Dr Izaro Lopez Garcia

BES La SalleManaging in technology intensive organizations

Table of Contents

What is Nanotechnology Current and Future Applications

The Business Environment Nanotechnology Value Chain Where is nano in the tech curve? “Valley of Death” between “proof of concept” and “reduction

to practice” Volumes and Markets

Research & Development Open Innovation vs Closed Innovation

The Stakeholders Environment Health, Environment and Safety Risks Regulatory Environment

Future of Technology Business Leadership

and why we need it.

What is NanotechnologyAn industry definition

The purposeful engineering of matter and structures at scales of less than 100 nanometres to achieve size-dependent properties and functions.

Not “nano” by accidentReally small

Not just “small” but “small” and “different”

In Technology, Size Matters

One of the most difficult things to understand about nanotechnology is to get a solid grip of exactly how small nanoparticles are. This image seeks to better illustrate this by comparing nanosized objects with the size of an ant, mite, hair, red blood cell and DNA strand.

Play videos...

Technology in its early, imperfect form, has been a mostly negative force on the environment.

Nanotechnology will produce effectively no waste and not involve any cutting, grinding, sanding, melting, forging, or herding of large numbers of unruly atoms.

Nanocomputers will ultimately control the direct "printing" of any item via an assembler straight from data using pure feedstock atoms or molecules.

Nanotechnology will make exactly what it is expected to make - no more, no less - and therefore no pollution. Matter will be used more efficiently by this technology and put to much better use; rather than just taking up mass and space, objects will become multi-functional, intelligent and atomically precice.

Nanotech’s impact gets broader & deeper, eclipsing established techs

Nanotechnology Value Chain

Nanoscale structures in unprocessed form

• Nanoparticles• Nanotubes• Quantum Dots• Fullerenes• Dendrimers• Nanoporous

Materials...

Intermediate Products with

nanoscale features

• Coatings• Fabrics• Memory & Logic Chips• Contrast Media• Optical Components• Orthopedic Materials• Superconductive Wire...

Finished Goods Incorporating

Nanotechnologies

• Cars• Clothing• Airplanes• Computers• Consumer Electronics

Devices• Processed Food• Plastic Containers• Appliances...

Nanomaterials NanointermediatesNano-enabled

products

Global Growth & Medium Term Forecasts

The 2004 to 2007 time period marked the first phase of emerging nanotechnology development, as key innovations made their first big commercial splashes. We see this time as the first of three phases of emerging nanotech adoption, each with unique characteristics.

2004 to 2007: Incorporation into initial products driven by manufacturing and materials

2008 to 2011: Broadening into more new product categories across all sectors

2012 to 2015: Deepening impact from new innovations in existing applications

Commercialisation Process: nanoS-curve

Commercialisation Process: Challenges

Crossing the Valley of Death: between Proof of Concept and Reduction to Practice

Nanomaterials: Ceramic Nanoparticles

Market in 2005: $179 million Market in 2010: $1.5 billion Material costs: Dollars to thousands

of dollars per kilogram Primary applications: Nanoclays for

structural composites; UV absorbers in cosmetics, plastics, and coatings; CMP slurries; fuel catalysts; photocatalytic coatings, glasses, and filters; batteries; Grätzel solar cells

Nanomaterials: Metal Nanoparticles

Market in 2005: $89 million Market in 2010: $770 million Material costs: Tens to many

thousands of dollars per kilogram Primary applications: Vast majority

either in antimicrobial nanosilver or in catalysis using particles of Pt, Pd, Ni, Co, Rh, etc.; also conductive layers in displays; printed electronics, esp. with Cu, Ag; sensors (SERS or plasmonics based); Al nanoparticlesfor “energetics”

Nanomaterials: Nanoporous Materials

Market in 2005: $54 million Market in 2010: $690 million Material costs: Tens to many

thousands of dollars per kilogram Primary applications: Vast majority in

aerogel materials (primarily silica) for insulation, as well as in optics, electronics, catalysis; polymers for separation media; polymers, silicon, or carbon for drug delivery systems; carbon, polymer, hydroxyapatite, etc. medical device coatings

Nanomaterials: Carbon nanotubes

Market in 2005: $43 million Market in 2010: $260 million Material costs: Tens to many

thousands of dollars per kilogram Primary applications: Substantial

majority by volume today and for foreseeable future in MWNTs for conductive and structural composites; emerging uses of SWNT composites and in memory, sensors, thermal management, conductive display layers, EMI/ESD coatings

Nanomaterials: Nanostructured Metals

Market in 2005: $28 million Market in 2010: $198 million Material costs: Hundreds to many

thousands of dollars per kilogram Primary applications: Hard coatings

or structural components in aerospace, automotive, pipelines, sporting goods; chromium-free anti-corrosive coatings

Nanomaterials: Dendrimers

Market in 2005: $12 million Market in 2010: $42 million Material costs: Hundreds to many

thousands of dollars per kilogram Primary applications: Drug delivery,

therapeutics, and diagnostics; applications mooted in personal care, coatings, composites, inks, and adhesives

Note: Dendritic NanoTechnologies expects orders of magnitude cost decreases with new synthesis techniques

