benchmarking u.s. states for economic development from ...americastrust.us/luxresearch.pdf · lux...

113-May-05CONFIDENTIALLux Research Inc. • 645 Madison Avenue, 22nd Floor New York, NY 10022 • 888-589-7373 www.luxresearchinc.com

Benchmarking U.S. States for Economic Development from

NanotechnologyF. Mark Modzelewski

Managing Director, Lux Research Inc.Wednesday, January 26, 2005


Lux Research is the world's premier research and advisory firm focusing on the business and economic impact of nanotechnology and related emerging technologies

Our key staff and board members have:• Introduced nanotech to Wall

Street as an investment theme

• Been instrumental in U.S.nanotech public policy

• Attracted ~ 100 corporations,startups, investors, universities,and public sector bodies as clients

Mark Modzelewski,

Managing Director, Lux

Research; Founder,

NanoBusinessAlliance

Josh Wolfe, Director, Lux Research

President George W. Bush

21st Century Nanotechnology R&D Act Signing, 12/03


We provide clients with advice and data to help them:

• Develop strategies to profit from nanotechnology commercialization• Allocate staff and investment resources • Forecast nanotechnology trends and shifting industry dynamics• Identify and evaluate partners and suppliers• Operate effectively within a changing regulatory environment• Understand the impact of emerging nanotechnology innovations • Structure equitable deal terms• Create recognizable brands and establish market positioning• Identify investment opportunities• Identify potential threats to existing portfolios• Understand market catalysts and how they impact investments


Lux Research sits at the nexus of the nanotechnology field. Our clients gain access to an extended network of the world’s most influential nanotechnology companies, investors, and visionaries

Investors

Nanotechnologystartups

Academicinstitutions

Establishedcorporations

Nanotechnologyassociations

Governmentand public sector


Lux Research assist corporations, financial institutions, and public sector entities with all aspects of their nanotechnology initiatives in three principal ways

• Strategic advisory services– Ongoing relationship between Lux Research and client executives– Continuous stream of proprietary reports driven by exclusive research– Unlimited access to expert analysts for inquiries

• Consulting– Assistance with specific projects that require highly customized research– Focus on senior-level issues with “make-or-break” strategic implications– Extended advisor network provides unequalled breadth and depth

• Reference studies– Annual, book-length studies that define the state of development– Person-years of primary interviews, secondary research, and analysis– The Nanotech Report 2004 is the third edition of Lux’s premier reference

study – a must-own volume for any participant in the field


Not “nano by accident”:•Ancient Egyptian pottery•Stained glass•Cat litter

Not MEMS; novelproperties emerge from the nanoscale

What’s nanotechnology again?

“The purposeful engineering of matter at scales of less than 100 nanometers (nm) to

achieve size-dependent properties and functions.”


What’s special about “less than 100 nanometers?”Quantum properties of matter overtake bulk properties

Carbon nanotube crossbar memory(LSI Logic, BAE Systems licensing from Nantero)Van der Waals forces hold nanotube crossbars together

Semiconductor nanocrystal biolabels(Ventana licensing from Quantum Dot Corp)Diameter of particle determines color of light emitted

Gold nanoshell cancer treatment(Nanospectra Biosciences)Size and curvature of shell determines light absorption

Artificial setae(U.S. Army contracting with Nanosys to develop)Weak atomic interactions allow soldiers to climb walls


Hybrid Molecular Transistor

Face Averaging of Epithelial

Thermally Grown Yittrium Oxide

Nanoclusters of Gold on BaTiO3

Nanolithographic PoetryHesse’s Glass Bead Game

Sectors: Tools and instrumentation


Source: Quantum Dot Corp.Source: www.phys.ncl.ac.uk Source: Accelrys; Piezoelectric crystal

Sectors: Materials


Nanomaterials enable premium prices and high marginsTraditional

productNano-enabled

productNanoscaleinnovation

Pricepremium

Wilson U.S. Open tennis balls, can of 3

$2.59*

Wilson Double Core tennis balls, can of 3

$3.49*

Clay nanocompositebarrier coating (InMat)

35%

Dockers Individual Fit Waistband Khaki

$48.00**

Dockers Go Khaki with Stain Defender

$55.00**

Superhydro-phobic nanoscalecoating applied to fabric(Nano-Tex)

15%

Coloplast/SweenContreet foam antimicrobial garrier dressing with silver, 5x5”, 5 count

$48.00***

Smith & Nephew Acticoat 7 antimicrobial dressing, 4x5”, 5 count

$55.00***

Silver nanoparticlesinstead of micron-scale silver film (NuCryst)

32%

Prices drawn from: * Exsell Sports; ** Amazon.com; *** Allegro Medical; all as of January 8, 2005


• Millipede: Shift from GMR to thermomechanical

• Technology works; commercialization not yet determined

• 32x32 array with data density increase without compromise in data transfer rate

Source: IBM Source: HP; S.Williams; P.Keukes

Source: IBM

Sectors: Devices – storage and computing examples


• Biomimicry for tissue engineering(NanoMateria, AngstroMedica, Inframat)

• ADME/tox- SKYE nanoparticle surface area enhancement- FLML polymer encapuslation

• Diagnostics-Tremendous activity!(Barcoding, qdots, gold nanoparticles, flourescence)

Sectors: Life sciences


Media coverage of nanotechnology – both positive and negative – is increasingly exponentially

1,8172,608

5,039

7,316

12,000

232 352 3620

2,000

4,000

6,000

8,000

10,000

12,000

14,000

1996 1997 1998 1999 2000 2001 2002 2003 2004(est.)

