Canadian Experience in Development of

Nanotechnology Statistics:

Pilot Survey On Nanotechnology

Chuck McNiven

Statistics CanadaNovember 2007

Context

The issueDevelopment of systematic and consistent processes for measuring activity and investments to help inform strategy and policy decision making on the scientific, economic, health, environmental and social impacts of nanotechnology

The challengesMeasurement of evolving emerging technologies

Definitions, nomenclature, fragmented data sources, policy framework not fully developed

Great interest, limited resources

The intended outcomeA reliable set of validated and comparable statistics that can evolve with, and inform policy and strategy development

Core Questions

What is nanotechnology?

Who are the actors in nanotechnology?

Where is nanotechnology?

Why use nanotechnology?

What are the results of using nanotechnology?

How many resources have been committed to

nanotechnology?

How are the actors connected?

Definitional Challenges

No single definition of nanotechnology – an umbrella term for a suite of technologies that includes the characteristics of size, control, function and performance:

The study and manipulation of matter on a nanometer length scale (1 nm = 10-9 m = 1 billionth of a metre)

The ability to control matter on a nanometre length scale for the construction of new materials with novel properties (physical, chemical, biological) and/or functions (e.g. quantum effects)

The distinction between naturally occurring nanoparticles (ionic sprays); by-products (diesel emissions); and purposely engineered materials (carbon nanotubes, quantum dots)

Definitional Challenges

A challenge facing the survey, and indeed all research into the nature of an emerging technology, is the fact that nanotechnology is not a single product or process nor a single group of products or processes.

It is a broad spectrum of products and processes spanning Human Health, Agriculture, the Environment and other industries and classifications.

The sampling techniques are consistent with this situation, and the sample reflects not a single well-defined industry but a developing sector with a variety of characteristics, some known and some unknown

Data are collected directly from survey respondents questionnaires in paper format or in some cases phone interviews. Survey is mandatory.

Survey Process

The cross-economy survey conducted in two stages.

First, the Survey 0n Emerging Technology (SET) a simple questionnaire with five Yes/No questions was mailed to 11,800 firms.

Topics were biotechnology, bioproducts, functional foods & nutracuetical, nanotechnologies

ETS is a census of industries were these technologies have been observed or are thought to occur

Second, a section on nanotechnologies was inserted on the Biotechnology Survey questionnaire as a pilot survey.

Firms thought to be engaged only in nanotechnology received specialized instructions for completion

Stratification was made using these 3 variables: NAICS, province and size.

The Results: A profile of the nanotechnology

sector in Canada

In 2005 88 firms reported involvement in nanotechnology

91% of firms were active in research and development (R&D)

27% reported that they were in the production or on-market stage

Firms reported the greatest involvement in nanomaterials-43%, nanobiotechnology 42%, followed by nanomedicine, nanophotonics and nanoelectronics

Small firms accounted for 81% of firms, large and medium-sized firms accounting for 10% and 8% of firms.

Provincial distribution of the firms revealed 30 firms in Ontario (34%), followed by Quebec with 25 (28%), British Columbia with 19 (21%) and Alberta with 12 (14%) firms. The remaining firms were spread across Canada.

Provincial profiles followed patterns similar to those observed for Canada as a whole.

Financial details

Firms reported $28 million in nanotechnology revenues

in 2005, an increase of 19% from 2004

A near-doubling of revenues ($55.8 million) is forecast

by respondents for the year 2007

Quebec accounted for the majority of revenues (52%),

with Ontario following at 22%, British Columbia at just

under 14% and Alberta at 12%

Financial data for the rest of the provinces are not

available due to the small number of respondents in

those provinces

72 small firms earned 88% of all nanotechnology

revenues in 2005

Financial details

Nanotechnology R&D expenditures totaled just over $40 million a 12% increase between 2004 and 2005

Forecast of increase of $18 million a year by 2007

Contracted out R&D made up about 6% of total nanotechnology R&D expenditure.