Nanomaterials: Quantum dots

Market in 2005: $4.3 million Market in 2010: $38 million Material costs: Thousands of dollars

per kilogram Primary applications: Biolabels and in

vitro diagnostics; optoelectronic applications like LEDs, displays, solar cells; inks and paints for identification or brand protection

Nanomaterials: Fullerenes

Market in 2005: $2.5 million Market in 2010: $60 million Material costs: Thousands of dollars

per kilogram Primary applications: Composites,

mainly for sporting goods; antioxidant additives for cosmetics; organic solar cell components; fuel cells; uses as lubricants and as novel therapeutics are mooted as well

Nanomaterials: Nanowires

Market in 2005: <$1 million Market in 2010: $16 million Material costs: Thousands of dollars

per kilogram Primary applications: Conductive

layers for displays; sensors; solar cells; logic devices

Nanomaterials: Other important categories

Polymer nanoparticles: Engineered nanoscale particles of latexes, urethanes, acrylics, etc. used or studied for coating and composite formulations by BASF, Arkema, DuPont, Rohm & Haas, et al.

Drug nanoparticles and nanoscale reformulations: Coated nanoparticles of actives or encapsulation in liposomes, micelles, emulsion, etc., used in over $1 billion worth of drugs currently, and similar technologies are also widely applied to food and personal care

Nanoscale films: Sub 100-nm layers of polymers, metals, ceramics which are self-assembled or deposited on surfaces from Si-C wafers to glass to fabrics

Open InnovationNew technology strategies and their application to nanotechnology

“Open innovation is a paradigm that assumes that firms can and should use external ideas as well as internal ideas, and internal and external paths to market, as the firms look to advance their technology”. Henry Chesbrough.

The boundaries between a firm and its environment become more permeable; innovations can easily transfer inward and outward. The central idea behind open innovation is that in a world of widely distributed knowledge, companies cannot afford to rely entirely on their own research, and should instead buy or license processes or inventions from other companies. In addition, internal inventions not being used in a firm's business should be taken outside the company.

Open Business Models: How to Thrive in the New Innovation Landscape (2006)

Closed Innovation Principles:

• The smart people in the field work for us.

• To profit from R&D, we must discover it, develop it, and ship it ourselves.

• If we discover it ourselves, we will get it to the market first.

• The company that gets an innovation to the market first will win.

• If we create the most and the best ideas in the industry, we will win.

• We should control our IP, so that our competitors don't profit from our ideas.

Open Innovation Principles:• Not all the smart people in the

field work for us. We need to work with smart people inside and outside the company.

• External R&D can create significant value: internal R&D is needed to claim some portion of that value.

• We don't have to originate the research to profit from it.

• Building a better business model is better than getting to the market first.

• If we make the best use of internal and external ideas, we will win.

• We should profit from others' use of our IP, and we should buy others' IP whenever it advances our business model.

Risks and Legal Framework

Health, Environment and Safety RisksLack of regulation can damage technology reputation

The catch-all term ”nanotechnology” is so broad as to be ineffective as a guide to tackling issues of risk management, risk governance and insurance.

Health, environment and safety risks concerns are related to free nanoparticles.

relevant only for a certain portion of the widespread applications of nanotechnologies.

The implications of the special properties of nanoparticles with respect to health and safety have not yet been taken into account by regulators.

Size effects are not addressed by EU’s REACH policy. Governments starting to tackle these.

Over the next few years, more and more consumers will be exposed to manufactured nanoparticles.

Labelling requirements for nanoparticles do not exist. Studies on biopersistence, bioaccumulation and ecotoxicity have only just started.

Promise of business opportunities Energy, health, water, climate, resources

Governments investing heavily Key enabling inventions in the 1980s Current forecasts are uncertain

Defining value added worth, role in new product development, 2008 crisis factoring

R&D activities geographically concentrated US, Japan, Germany, France, United Kingdom Newcomer: Korea, India, China

Patenting distributed across broad range of sub-areas and application fields

Multiplicity of applications of technology & its general purpose nature.

Commercialisation remains challenging High processing costs, scalability, concerns about environment, health &

safety

Future of Technology Business LeadershipStealth Success, Broad Impact

Nanotechnology – and the nanomaterials that are the root of the value chain – has taken hold in many industries, as corporate, government, and venture capital funding have driven spending on nanotech R&D to $13.5 billion. Despite some applications that failed to live up to the hype, emerging nanotechnology was used in $147 billion worth of products in 2007, and will impact $3.1 trillion in manufactured goods in 2015. Large companies are taking a more selective approach to nanotech, while concerns that have hampered the field – like potential environmental, health, and safety risks, and misbegotten specialist strategies – are moving towards resolution.

Dr. ÍzaroLópezGarcíais a consultant and partner at Organisol, which he cofounded in 2008. He provides specialised consulting services to companies and institutions focused in nanotechnology applications and open innovation strategies.

For more information read: Opportunities and risks of Nanotechnologies (OECD - 2006) Nanotechnology, an overview based on indicators and statistics (OECD - 2009) Nanotech Report 5th Edition (Lux Research - 2007) Open Business Models: How to Thrive in the New Innovation Landscape (Henry

Chesbrough, 2006)

Ízaro can be reached at: email: izaro@organisol.euWeb: www.organisol.euFax: +34 917615112Mob: +34 677567771