Canadian Experience in Development of
Nanotechnology Statistics:
Pilot Survey On Nanotechnology
Chuck McNiven
Statistics CanadaNovember 2007
Context
The issueDevelopment of systematic and consistent processes for measuring activity and investments to help inform strategy and policy decision making on the scientific, economic, health, environmental and social impacts of nanotechnology
The challengesMeasurement of evolving emerging technologies
Definitions, nomenclature, fragmented data sources, policy framework not fully developed
Great interest, limited resources
The intended outcomeA reliable set of validated and comparable statistics that can evolve with, and inform policy and strategy development
Core Questions
What is nanotechnology?
Who are the actors in nanotechnology?
Where is nanotechnology?
Why use nanotechnology?
What are the results of using nanotechnology?
How many resources have been committed to
nanotechnology?
How are the actors connected?
Definitional Challenges
No single definition of nanotechnology – an umbrella term for a suite of technologies that includes the characteristics of size, control, function and performance:
The study and manipulation of matter on a nanometer length scale (1 nm = 10-9 m = 1 billionth of a metre)
The ability to control matter on a nanometre length scale for the construction of new materials with novel properties (physical, chemical, biological) and/or functions (e.g. quantum effects)
The distinction between naturally occurring nanoparticles (ionic sprays); by-products (diesel emissions); and purposely engineered materials (carbon nanotubes, quantum dots)
Definitional Challenges
A challenge facing the survey, and indeed all research into the nature of an emerging technology, is the fact that nanotechnology is not a single product or process nor a single group of products or processes.
It is a broad spectrum of products and processes spanning Human Health, Agriculture, the Environment and other industries and classifications.
The sampling techniques are consistent with this situation, and the sample reflects not a single well-defined industry but a developing sector with a variety of characteristics, some known and some unknown
Data are collected directly from survey respondents questionnaires in paper format or in some cases phone interviews. Survey is mandatory.
Survey Process
The cross-economy survey conducted in two stages.
First, the Survey 0n Emerging Technology (SET) a simple questionnaire with five Yes/No questions was mailed to 11,800 firms.
Topics were biotechnology, bioproducts, functional foods & nutracuetical, nanotechnologies
ETS is a census of industries were these technologies have been observed or are thought to occur
Second, a section on nanotechnologies was inserted on the Biotechnology Survey questionnaire as a pilot survey.
Firms thought to be engaged only in nanotechnology received specialized instructions for completion
Stratification was made using these 3 variables: NAICS, province and size.
The Results: A profile of the nanotechnology
sector in Canada
In 2005 88 firms reported involvement in nanotechnology
91% of firms were active in research and development (R&D)
27% reported that they were in the production or on-market stage
Firms reported the greatest involvement in nanomaterials-43%, nanobiotechnology 42%, followed by nanomedicine, nanophotonics and nanoelectronics
Small firms accounted for 81% of firms, large and medium-sized firms accounting for 10% and 8% of firms.
Provincial distribution of the firms revealed 30 firms in Ontario (34%), followed by Quebec with 25 (28%), British Columbia with 19 (21%) and Alberta with 12 (14%) firms. The remaining firms were spread across Canada.
Provincial profiles followed patterns similar to those observed for Canada as a whole.
Financial details
Firms reported $28 million in nanotechnology revenues
in 2005, an increase of 19% from 2004
A near-doubling of revenues ($55.8 million) is forecast
by respondents for the year 2007
Quebec accounted for the majority of revenues (52%),
with Ontario following at 22%, British Columbia at just
under 14% and Alberta at 12%
Financial data for the rest of the provinces are not
available due to the small number of respondents in
those provinces
72 small firms earned 88% of all nanotechnology
revenues in 2005
Financial details
Nanotechnology R&D expenditures totaled just over $40 million a 12% increase between 2004 and 2005
Forecast of increase of $18 million a year by 2007
Contracted out R&D made up about 6% of total nanotechnology R&D expenditure.
