Canadian Experience in Development of Nanotechnology Statistics: Pilot Survey On Nanotechnology
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1 Canadian Experience in Development of Nanotechnology Statistics: Pilot Survey On Nanotechnology Chuck McNiven Statistics Canada November 2007
2 Context The issue Development 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 challenges Measurement of evolving emerging technologies Definitions, nomenclature, fragmented data sources, policy framework not fully developed Great interest, limited resources The intended outcome A reliable set of validated and comparable statistics that can evolve with, and inform policy and strategy development
3 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?
4 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)
5 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.
6 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.
7 The Results: A profile of the nanotechnology sector in Canada In 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 mediumsized 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.
8 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
9 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 nanotechnologyrelated 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.
10 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
11 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
12 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?
13 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
14 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.
15 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
16 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
17 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
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