Mentions of “nanotechnology” in the popular press

Source: 2004 Lux Research Reference Study “The Nanotech Report 2004;”Factiva search on “nanotechnology” and derivative terms for all publications in database


Scientific articles and patents on the rise


Governments, corporations and venture capitalists will spent more than $8.6 billion worldwide on nanotechnology research and development in 2004

CorporationsGovernments

U.S.EUJapanIsraelSouth KoreaGermanyUK

Venture capital

New YorkCaliforniaTexasMassachusetts


Established corporations will spend more than $3.8 billion globally on nanotechnology R&D in 2004

Corporate nanotechnology spending, 2004 ($ billions)

$0.04$0.65

$1.4

$1.7

North America Asia Europe Rest of world

Source: Lux Research reference study “The

Nanotech Report 2004;” basd on

published spending figures, national

statistics, Lux Research analysis


109 nanotech start-ups have secured venture capital funding since 1998, representing 119 deals and $1.1 billion in financing

Distribution of venture capital investment in nanotechnology,1998 to 2004 (cumulative)

5%14%

40%

41%

Electronics & semiconductors NanobiotechnologySpecialty chemicals and nanomaterials Capital equipment and instrumentation


Nanotech Report 2004;” includes

publicly announced funding transactions and Lux Research

knowledge of confidential

transactions


Nanotechnology across the world


National and local governments across the world invested more than $4.6 billion in nanotechnology R&D in 2004

Government nanotechnology spending, 2004 ($ billions)

$0.13

$1.3

$1.6

$1.6

North America Asia Europe Rest of world


Nanotech Report 2004;” based on

published spending allocations, Lux

Research analysis


Technology development strength• R&D inputs• Technology and science

workforce• Technology concentration• Human capital investment• Risk capital and infrastructure• Fast 50 companies• Economic freedom ranking

Nanotechnology activity• State nanotech spending• State nanotech initiatives• Public companies active• Private companies active• Start-up investment rounds• Federal/university nanotech

centers• Nanotech patents• Nanotech patent applications• Nanotech SBIRs

Framework for ranking states for economic development competitiveness in nanotechnology


Framework for ranking states for economic development competitiveness in nanotechnology

Technology development strength HighLow

Nanotechactivity

High

Low

Massachusetts

California

Colorado

Virginia

New Mexico

New JerseyConnecticut

Maryland

Illinois

New York

WashingtonNew Hampshire

PennsylvaniaTexas

Minnesota

Arizona

Oregon

Vermont

Georgia

Michigan

Delaware

Rhode Island

Utah

IndianaOklahoma

North CarolinaIdaho

Nevada

Ohio

Kansas

Montana

Wisconsin

IowaTennessee

Florida

Nebraska

Maine

Kentucky,WyomingLouisiana

MissouriAlabama

South Carolina

North DakotaWest

VirginiaSouth Dakota

Alaska, Hawaii

Arkansas

Mississippi

Nano-Leaders

No-Shows Nano-Laggards

Nano-Aspirants


Leading states span the U.S.

Nano-Leader

Nano-Aspirant

Nano-Laggard No-Show

Linear rank#

37

12

18

10 1

227

613

421

7

45

29

38

24

19

9

32

15

33

41

47

34

47 42 19

42

26

35

3814

25

46

36

4430

38

2

516

22

27

28

11

17

3

47

47

30


Householdappliances

Manufacturingand materials

Catalysts

Coatings

Compositematerials

Fabrics

Fuelcells

Lubricants

Metal

AircraftAutomobiles

ClothingFood

Lumber

PaperSportinggoods

Electronicsand IT

Embeddeddisplays

Logic chipsMemory chips

Opticalcomponents

Sensors

Solarcells

Storagemedia

Computers

Consumerelectronics

Harddrives

Healthcare andlife sciences

Biologicallabels

Contrastmedia

Orthopedicmaterials Dental

equipment

Medicalinstruments

Pharmaceuticals

Lux Research expectations on nanotechnology deployment by sector

> 1% of products in segment incorporate emerging nanotechnology

> 10% of products in segment incorporate emerging nanotechnology

Intermediate products

Final goods

>10 years

2004

2009

2014

Source: October 2004 Lux Research Report “Sizing Nanotechnology’s Value Chain”


Global forecast, products sold incorporating emerging nanotechnology, 2004 to 2014, by value chain stage

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

$ m

illio

ns

Nanomaterials Nanointermediates Nano-enabled products

2004:Selective

deploymentsproliferate

2005 to 2009:Commercial breakthroughs

open markets

2010 to 2014:Nanotechnology becomes

commonplace

Source: October 2004 Lux Research Report “Sizing Nanotechnology’s Value Chain”


Global forecast, products sold incorporating emerging nanotechnology, 2004 to 2014, by sector*

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

$ m

illio

ns

Manufacturing and materials Electronics and IT Healthcare and life sciences

Source: October 2004 Lux Research Report “Sizing Nanotechnology’s Value Chain”* Nanointermediates and nano-enabled products only; nanomaterials cannot be meaningfully broken down by sector.

16%

50%

4%

2014 value as % of gross manufacturing output in sector


Questions?


Thank you

F. Mark Modzelewski, Managing [email protected]

+1 (646) 723-0705

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