Small Science Has Big Opportunities
October 27, 2003

By James Klein, Larta VOX Editor

Business and research leaders from Japan and the United States came together in Torrance, California on October 16th to share nanotechnology research developments and business opportunities at Larta's Japan Meets the Nano Republic III conference.

A diverse audience of investors, analysts, scientists, entrepreneurs, corporate executives, government leaders and others interested in nanotechnology were captivated and inspired by a myriad of promising technologies, companies, and products. Speakers included corporate, government and academic representatives from Japan and the United States, who detailed an array of research and business opportunities available today and in the near future.

The program had plenty of high-level science to keep the technologists happy, and lots of exciting commercial opportunities that kept the investors glued to their seats.

The event highlighted successful nanotechnologies and related commercialization efforts by leading laboratories and corporations, and also featured pitches by smaller Japanese companies, and private business meetings with potential U.S. partners and investors during and after the conference.

"Japan is a world leader in nanotechnology, and California has an incredible richness of scientific and business leaders in the field," said Rohit Shukla, Larta's President and CEO, who served as the Master of Ceremonies for the event. "The value of this conference is that it is not just presentations of scientific developments and products, but provides specific opportunities in business meetings for researchers, companies, and investors to meet and interact with each other."

The event was organized by Larta and the Los Angeles office of JETRO, The Japan External Trade Organization (JETRO), a non-profit group established by the Japanese government as a comprehensive trade information service to help facilitate trade and cooperation among Japanese and international companies.

Imagine two potential entrepreneurs standing on a hill in Kitty Hawk, North Carolina in 1903, watching Wilbur Wright soaring across the landscape. One turns to the other and says, "It seems like a promising technology, but I'm not investing until they figure out how to commercialize it." That's where nanotechnology is today. Everyone seems to agree it's a promising technology, but private investors are largely watching from the sidelines, waiting for nanotechnology products to prove themselves in the marketplace. Which is when, of course, the opportunity to fully capitalize on an investment will be gone.

This is where the US and Japanese governments have proven to be indispensable, working in partnership with industry and academia to advance the science of nanotechnology, which will lead to eventual commercialization.

Rohit Shukla opened the event with a discussion of the promise of nanotechnology, and the ongoing efforts of the Japanese and US governments to help develop the industry. "The US government has become a major investor in nanotechnology," said Mr. Shukla. "Public investment has facilitated a great deal of private technological innovation, through government research contracts, university support, small business loans, and other means. The US government's 2003 budget request of about $710 million represents a 17% increase over 2002," explained Mr. Shukla. "And the 2004 budget has about $849 million for nanoscale science, engineering and technology."

Mr. Shukla also emphasized the enormous commercial opportunities in nanotechnology, citing an NSF report that projected nanotechnology would become a $1 trillion per year industry. He also acknowledged JETRO's role in helping to organize the event and credited the efforts of Michael Gamble, Director of Scientific Programs at Fidelys, who helped drive Larta's nanotechnology efforts through his work with Fidelys, the investment bank established by Larta with a group of outside investors.

The Japanese government announced, only the day before the event, a new nanotechnology effort, the Nanotechnology Business Creation Initiative involving 243 companies, universities and governmental organizations working together to advance nanotechnology development in Japan.

Opening remarks for Japan Meets the Nano Republic III were provided by Tosaku Kobayashi, Chief Executive Director of JETRO Los Angeles, who also emphasized the promising commercial opportunities in nanotechnology, and discussed some of JETRO's numerous and successful efforts to help promote nanotechnology industries in Japan, to help Japanese companies partner with other investors, scientists and corporations, and to work with other organizations like Larta to help bring together key industry players and experts from around the world. Makoto Yokota, Executive Director of Research & Technology of JETRO delivered closing remarks.

Keynote Speakers included Dr. Naoki Yokoyama, General Manager of Nanotechnology Research Center at Fujitsu Laboratories, Mr. Kiyoshi Shishido, Senior Manager at Mitsubishi Corporation, and Dr. Anthony F. Laviano, Managing Director of NANOWorld.

While each speaker discussed his organization's research efforts, a common theme in their presentations was the international cooperation and nature of the research and business developments, as laboratories, universities, government organizations and business components come together to advance the science and its commercialization.

Speakers also emphasized the increasing number of commercial applications for nanotechnology in DNA chips, MEMS (micro electro mechanical systems), carbon nanotubes, photonics, thin films, surface processing, composite materials, fullerenes (large carbon-cage molecules), nano coatings, next generation LSI (large scale integration) circuits, laser ion beams, bio reactors, data storage, drug delivery systems, magnetics, micro TAS (total analysis systems), and atomic test microscopes.

Dr. Yokoyama's address, "Future Prospects of Bio-Nanotechnology," discussed some the nanotechnology R&D taking place at Fujitsu's Nanotechnology Research Center, and expressed his expectation that nanotechnology will revolutionize materials, biomedical treatments, electronics, environmental technologies, energy systems, and other industries.

Three exciting areas of research at Fujitsu are nanodevices and systems, including quantum bits for use in information technology; nanomaterials, such as single and double-walled carbon nanotubes; and nano-bio, which explores the fusion of nanotechnology and biotechnology, including the use of protein chips. Dr. Yokoyama also emphasized some of the most promising commercial applications for these technologies, including the use of carbon nanotubes for ULSI (ultra large scale integration, which refers to placing more than about one million circuit elements on a single chip), sensing applications for the healthcare industry, and protein detection for genetic drug development.