93% of nanotechnology R&D is performed in small firms, they account for 82% of all firms and 88% of all nanotechnology revenues.
22 firms attempted to raise capital for nanotechnology-related activities. Of these, only eight small firms were successful in raising just over $16.5 million.
This demonstrates a fairly significant failure rate and could be significant in the future growth of the nanotechnology sector and a concern to stakeholders.
Intellectual Property
Surprisingly, given the early stage of development of the nanotechnology sector, 34 firms reported a total of 559 intellectual property (IP) instruments in 2005
Patents 60%
Pending patents 28%
Technology transfer agreements 7%
Licensing agreements 3%
The unexpectedly high number of patents has been investigated and verified
The survey asked about the number of patents and other IP instruments without geographic parameters, therefore, it is possible that some double counting may have occurred raising the total number reported
55 firms had collaborative arrangements, 80% were small firms
Human Resources
In 2005, 88% of the 380 nanotechnology employees worked in small nanotechnology firms
The majority (76%) have full-time duties as nanotechnology employees, 24% with part-time nanotechnology duties
15% of firms, virtually all small firms, reported having difficulty attracting nanotechnology employees, with scientists and technical staff shortage the most commonly cited
There is a regional component - 40% of firms in British Columbia reported difficulty finding nanotechnology staff, more than double the percentage of the next highest province (Quebec at 19%) and Canada as a whole. In British Columbia, scientist and technical shortages the most common difficulty reported
What we discovered
These results are just one set of possible indicators of
nanotechnology activity in Canada
A single pilot survey is not robust enough to definitively
address all the issues surrounding nanotechnologies
Gaps include coverage and public nanotech activity
such as funding and performers
By placing the results of the survey in the context of a
framework for the development of indicators, the results
begin to shed light on some key questions
Who, what, where, why, how many, how connected?
What we discovered
What is nanotechnology?
For statistical purposes further discussion of definitions is
required, but this survey provided an empirical test of one
definition, understood by respondents
Where is nanotechnology?
Nanotechnology is concentrated in nanomaterials and
nanobiotechnology
However, much work remains to further refine where in
the economy nanotechnology will be found
This is a primary challenge facing all emerging
technologies
Nanotech is found in small firms
What we discovered
Why use nanotechnology? What are the outcomes?
Firms reported $28 million in nanotechnology revenues. However, the more than $40 million in nanotechnology R&D could be viewed as an investment in the firm and the future. The longer-term impacts are areas for future consideration.
How many resources are committed to nanotechnology?
With 380 employees and over $40 million in R&D (46% increase forecasted for 2007), there is a small but growing commitment of resources to nanotechnology. Of significance is that only 8 of 22 small firms that attempted to raise capital were successful.
How connected?
Over 70% of nanotechnology firms reported collaborative arrangements with universities, other firms and government. As the needs of the firms change so too will these connections.
What we discovered
Despite the challenges facing systematic measurement of nanotechnology, precedent can be found in the approaches undertaken and results seen
The measurement of nanotechnology is in its infancy and much work and many challenges remain with respect to monitoring, measuring and analyzing this emerging technology
This pilot survey on nanotechnology has successfully begun to address some of the critical questions:
Respondents were able to understand and respond to questions on the concepts
It demonstrates that nanotechnology at the firm level can be measured on a national and sub-national level
It provides useable data on variety of subjects
Related Work
Questions are included on:
Survey of Innovation in Services
Research & Development in Canadian Industry survey. Uses tax and survey data of larger R&D performers
Survey of Advanced Technologies-2007, currently in collection
Emerging Technology Survey – 2003, 2005, 2007
Definitions & concepts were tested with respondents and accepted
Aids in locating sectors where nanotech is happening
Negotiations under way to include on Federal S&T survey – funders and performers
Next steps
Included in 2007 Emerging Technology Survey
Larger frame, better coverage
More detail on involvement
Research & Development in Canadian Industry (large R&D performers) results expected November 2007
Inclusion on Federal S&T survey potential
Continuing work with international community
Your questions and comments are invited