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Report says nanotechnology is overhyped and a long way from delivering on potential

Nanotechnology, the science of the truly tiny, has been overhyped and is still a long way from delivering on its potential, according to a new piece of research produced by venture firm 3i in conjunction with the Economist Intelligence Unit and the UK-based Institute of Nanotechnology.

The report, Size Matters - Building a Successful Nanotechnology Company, argues that the science needs ‘commercial applications, farsighted investors and collaborative research to create sustainable value'. The industry will need steady investment over a ten to 20 year period and the support of customers and governments to reach critical mass, it says.

In short, the report says that nanotechnology will be a hugely important area of science in the years ahead, impacting all areas of life, but is still in its commercial infancy.

The research also included a survey of almost 100 of the world's leading nanotech entrepreneurs, investors and researchers. Among the key findings, the report said 36 per cent of respondents thought the biggest roadblock to nanotechnology progress was the challenge of finding and recognising commercial applications of the science.

Experts said nanotech start-ups needed to be crystal clear about the commercial benefits they could offer to avoid unleashing a backlash against the fiction that it can fix everything.

A number of venture firms are already actively investing in nanotechnology but it has not yet achieved significant status as a niche sector. Most investors feel it is still a long way from delivering big returns, a view largely vindicated by this piece of research.

For the uninitiated, the report defined nanotechnology as ‘any application of science that deals with elements between 100 nanometres and a tenth of a nanometre in size, in which size is critical to the application's ultimate purpose. One nanometre is one billionth of a metre'.

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