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The Nanotech Mirage--A Differing View
September 16, 2008

I received the comments below from Dr. Adolfo Gutierrez, director of uBricks Research (Troy, New York), after we posted September’s “Movers & Shakers” podcast interview of Robert Geer, the chief academic officer and professor of nanoscale science at the College of Nanoscale Science and Engineering at the University of Albany, New York. Geer’s views about nanotech’s future coincide with those of the vast majority of our industry and others (including yours truly), which is why I thought you might want to read what Gutierrez had to say, since one so rarely runs into this magnitude of skepticism about nanotech. Geer declined to reply, stating instead that he stands by every single word of his podcast.

 

I’ll be very interested in seeing what you, the readers, think of Gutierrez’s views.

 

* * *

 

I read Dr. Robert Geer’s interview in SI about the serendipitous nature of “Nanotech’s Incredible Reach.” Although I share the dreams and hopes for nanoscience, I also think that the whole nanotech field is overdue for a reality check.

 

We seem to be stuck in the notion that nanotechnology is new science that opens new frontiers. However, nanotechnology seems to be a marketing branding term, not a genuine and coherent research field. Every physicist, chemist, biochemist, device engineer, materials engineer, etc., has dealt forever with small-scale science. This has been true since at least Aristotle’s time. The notion that atoms can now be manipulated is also not new as evidenced, for example, by chemical synthesis. The only new thing is that we can now “observe” and “visualize” atoms better than before. Perhaps this visual experience is the real source of much of the past 10 years of nano-marketing excitement. Unfortunately, productive engineering at nanoscale is much more complex and costly than dramatic visualizations or physical probing; we are all painfully acknowledging this undeniable reality.

 

I have pioneered several MEMS and NEMS devices, and developed unique testing methods and instruments. In 1993, I originated the phrase, “mLab-on-a-Chip,” started some businesses based on micro/nano technologies, and developed a few electron nanodevices; however I’ve always been reluctant to brand these pursuits as “nanoscale” anything, as dimension per se is an abstraction with little meaning in the physical world. It is the manifestation of physical effects that defines the scientific nature of a research field.

 

Most traditional disciplines don’t assign importance to the dimensional scale of the structures and processes involved; but only to functional outcomes—at any scale. For example, a researcher working in structures inside cells and microtubule transport processes has never called himself a nanobiologist; he’s a functional microbiologist, a structural cell biologist or a biochemist. Likewise, no chemist would call himself an “atom nanoengineer,” or a structural biologist a “life nanoengineer.” They practice organic, inorganic, bio or structural chemistry based on functional outcomes, not dimensional scale.

 

Because language and reasoning are closely linked, the abuse of “nanoscale” as an all-encompassing word has had a distorting effect among scientists, policy makers, entrepreneurs and investors. This is important because young and inexperienced people are pursuing “nanocareers” in the hope that there will be a reward at the end of the formative “nanocycle,” but there might be no career at all in a product, market and functionalities-driven world.

 

Nanotechnology, 10 years into the branded nano-era, has failed to deliver valuable products. Moreover, those involved in the field have resorted to wide-ranging definitions to include all kinds of functionally rich building blocks such as DNA bases, structural proteins, integrated sensors, logic gates, meta materials, and many other functional building blocks sharing dimensional scales but lacking relationships to functional effects.

 

Is nanotech a mirage without foundation? Nanotube applications, for one, would
appear to indicate the contrary.


Professionals of functionally defined fields are amused by this on-the-fly nano-marketers’ redefinition of concepts. In fact, most of these now nano-concepts predate the nano-era and will, most likely, postdate it. The scientific and engineering challenges associated with these functional fields remain as challenging now as they were before the era of “nano branding.”

The defocusing effects of defining a field based on scale are serious and can lead to research dilution, lack of synergies and poor-quality science. Imagine civil and device engineers, immunologists, physicians, and botanists defining themselves, their research fields as “meter-scale.” research efforts. How good would the resulting quality of those defocused efforts have been?

 

I see the adverse effects of nanoscale everything first-hand as a researcher, investor and entrepreneur in the “nanospace”; where nanotech has been so far one of the worst-performing scientific efforts in recent memory. After spending in excess of $30 billion globally on R&D since 1999, the world still awaits functional breakthroughs, products and payoffs. Naturally, funding is collapsing at a fast rate.

 

Delaying valuable outcomes under the forgiving mantle of “excessive difficulty” would be acceptable except that there’s a long line of people waiting with their own non-nanobranded research agendas, and they’re beginning to win policy battles, research dollars, and investors’ confidence.

 

Boards are quickly abandoning their support for “nanoelectronics”. Five of the main electronic companies have thrown in the towel since March of last year, and investors have all but dried up nanoelectronics disbursements. National governments are slowing down funding and the field is retrenching the funding of structures that are difficult to qualify as objective or even competitive. Nanoelectronics research seems headed for a long and cold winter, deeply underfunded, clinging to fewer than five corporations worldwide, and a dozen surviving startups. Perhaps the business community is becoming increasingly uncomfortable with the very unclear risk vs. reward proposition offered by scientists and engineers.

