Direct from DC

SPECIAL DELIVERY from WASHINGTON, DC: 
Nanotechnology Policy EDITION

Dear Nanotech Messenger Readers,

On my way back from nano-briefings with our sister facility, NASA Langley Research Center, I was able to attend this great conference. So I am writing to you (this is more a stream of consciousness, in a departure from my normal format) from Washington DC, direct from the National Nanotechnology Initiative (NNI) Conference appropriately dubbed “From Vision to Commercialization.” Your Nanotech Messenger is special this week because everything reported below is either from what I’ve learned in the past week of meetings or is otherwise related to policy, one of my favorite subjects. I remember the first NNI conferences just a few years ago were very speculative, with tentative forecasts about possible progress. This year, however, is all about nanotechnology applications writ large (no pun), with expectations reported factually as projections for the near future. Dr. Mike Roco, the forward looking thinker leading the NNI, stated that the one trillion dollar nano-economy will arrive before 2015. If we were to chart the acceleration of rising optimism from this knowledgeable group, I would say that next year, the nano-boom will be even closer than we imagined. The stellar list of speakers and participants agreed that we are indeed moving mightily toward government applications and industry commercialization. 

The NNI meeting gives me a chance to catch up with the NASA Headquarters folks and discuss how nanotechnology is going to enable our new exploration initiative. The newly formed Code T is responsible for harnessing NASA’s formidable resources to accomplish the President’s goal of sending robots followed by humans to the moon and Mars. On his way back to Headquarters from the NNI conference, Dr. Minoo Dastoor, one of the lucky few who get to think strategically about how to invest NASA’s nanotechnology dollars, chatted with me… More and more, we are becoming convinced that nanotechnology will play a key role in the grand adventure. In space, where materials, energy, processing power, bio support, and propulsion are all critically measured against mass, nanotechnology could be the solution to numerous technical obstacles. 

The kickoff event with Dr. John Marburger, head of OSTP, and senior science advisor to the President, stressed the commitment at the highest levels of government to the recently passed 21st Century Nanotechnology R&D Act. Marburger is an impressive guy and hard act to follow, but Mike Roco came up with an impressive summary of the accomplishments of the NNI thus far. I’ll be letting you know as I receive news about the September planning meeting called Research Directions II and the new report on nano commercialization coming out this month. 

ITEM: Josh Wolfe Presented Marburger with a Nano White House at PCAST
Cornell University professors have made a White House 1/100,000 the size of the original to honor President Bush's recent signing of the 21st Century Nanotechnology Research and Development Act. The lucite encased paperweight containing a chip with a lithograph of The White House will be presented to Dr. John H. Marburger, the Director of the Office of Science and Technology Policy (OSTP), at a meeting of the President's Committee of Advisors on Science and Technology (PCAST).
http://www.nba.org

ITEM: A few websites that were mentioned in the first presentations Definition of nano according to the government
http://www.nano.gov/omb_nifty50.htm
Bar Association - lawyers who are interested in convergence
http://www.convergingtechnologies.org
NSE
http://www.nseresearch.org

California Representative Honda, a major nanotech advocate and educated supporter of the cause, made an exciting proposal to us and I have since received a message from his legislative assistant asking for input on draft legislation. Basically, Honda recognized that there are obstacles to moving the results from basic R&D into the marketplace. In particular, he says that there is a lack of funding for middle-ground, pre-commercialization work. Based on conversations with many of us, including a session with the brilliant minds of Stan Williams, and David Hackleman, that I was fortunate enough to attend came the idea of a public-private partnership for investing in nanomanufacturing. The proposal is for creation of some kind of nanomanufacturing investment entity within the Department of Commerce. We'll have to see where it goes and follow the interesting path of draft legislation....

