Today, China lags behind Western nations
in nanotechnology -- the purposeful engineering of matter at scale of less
than 100 nanometers to achieve size-dependent properties and functions. But
trends in Chinese nanotech research have set the world's largest nation on a
course to challenge dominant nanotech players like the U.S., Japan, and
Germany. China's nanotech efforts will have broad-reaching implications for
issues ranging including energy independence, military capabilities, and
development of the domestic high-tech sector.
Consider these examples of China's nanotech growth:
- China's share of academic publications on nanoscale science and
engineering topics rose from 7.5% in 1995 to 18.3% in 2004, taking the
country from fifth to second in the world. Its share of these
publications has consistently risen during the past five years while the
shares of Germany and Japan have consistently declined.
- On an absolute basis, China's estimated government nanotechnology
spending of $250 million in 2005 lags countries like Germany and Japan.
But when adjusted for purchasing-power parity -- which takes account of
China's far lower infrastructure and labor costs -- its spending is
second only to the U.S.
- China's nanotech commercialization efforts to date have been sharply
bounded, confined to basic applications of nanomaterials; electronics
and life sciences applications are virtually nonexistent. But within its
circumscribed field, China is a world leader. Nanoparticle-enabled
coatings and composite materials are being incorporated into commercial
products much more rapidly in China than in Western countries or Japan.
The Lux Research team recently conducted a research trip in China,
conducting on-site interviews and facilities tours at 15 nanotech start-up
companies, government labs, and academic centers in Shenzhen, Shanghai, and
Beijing. On Friday November 11, the team will host a conference call to share
their findings with Lux Research clients and advise them on what partnership
targets, investment opportunities, and competitive threats are emerging from
the nation.
"China's nanotech efforts matter to our clients in multinational
corporations and investment management firms," said Lux Research Vice
President of Research Matthew M. Nordan. "On one hand, China presents
opportunities -- companies like Shanghai Kangyu Industry and Commerce have
been much more successful than Western peers at getting their nanoparticles
into commercial products, and fascinating academic research like the
'molecular surgery' approach by Dr. Min-qian Li is ripe for commercial
licensing. On the other hand, China also presents competition. Many
nanoparticle producers we spoke with have their eyes on global markets and
undercut Western rivals by up to 50%."
The conference call is open to clients of Lux Research's Nanotechnology
Strategies advisory service. For more information on how to become a client,
contact Nick Katsoulis at +1 (212) 644-9563.