93% of nanotechnology R&D is performed in small firms, they account for 82% of all firms and 88% of all nanotechnology revenues.

22 firms attempted to raise capital for nanotechnology-related activities. Of these, only eight small firms were successful in raising just over $16.5 million.

This demonstrates a fairly significant failure rate and could be significant in the future growth of the nanotechnology sector and a concern to stakeholders.

Intellectual Property

Surprisingly, given the early stage of development of the nanotechnology sector, 34 firms reported a total of 559 intellectual property (IP) instruments in 2005

Patents 60%

Pending patents 28%

Technology transfer agreements 7%

Licensing agreements 3%

The unexpectedly high number of patents has been investigated and verified

The survey asked about the number of patents and other IP instruments without geographic parameters, therefore, it is possible that some double counting may have occurred raising the total number reported

55 firms had collaborative arrangements, 80% were small firms

Human Resources

In 2005, 88% of the 380 nanotechnology employees worked in small nanotechnology firms

The majority (76%) have full-time duties as nanotechnology employees, 24% with part-time nanotechnology duties

15% of firms, virtually all small firms, reported having difficulty attracting nanotechnology employees, with scientists and technical staff shortage the most commonly cited

There is a regional component - 40% of firms in British Columbia reported difficulty finding nanotechnology staff, more than double the percentage of the next highest province (Quebec at 19%) and Canada as a whole. In British Columbia, scientist and technical shortages the most common difficulty reported

What we discovered

These results are just one set of possible indicators of

nanotechnology activity in Canada

A single pilot survey is not robust enough to definitively

address all the issues surrounding nanotechnologies

Gaps include coverage and public nanotech activity

such as funding and performers

By placing the results of the survey in the context of a

framework for the development of indicators, the results

begin to shed light on some key questions

Who, what, where, why, how many, how connected?

What we discovered

What is nanotechnology?

For statistical purposes further discussion of definitions is

required, but this survey provided an empirical test of one

definition, understood by respondents

Where is nanotechnology?

Nanotechnology is concentrated in nanomaterials and

nanobiotechnology

However, much work remains to further refine where in

the economy nanotechnology will be found

This is a primary challenge facing all emerging

technologies

Nanotech is found in small firms

What we discovered

Why use nanotechnology? What are the outcomes?

Firms reported $28 million in nanotechnology revenues. However, the more than $40 million in nanotechnology R&D could be viewed as an investment in the firm and the future. The longer-term impacts are areas for future consideration.

How many resources are committed to nanotechnology?

With 380 employees and over $40 million in R&D (46% increase forecasted for 2007), there is a small but growing commitment of resources to nanotechnology. Of significance is that only 8 of 22 small firms that attempted to raise capital were successful.

How connected?

Over 70% of nanotechnology firms reported collaborative arrangements with universities, other firms and government. As the needs of the firms change so too will these connections.

What we discovered

Despite the challenges facing systematic measurement of nanotechnology, precedent can be found in the approaches undertaken and results seen

The measurement of nanotechnology is in its infancy and much work and many challenges remain with respect to monitoring, measuring and analyzing this emerging technology

This pilot survey on nanotechnology has successfully begun to address some of the critical questions:

Respondents were able to understand and respond to questions on the concepts

It demonstrates that nanotechnology at the firm level can be measured on a national and sub-national level

It provides useable data on variety of subjects

Related Work

Questions are included on:

Survey of Innovation in Services

Research & Development in Canadian Industry survey. Uses tax and survey data of larger R&D performers

Survey of Advanced Technologies-2007, currently in collection

Emerging Technology Survey – 2003, 2005, 2007

Definitions & concepts were tested with respondents and accepted

Aids in locating sectors where nanotech is happening

Negotiations under way to include on Federal S&T survey – funders and performers

Next steps

Included in 2007 Emerging Technology Survey

Larger frame, better coverage

More detail on involvement

Research & Development in Canadian Industry (large R&D performers) results expected November 2007

Inclusion on Federal S&T survey potential

Continuing work with international community

Your questions and comments are invited