Emerging technologies - nanotechnology

 

Emerging technologies can present investors with exciting but difficult investment choices. While the potential opportunities associated with new technologies can be substantial (both for the investors and broader society), some of these technologies may pose significant risks. Nanotechnology is a case in point.

 

Nanotechnology involves the development of new materials and processes through the creation and/or manipulation of particles at the ‘nanoscale’ (a nanometre is one billionth of a metre). Nanoscale particles exhibit characteristics that are radically different from their ‘normal’ sized forms – making them stronger, more efficient, faster, lighter, etc. However, it is precisely because of these novel characteristics that some question the safety of certain nanotechnology applications.

 

Proponents of nanotechnology believe that it promises to revolutionize our lives and provide solutions to some of the world’s most pressing problems (e.g. the need for new energy sources and clean water). Although the technology is still considered to be in its infancy, nanoscale materials are already being used in a wide variety of electronic, information technology, pharmaceutical, cosmetic, plastics, energy, fabric and clothing, and environmental applications. The global market for nano-applications is expected to be between $1 trillion and $3 trillion by 2015. In 2004 alone, $8.6 billion was invested by governments and the private sector in research and development. Hundreds of companies around the world, from relatively unknown and unlisted start-up companies to larger, well-known corporations are involved.

 

 

We kicked off our work in this area in November 2006 by co-hosting a seminar with the Royal Society and the Nanotechnology Industries Association to discuss the genesis and potential significance of a range of social, ethical and environmental risks and to stimulate debate about how companies might address those risks. Together, we published a joint paper in December 2006 entitled "An Uncertain Business: The Technical, Social and Commercial Challenges Presented by Nanotechnology" as well as a summary of the event. In 2007, we plan to take other initiatives forwards.