Imagine a single area of scientific discoverywith the potential to enable a wealth ofinnovative new technologies across a vastarray of fields including healthcare, infor-

mation technology, energy production andutilization, homeland security and nationaldefense, biotechnology, food and agriculture,aerospace, manufacturing, and environmentalimprovement. Nanoscience, the study of theunique properties of matter that occur atextremely small scales, has this potential.

Advances in nanoscience and nanoengineeringare already ushering in new applications—ornanotechnologies—that are leading to improvedproducts across a broad realm of sectors, fromtextiles to electronics. Some of these improvedproducts are already available, including improvedcatalysts, stain resistant fabrics, better sunscreens,superior dental bonding materials, high resolutionprinter inks, digital camera displays, and highcapacity computer hard disks, to name a few.

In addition to making existing products andprocesses better, nanotechnology promises break-throughs that will revolutionize the way we detectand treat disease, monitor and protect theenvironment, produce and store energy, and buildcomplex structures as small as an electronic circuitor as large as an airplane. For example, micro-scopic devices small enough to be carried in thehuman bloodstream may someday monitor thebody for early signs of disease and deliver treat-ments that are targeted to the appropriate cells ofthe body. Exquisitely sensitive and selectivesensors could be deployed in uses ranging fromenvironmental stewardship to food safety tohomeland security. And materials with superiorcharacteristics—many times stronger than steelbut a fraction of its weight, for example—couldbe used to build better cars, planes, spacecraft,buildings, and creations we have yet to imagine.Clearly, nanotechnology has the potential toprofoundly change our economy, to improve ourstandard of living, and to bring about the nextindustrial revolution.

Nanotechnology: From Imagination to Reality

Figure 1. Scanning electron-microscope image of topedges of thin sheets of polystyrene and polymethyl-meth-acrylayte. The ordered arrangement of thestripes , each about 24 nm wide, on the right wasgenerated by a striped nano-pattern on the substratesurface. The left part of the substrate was unpatterned(courtesy P.F. Nealey and S.O. Kim, University ofWisconsin).

The scientific discoveries that will enable thesebreakthroughs entail more than simply the minia-turization of existing technologies. Nanoscalescience, engineering, and technology, collectivelyreferred to as nanotechnology, define research anddevelopment (R&D) aimed at understanding andworking with—seeing, measuring, and manipu-lating—matter at the atomic, molecular, and

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supramolecular levels. This correlates to lengthscales of roughly 1 to 100 nanometers. At thisscale, the physical, chemical, and biologicalproperties of materials differ fundamentally andoften unexpectedly from those of the corre-sponding bulk material. Nanotechnology R&D isdirected toward understanding and creatingimproved materials, devices, and systems thatexploit these fundamentally new properties,phenomena, and functions. An example of thetype of nanoscale structures that can be grown byhighly controlled fabrication processes is shown inFigure 1.

With any new and disruptive technology, andparticularly one that has significant potential forextremely broad impact, there will be societal andethical implications. Understanding these impli-cations and ensuring that their consideration is

integrated with the development of the technologyis vital to achieving the maximum societal benefit.The Federal R&D program includes societal andethical implications as one of its principalelements.

In order to coordinate the multiagency FederalR&D program in nanotechnology, the NationalNanotechnology Initiative (NNI) was establishedin FY 2001. The goals of the NNI are to: (1)conduct R&D to realize the full potential of thisrevolutionary technology; (2) develop the skilledworkforce and supporting infrastructure needed toadvance R&D; (3) better understand the social,ethical, health, and environmental implications ofthe technology; and, (4) facilitate transfer of thenew technologies into commercial products.

National Nanotechnology Initiative

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Recent achievements in nanotechnology funded in whole or in part by the National Nanotechnology Initiative■ Use of the bright fluorescence of semiconductor nanocrystals (quantum dots) for dynamic

angiography in capillaries hundreds of micrometers below the skin of living mice—about twicethe depth of conventional angiographic materials and obtained with one-fifth the irradiationpower.

■ Nano-electro-mechanical sensors that can detect and identify a single molecule of a chemicalwarfare agent—an essential step toward realizing practical field sensors.

■ Nanotube-based fibers requiring three times the energy-to-break of the strongest silk fibers and15 times that of Kevlar fiber.

■ Nanocomposite energetic materials for propellants and explosives that have over twice theenergy output of typical high explosives.

■ Prototype data storage devices based on molecular electronics with data densities over 100times that of today’s highest density commercial devices.