Even without the innate “nerd pride” of an alum, one had to be impressed by Director Dr. Ned Thomas’ overview of the MIT Institute for Soldier Nanotechnologies (ISN). The nano-enabled soldier is becoming a reality. He showed us the battle suit with a hierarchical system of functions to protect the warfighter. The suit has networks of hollow fibers transporting fluids for heat management, hydraulics (actuation), medical drug delivery, and connectivity. It has exomuscles, adaptive, breathable, sealable surfaces, and is one scary looking piece of gear. Even more exciting....MIT now has a soldier nanotechnology design competition (like the famous entrepreneurial 50K contest that spawns companies). Nine finalist teams competed for thousands in prize money judged by military personnel. One of the winners, among many innovative ideas, caught my eye. We’ve all seen the movies where the Navy Seals silently move toward their target, giving each other hand signals to communicate without sound. What if the lead Seal was out of your line of sight? Well, “Surreptiles” uses a lightweight glove with accelerometers to translate the silent hand-arm signals into computerized messages for use when individuals are not in visual contact. The system even corrects for position, so you always receive the correct instruction no matter how you are oriented relative to the lead guy giving the signal. Not necessarily nanotech, but pretty clever! In the short term, Ned said that products available to our soldiers will be something that the men and women in uniform cited as one of their most pressing and needs: the discomfort and difficulty operating in wet conditions. Truly waterproof BDUs (Battle Dress Uniforms) are primary on the long list of needs. Already, one hundred nano-enabled completely waterproof, yet breathable, light uniforms are being tested by soldiers domestically with results reported by June. Finally, we learned that the senior military leadership are really interested in nano, having even setup a nanotech roundtable and giving serious input and time to the ISN. 
http://web.mit.edu/isn

ITEM: The president's fiscal year 2005 budget request for nanotechnology
programs at the Department of Defense (DOD) is $276 million, according to Clifford
Lau of the Office of the Deputy Undersecretary of Defense for Laboratories and
Basic Science. Although this is less than the $315 million the DOD will spend on
nanotechnology in FY '04, Lau says he expects a "substantial increase" in the FY
'05 enactment as a result of congressional plus-ups. Most of the decrease in the
request is contained in the budget of the Defense Advanced Research Projects
Agency (DARPA), where nanotechnology funding is slated to drop from $138 million
in FY '04 to $98 million in FY '05. "The reason is because some of the [DARPA
nanotechnology] programs are phasing out," Lau says. Nanotechnology funding at the
services would remain relatively stable in FY '05 under the budget request.

ITEM: Nanotechnology and U.S. Defense: The Challenges Ahead
April 7, 2004
Jim Hurd brings together a panel to address applications of nanotechnology for the military and homeland security. Shhhh! I heard there might be a special surprise guest there!
http://www.nanoscienceexchange.org/invite4704.html

Senator George Allen (R-VA), who ranked second in the “Nanotech’s Power Elite” listing (http://www.senate.gov/~allen/index.cfm?c=story&t=press&story=2004032355721.32125&fromSearchPage=1) and who, working with Wyden and Boehlert, introduced and passed the nanotechnology bill (the single largest multi-agency federally funded program since the space program) also took a significant amount of time out of his schedule to address us. Senator Allen discussed the “key investment in our future” and how he’s working to create the “conditions precedent” for successful nanotechnology innovation. He recognized that the work we are doing has an impact on our security and economic well-being. Senator Allen assured us that he will have a congressional nanotechnology caucus to inform elected leaders, making them conversant in the issues. In a generous gesture, we were all urged to participate. Finally, he spoke of the myths and stories warning of the dangerous applications of nanotechnology that are affecting the general public view. He urged that we take an active role in countering the scare tactics, explaining that we nanotechnologists have the power to educate.   