 

Intel does not refer to small electronics as “nanoelectronics,” it simply sees itself as developing awesome killer IT products for the next 100 years; in fact, the company discourages research under the mantle of “nanoelectronics.” Interestingly enough, it’s still a leader in nanoscale R&D.

 

IBM, on the other hand, is a big supporter of nanoelectronics. It regularly reports nano-breakthroughs, a most unexpected outcome as IBM has a relatively small R&D budget compared to the remaining integrated electronics industry. Regardless, IBM’s real challenge is to convert its nano R&D into products that can contribute to the company’s bottom line, as suggested by the recent Lucent-Alcatel decision. Up until about 18 months ago, Lucent-Alcatel used to report nano breakthroughs with an intensity similar to IBM’s, but now they are being disbanded and their core research facility, Bell Labs, is officially out of integrated electronics basic and applied research, and their IC research fab has been shut down. They couldn’t convert the results of their research into product lines fitting their remaining businesses. This is a lesson that should have a focusing effect on the few remaining players.

 

Once the “nano” brand losses its remaining value, will we once again focus our attention on functional outcomes and not on dimensional scale? This is a major issue, because we may well choose to focus R&D efforts on die stacking and complex packaging, advanced interconnects, parallel architectures and software optimization; and through that extend a functional version of Moore’s Law that emphasizes end-to-end productivity gains, instead of steady miniaturization for its own sake.

 

Product focus always results in an efficient narrowing of options. Nano investments are delivering very little return because they are not bounded; they are spread very thinly across human knowledge. The Apollo Program put us on the moon by spending an amount comparable to that spent globally so far on nano research, over a similar period of time. The outcome was somewhat different because the goal was clear.

 

Dr. Geer’s institution is most likely on the right short-term research track because it endorses the International Technology Road Map for Semiconductors, an industrial map that imposes clear technology goals, and resultant focusing effects; regrettably this is not true for nanotechnology as a whole, where scattered efforts seem to have been the rule.


Posted by Alexander E. Braun on September 16, 2008 | Comments (12)


September 16, 2008
In response to: The Nanotech Mirage--A Differing View
Jason Latimer commented:

Dr. Gutierrez refers to “nanoscale” as merely a “branding” term. This is not entirely correct. It might only be a philosophical determination, but there is a very real relation among all nanoscale disciplines: working in this realm involves a genuine discontinuity between it and what has come before. It is necessary to work and think in new terms, having to take into account effects that do not exist in “meter-scale,” using tools, processes and procedures required only when working at these dimensions. This is why no one has ever described himself as working in meter-scale; it wasn’t necessary.




September 16, 2008
In response to: The Nanotech Mirage--A Differing View
Jay Stern commented:

It's surprising that anybody doing advanced work like Gutierrez would reject the idea of nanotechnology. Who was doing carbon nanotubes 10 years ago? What about quantum dots? What about all the processing that must done at an atomic scale, like ALD?




September 16, 2008
In response to: The Nanotech Mirage--A Differing View
SiGuy commented:

No nanotech? Can you say "lithography"? How about "double patterning"?




September 16, 2008
In response to: The Nanotech Mirage--A Differing View
WGS commented:

While I don't agree that the field of nanotech is bogus as the writer implies, there's no doubt that there's a lot of hype connected with it. It's like everything has to be "green" in one way or another today. Misuse leads to people (aka investors) shrugging things off.




September 16, 2008
In response to: The Nanotech Mirage--A Differing View
Adolfo Gutierrez commented:

Clarification! I did not say that nanotechnology was bogus, I said it was defocused, lacking functional objectives (except of nano-electronics where the payoff is being questioned by established leaders), thus the huge amount of capital used to deliver relatively few products. Low productivity! Nanotubes work has been well underway since at least 1990, and much before (1970's) according to some authors. The last issue of BusinessWeek, devoted to innovation, also brings up the debate going on in Washington and elsewhere about the need to have concrete challenges versus investing in platform technologies across the spectrum of scientific interests. Paul Romer's work and other leading economic research, shows that good things for society flow from solving important problems widely perceived as complex challenges, not from randomly pouring money in interesting science in the hope of creating products and nurturing entrepreneurs. Nanotechnology is being equated in this BusinessWeek article, as far as productivity goes, to biotechnology; a field that has delivered very few breakthrough innovations (and poor job creation and ROI on capital) following massive investments. Times are tough, we need to focus resources to go somewhere, or risk going broke, trying to go everywhere!




September 17, 2008
In response to: The Nanotech Mirage--A Differing View
Doc D commented:

Everything today is hype, and that includes science and technology. If you don't hype what you're doing you don't get the funding. It's called shooting yourself in the foot.