Dr. Yokoyama also highlighted the ongoing international collaboration that has made these advances possible, as Fujitsu Laboratories of Europe and Munich, Germany's Technology University have worked with Fujitsu's Nanotechnology Research Center in Japan and the Cambridge-MIT Institute to help develop these technologies.

Mr. Shishido discussed the Nanotechnology Business Development Project at Mitsubishi Corporation, which is focusing on IT, including image compression, mobile internet, optical switch and flexible polymer technology; nanomaterials, including fullerenes and nanotubes for use in lithium secondary batteries, super capacitors, cosmetics, fuel cells and nanocrystalline diamonds; energy and environment technologies for use in waste water treatment, fuel cells, and hydrogen production; and biomedical technologies and applications, including protein chips, retinal image diagnosis and photo dynamic therapy.

Mr. Shishido also explored the incubation model that Mitsubishi is following for commercializing its technologies as research leads to development, commercialization, and eventual monetary return. In addition, Mr. Shishido emphasized Mitsubishi Corporation's worldwide network, which has helped develop and commercialize its technologies, and includes Nanotech Partners Limited, Mitsubishi Chemical Corporation, Honjo Chemical, Fullerene International Corporation, Frontier Carbon Corporation, and UFJ Capital.

Dr. Laviano's talk, entitled "Growing Nano Engineers In the Aerospace Industry," emphasized the increasing importance of nanotechnology engineers in the aerospace industry, and the industry's role in commercializing nanotechnology products. "Some of the most exciting products and technologies are coming out of the aerospace industry," said Dr. Laviano. "R&D investments are really starting to pay off."

Dr. Laviano also explored trends in federal research funding and aerospace industry consolidation, and discussed areas of nanotechnology that are benefiting the aerospace industry, including Nano Electronics, Nano Optics, Carbon Nanotubes, Nano Materials, Nano Fabrication, Modeling and Simulation, Nano Crystals, Nano Sensors, Robotics, and Nano Devices. Dr. Laviano concluded his talk by inviting attendees to participate in NANOWorld September 21-23 in Anaheim, California.

Also featured was Dr. Ari Requicha, Director of Molecular Robotics Laboratory at the University of Southern California, who gave a presentation on "Nanorobotics and Sensor Networks" that highlighted intriguing applications for nanotechnology use in the field of robotics, particularly where applied to sensor networks necessary to relay information to a robot's data network.

A stimulating Panel Discussion on "Nanotech Commercialization in Japan & the US" featured Dr. Naoki Yokoyama, Fujitsu Laboratories, Ltd.; Mr. Kiyoshi Shishido, Mitsubishi Corporation; Mr. Takahiro Matsui, Director, Nano Tech 2004, ICS; Mr. Lynn Foster, Squire Sanders & Dempsey LLP; and Mr. Mitsuru Takeshita, Director, NEDO; and was moderated by Theodore J. Roper, Attorney, Hogan & Hartson L.L.P. Some interesting commercial applications were mentioned during the panel discussion, including resins, quantum polymers, fabrication techniques, cosmetics, the use of nano-composite materials in golf clubs and tennis rackets, nano-coatings on bowling balls, X-ray machines, 500 gigabyte hard drives, flat panel display monitors, computer batteries using nano carbon, eyeglass coatings, sunscreen, and air cleaners using nano-sized water molecules, as well as "nano pants," made of materials that could possibly change color or texture. Panel members also discussed the emerging cooperative environment between Japan and United States, and the increasing licensing and partnership opportunities.

Several representatives of promising companies employing nanotechnologies gave presentations at the event, including Dr. C.C. Huang of Hosokawa Micron Corporation; Kenji Tochigi of Tokyo Instruments, Inc., Brian Powel of Adept Japan Co., Ltd.; and Stephen Nett, CEO of Quantum Polymer.

Private meetings were arranged between Japanese companies and US corporate and university representatives to promote potential investment, research cooperation, and other partnerships. Companies and organizations available for meetings included Adept Japan Co., Fujitsu Laboratories, Hitachi Chemical, Hosokawa Micron Corporation, Mitsubishi Corporation / Nanotech Partners, NanoTech 2003, NEDO, Senju Comtek Corp., SMC Corporation, Sumitomo Corporation, Sumitomo Electric, and Tokyo Instruments. These companies met with representatives from Hybrid Plastics, HiEnergy Tech, Quantum Polymer, UC Irvine INRF, Nanosonic, Technanogy, Material Methods, Microwave Bonding Instruments, Chemat, and Discera.

Hear Rohit Shukla's Bio Tech Today Interview on Japan Meets the Nano Republic III.
Read Nanotechnology Flourishes in Japan from the October 6, 2003 issue of Larta VOX.
Read Nano Tech Talk with Dr. Michael T. Gamble from the August 11, 2003 issue of Larta VOX.
Order Larta's White Paper: Nanotechnology: What to Expect
Read about Larta's Nano Republic Conference 2003
Read about the Nano Republic Award Winners
Go to the Nanotechnology section of Larta's Research Archive

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