ITEM: After the Bill - Budget a Bit Short, But Network Coming Together
With the January release of the Bush administration's budget proposal, nanotech supporters got the first signal of whether the money will follow the recent enactment of a bill codifying the federal government's nanotechnology activities into law. The bill's supporters say they are satisfied that the administration has shown its commitment to nanotech even if the proposed funding fails to match the amounts authorized by the nanotech legislation.
http://www.smalltimes.com/document_display.cfm?document_id=7599

Director of NNCO Clayton Teague was up next and spoke about Responsible Development of Nanotechnology. Given the recent concerns, it was very timely to address regulation of nanotechnology. He confirmed that research in Fed Labs and private industry, seeks to characterize, understand and responsibly use nano materials. One must also realize that naturally occurring particles are nano: volcanic ash, soot, virus, bacteria, fumes, carbon black for photocopier toner. So these particles have been out there. The concern, like with GMOs, occurs with engineered nanoscale materials. But again, the government is already effectively regulating such particles under the toxic substance control act, and other relevant EPA legislation and existing regulatory standards. How do nanotechnology based products differ from conventional products? Our own local DOE Molecular Foundry is looking at the risk posed by nanotechnology based products. Overall, about 11%, or $106M of total NNI funding is going to health/environmental research.

ITEM: CONTROVERSIAL STUDY POINTS TO NEED FOR MORE FEDERAL RESEARCH
As scientists and others continue to debate the significance
of a recent study on the toxic effects of nanoparticles,
the controversy has highlighted a growing need for federal
research into the environmental and health effects of
engineered nanomaterials, policy makers and others say.
http://www.smalltimes.com/document_display.cfm?document_id=7658
http://www.technologyreview.com/blog/blog.asp?blogID=1344&trk=nl
http://www.smalltimes.com/document_display.cfm?document_id=7608

I was also lucky enough to meet Clayton's new Communications Director at NNCO. Among many important responsibilities, she elevated the NNI website to be a really useful nano portal. Please check it out and visit often, as she asked me to provide content for the constant updates that will be available on this extremely relevant resource.
http://www.nano.gov

Mark Modzelewski, of the Nano Business Alliance, always very insightful and fun, brought up a good point made by Quantum Investing author Steve Waite. Rather than say we are entering a new industrial age with the advent of nanotech, why not look at it as a new agrarian age? After all, we are talking about “growing” our needs, at an extremely efficient level. Calling it industrialization is actually a step backwards. It’s an interesting thought….On another note, Mark raised the point that we are facing a question in America that will only become more prominent as nanotechnology evolves: Will we be satisfied being an R&D center for the rest of the world and then outsourcing the manufacturing? He mentioned The Rise of the Creative Class, which I haven’t read yet, but intend to pick up. It’s a far reaching question, but one which we must address now, before our nano-devices say “Made in China.” 

ITEM: Merrill Lynch Initiates Nano Coverage
Merrill Lynch has established a nano index and is issuing research on the nano investing landscape. The listing even caught the attention of Senator George Allen (R-VA) who excitedly announced the index to the entire NNI audience. It is quoted intraday on the American Stock Exchange under the symbol NNZ. The Merrill Lynch Nanotech Index is an equally-weighted index of 25 nanotechnology companies
headquartered in the United States or traded through ADRs.
http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20040401005308&newsLang=en
http://www.ml.com/

ITEM: World Economic Forum Names 2004 Technology Pioneers - Focus is on Nano
Klaus Schwab ordered lobster and sang the praises of East Coast seafood last time I had dinner with him and his son Olivier in Boston. In a recently released report by his ultra-exclusive foundation, he (and strategic partners Apax Partners and Deloitte Touche) chose several nanotech companies as "World Economic Forum Technology Pioneers 2004." The honor went to some of our favorite home-grown west coast nanotech companies, including Nanomix, Alien Technology, and Nanosys. I expect Klaus to be enjoying some west coast delicacies soon. And of course, some local nanotech pioneers will be lucky enough to receive that coveted invitation to Davos to hobnob with the bigshots. 
http://www.weforum.org/technpioneers

Last but not least, we got some good news for the economy and for California in particular. The number of nanotech companies (775 actively doing nanotech in the US) and investments continues to grow, and the Small Times ranked us, California, as the #1 “Small Tech” hot spot. Congrats!

Hope this debrief was useful....Please send me any comments/questions.

Cheers!
David