September 22, 2008
In response to: The Nanotech Mirage--A Differing View
Adolfo Gutierrez commented:

This is precisely the reason why in a market economy quantifiable product performance is so important, it weeds out hype and enables the fit to survive and succeed. Include subsidies, and hype has sometimes an edge, at least for a short while, until politicians develop a new vision of economic development, forget the old one; and a new wave of hype starts. Debt keeps climbing, inflation comes and standards of living fall. Were the steel industry, Silicon Valley or most of our industrial past built on hype or innovative products?




September 23, 2008
In response to: The Nanotech Mirage--A Differing View
Martijn commented:

There is quite a lot of interesting developments under the flag of nanotechnology. However, these are large uncorrelated patches of physics, chemistry, and biology. What do self assembled monolayers have in common with nanoscale span valve transistors? Nothing. Nano is just a buzz word that you can put on your interesting, maybe promising, hopefully useful, research to get the funding from policy makers that do not dare to acknowledge that they not understand what you are talking about. The only thing that might be a real development of the last decade is that research is more and more focussed on the boundaries between the traditional disciplines. This has to do with the dimensions of the systems under study, but this does not make nano in itself a new revolutionary kind of science or technology.




September 23, 2008
In response to: The Nanotech Mirage--A Differing View
Scott commented:

As far as investment goes nanotechnology has been a horrible waste of money, but then so was a majority of the research done at Bell Labs (from AT&T's point of view.) However, I believe most scientist would disagree, if the research done at Bell Labs was characterized as a waste. This is because in the case of Bell Labs and much of the nanotech research being performed, the research is basic research. While, the market does a decent job of valuing applied research which can benefit a single company and has a time scale of 5-10 years. The value of basic research is only evident on the products it influences on a national scale and a time frame of 20+ years. Therefore, to those currently investing in nanotechnology, it may turn out to be a waste of money. But 20 years down the road, nanotech research performed today may contribute great value to the US economy.




September 29, 2008
In response to: The Nanotech Mirage--A Differing View
Mike nano ctr manager commented:

Before we get too polarized, let us take a step back and separate the effects from the cause. It is possible that both sides are correct, I posit the real problem is the unprecedented attempted commerciallization of nano before there are real products to sell. Never before have buisiness people been so in front of an emerging technology, so willing to invest and accept the possibilities as milestones. I see huge tracts of the IP landscape being encumbered and fought over even before we can begin to understand or controll the processes that will make them viable. The Semi boom taught investors that booms were possible, the dot-com boom taught people that you can make tremendous profit by catching the aftershocks from a breakthrough. Of course researchers are going to talk about what they are doing as the next big thing, that is why they do what they do. The trouble here is that too many investors are buying into these dream and trying to template 3-5 year investment strategies onto 10-20 year experiments. I am not sure why anyone has to be "




September 29, 2008
In response to: The Nanotech Mirage--A Differing View
Mike nano ctr manager commented:

Before we get too polarized, let us take a step back and separate the effects from the cause. It is possible that both sides are correct, I posit the real problem is the unprecedented attempted commerciallization of nano before there are real products to sell. Never before have buisiness people been so in front of an emerging technology, so willing to invest and accept the possibilities as milestones. I see huge tracts of the IP landscape being encumbered and fought over even before we can begin to understand or controll the processes that will make them viable. The Semi boom taught investors that booms were possible, the dot-com boom taught people that you can make tremendous profit by catching the aftershocks from a breakthrough. Of course researchers are going to talk about what they are doing as the next big thing, that is why they do what they do. The trouble here is that too many investors are buying into these dream and trying to template 3-5 year investment strategies onto 10-20 year experiments. I am not sure why anyone has to be "




October 2, 2008
In response to: The Nanotech Mirage--A Differing View
Adolfo Gutierrez commented:

I think you are correct in suggesting the investors got started too early. This is a well known effect of R&D subsidies. It is also true that nanotechnology is very hard to define, thus difficult to apply performance metrics. The few metrics that have come out show a really bad economic performance. Poor job creation, poor capital formation, poor aggregate new capital attraction, and as a result, we are beginning to see subsidies and tax subsidies exhaustion. Furthermore, most of the major private money did not come from investors, it was mostly from corporate realignments; and we all know how skilled corporations are at growth opportunity discovery. The dismal outlook for the semiconductor industry as Moore’s law fades away makes even harder to deliver corporate successes. Following reinsurer’s lukewarm reception to the field due to perceived potential direct and implied liabilities, most large companies involved in materials slowed down investments. R&D might eventually clear these hurdles; but only after making at first them much taller. Early environmental and health assessments are having an adverse impact, particularly at the corporate level. I believe, if anything, the reason why nanotechnology is fading away is because there was not enough qualified and experienced entrepreneurship in the field; that is minimal aggregate risk-taking that is to say that, entrepreneurs and VCs did not follow the subsidies in large enough numbers. Perhaps, poor communication between the scientific community and the entrepreneurial/investing community also played a role. I believe that the future of nanotechnology is still latent as long as the field deeply specializes around functional outcomes; and until good entrepreneurial teams move in and/or scientists become more entrepreneurial, the field will have minimal impact in the well being of society and negative returns on investment. Let’s hope that society has the patience to wait.





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