The United States is not alone in recognizing nanotechnology's importance. Instead of a substantial U.S. lead similar to those we enjoyed in many fields of research as a result of the transfer of industrial power and technology after World War II, nanotechnology research starts from roughly the same baseline in all countries. Experts estimate that Europe, Asia Pacific and the United States may be spending approximately equal amounts on nanotechnology research in future years.




Most industrialized countries are funding technology research. Japan has stated that they will spend over $700 million in their nanotechnology research program this year, up from a planned $650 million. An NNI Update meeting in April revealed that Japan might spend up to $1 billion next year where both the government and commercial sectors are making major investments in research. There are over 10 companies in Japan with nanotechnology research centers. China has publicly stated, "We can beat Japan." Korea plans to invest $1.1 billion by 2007 in nanoscience research and recently announced that they will spend about $160 million this year to accelerate nanotechnology projects. Not to be out done, Taiwan announced plans to spend $666 million over the next six years, an increase of almost 21% over their prior plans. The table below summarizes worldwide spending from 1997 - 2002.


Worldwide Nanotechnology Spending (Millions of US Dollars)
*Source: National Science Foundation

“Progress in nanotechnology will heavily depend on R&D investments; countries that continue to invest in nanotechnology today may lead the field in 2015.”

- "The Global Technology Revolution" RAND National Defense Research Institute

Other regions of the United States have recognized the opportunity that nanotechnology provides. UCLA and UC Santa Barbara are building a $350 million research institute. This will be funded by grants of $110 million from the federal government, $100 million from the state, $90 million from private foundations, and $50 million from industry. New York is spending $50 million for use in nanotechnology research in conjunction with IBM and the State University of New York in Albany. Other states, particularly in the Midwest have strong programs, too.

Texas is a world leader in the field of nanotechnology research today. Rice University took an early national lead when it established the 70,000 square foot Center for Nanoscale Science and Technology in 1997. Texas' lead was increased in the spring of 2001 by a $2.5 million gift from James Von Ehr -- with $500,000 in matching funds from the state -- to establish the nanotechnology Institute at the University of Texas at Dallas (UTD). In August, UTD recruited Alan MacDiarmid, a Nobel Laureate and expert in nanoelectronics, to lead their nanoscience efforts. With Richard Smalley at Rice, Texas now has two nanoscience centers led by three Nobel Laureates in chemistry.

Four regions of the United States, California, the Midwest, the Boston/New York corridor, and Texas, have reached a level of activity that might be called "critical mass," establishing them as leading regions for nanotechnology research and, consequently, future commercialization. Additionally, other countries may be at critical mass. However, to remain at critical mass, these regions must continue to invest in nanotechnology or risk losing their early lead.

On a absolute or per capita basis, Texas is being outspent. In the last three years Texas committed $500,000 or two cents per person to nanotechnology. California committed $2.90 per person, and Japan committed over $5.50 per person.