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The State of Nanotechnology
by: Jae Kim
February 25, 2005
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Page: 1 2
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| Dr. Joseph Stroscio,
Nano-Scientist at NIST
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One simply needs to observe nature to see atomic self assembly in action. For example, look in the mirror. We are living proof. Atoms and molecules self assemble to form cells. Dr. Stroscio states, "Self-assembly resembles many of the processes used in biology, and therefore it is a powerful method, but learning how to harness the processes and integrate them with other technologies is a challenge."
The challenge is two fold. The first is to understand the laws that govern self assembly. Using cells for example, what causes the cell parts to develop? The answer appears to lie in DNA. So using cells as an analogy, understanding how DNA programming works is part one. And assuming part one is understood, the second endeavor is to then figure out how to "program" molecules to self assemble.
This is an extremely difficult endeavor. But consider this: we are at the birth of a new age of science. Just as no one fifty years ago could have imagined the Internet today, no one can imagine what lies ahead twenty years from now. In fact, the wondrous pace of technology is accelerating. Dr. Stroscio notes, "Take for example, the atomic force microscope [1986] ... you would not have foreseen that it would [also] be used as a data storage device by driving thousands of tips in parallel as in the IBM millipede project ... I think the outlook is very exciting, as we have the capabilities to play with the basic building blocks of matter."
For investors, what are the opportunities for investing in nanotechnology? Given the mystery and arduous state of molecular self assembly, there is nothing even remotely close to commercialization. Fortunately, there are some nanotechnology products already in use and a bunch that are on the edge of commercialization. The range is wide including: medicine, sensors, fuel cells, solar panels, flat panel displays, and circuit boards. These products do not necessarily involve manipulated atoms and self assembly, but it involves work done at the nano-scale. For example, carbon nanotubes are being researched in flat panel displays due to its ability to emit electrons via a quantum effect called tunneling.
Given the difficulty of understanding nanotechnology, for the non-scientifically oriented investor who understands cash flow statements but not necessarily the esoteric discipline of quantum physics, an interesting play is Harris & Harris Group, Inc. (Nasdaq: TINY). It is a public venture capital company that only invests in tiny technology start-ups including nanotechnology, microsystems, and MEMs. Mind you, this company does not generate revenue. It is a classic venture capital firm that makes investments in start-ups with the intent of their start-up to be either sold or to go public (IPO). At that point, the capital gains are reaped by TINY and its valuation goes up. Granted, by virtue of its venture capital status, the level of risk is very high. However, if you wish to take a stab at a basket of firms involved with nanotech and are willing to take the risk, then TINY is a one stop shop.
Disclaimer: At the time of this writing, Mr. Kim did not hold any shares of TINY. As always, do your own due diligence and caveat emptor.
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