withdrew plans for an initial public offering because of what it called "adverse market conditions."

Nonetheless, Lux Research said evidence that nanotechnology is a major opportunity for companies and investors is abundantly clear. Top nanotech start-up companies focusing on specialty chemicals, pharmaceuticals and semiconductors are reporting $10 million to $20 million in annual revenue, it said.

Applications such as a "nano-enhanced" coatings to protect ceramic surfaces from stains and scratches are quickly making their way into the marketplace, Lux reported.