■ Field demonstration that iron nanoparticles can remove up to 96% of a major contaminant(trichloroethylene) from groundwater at an industrial site.

National Nanotechnology Initiative

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... By Improving FundamentalUnderstandingThe state of nanotechnology today representssomething of a paradox. On the one hand, newproducts using nanotechnology have beendeveloped and are in the marketplace. On theother hand, understanding of the underlyingproperties of nanoscale materials and structures isstill at a rudimentary level. Many existing modelsfor explaining material, device, and systembehavior do not extrapolate to the nanoscaleregime. In order to maximize the development offuture innovations, a significant portion of theNNI investment is directed toward basic researchto achieve a fundamental understanding ofnanoscale properties and processes.

Basic research, even when aimed at a specificproblem, can lead to surprising new results. Suchsurprises frequently are the bases for the mostinnovative technological advances. Therefore, abroad-based, balanced, knowledge-orientedresearch investment is crucial not only toadvancing the frontiers of science, but also torealizing the full economic potential of nanotech-nology. The surprising discoveries and newresearch tools that result from investment innanotechnology research will undoubtedly havefar-reaching impacts in other fields of science andengineering as well. Many agencies such as NSFand DOE have a focus on support for funda-mental research.

As it has in the past in areas such as infor-mation technology and biotechnology, investing inbasic research in nanotechnology is expected tolead to significant, new economically valuabletechnologies. However, the time to take a conceptdeveloped through basic nanotechnology researchto a commercial product is beyond five or even tenyears—or, for truly fundamental research, may bealtogether unknown. Therefore, private investorsare not generally in a position to provide thenecessary financial support. Because nanotech-

The National Nanotechnology Initiative: Fueling Innovation...

nology is of such critical import to U.S. competi-tiveness, both economically and technologically,even at this early stage of development, it is a toppriority within the Administration’s R&D agenda.

... By Focusing onApplicationsA broad, balanced basic research program bothcomplements and supports more focused workaimed at incorporating scientific discoveries intoinnovative technologies. Many agencies such asDOD, DOE, EPA, NASA, NIH, NIST, andUSDA support applied research aimed at devel-oping technology related to the agency’s mission.Federal investment in a combination of funda-mental and applied research will move novelconcepts closer to applications that are useful forboth government and commercial purposes.

... Through MultidisciplinaryCollaborationsAnother aspect of nanotechnology R&D worthnoting is the key role played by multidisciplinaryand interdisciplinary efforts. That is, advances willbe built upon progress in more than one area ofresearch or on truly collaborative interactionsamong researchers from various disciplines. Akey component of the NNI is coordination of theFederal investment and strengthening of intra-and interagency efforts fostering multidisciplinaryresearch.

... By Facilitating TechnologyTransferAt this early stage, an important mechanism bywhich nanotechnology can find its way intocommercial applications is through interactionamong industry, academic, and governmentresearchers. Such networking and partnering is

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1M.C. Roco. 2002. “International Strategy for Nanotechnology

Research and Development,” Journal of Nanoparticle Research,

Kluwer Academic Publishers, Vol. 3, No. 5-6, 2001, pp. 353-360,

as updated April 5, 2002: http://nano.gov/intpersp_roco.html.2R.W. Siegel et al. 1999. Nanostructure Science and Technology,

Kluwer Academic Publishers, Chapter 8, p. 133:

http://www.wtec.org/loyola/nano/08_01.htm.

facilitated and encouraged under the NNI by theestablishment or support of centers, networks, andfacilities that are available to researchers from allsectors. Examples include the existing NationalNanofabrication Users Network (NNUN) and asuite of Nanoscale Science Research Centers(NSRCs), each with a specific focus, to becolocated at Federal laboratories across thecountry. Interaction among researchers fromvarious sectors is also facilitated under the NNIthrough the organization of topical workshops.

Additionally, small businesses, which arefrequently at the forefront of the development ofnew, high technology products, can receivesupport through the agency-run Small BusinessInnovation Research (SBIR) and Small BusinessTechnology Transfer (STTR) programs directedspecifically at nanotechnology-based solutions. Agoal of all of these efforts is to expediteknowledge transfer and, ultimately, to facilitatecommercialization of nanotechnology. Byaddressing measurements, standards, andmanufacturing directly in the grand challenges,the NNI is ensuring that the appropriate infras-tructure is developed to facilitate the rapidcommercialization of laboratory successes.

... For Enhanced U.S.CompetitivenessThe United States is not the only nation torecognize the tremendous economic potential ofnanotechnology. While difficult to accuratelymeasure, some have estimated that worldwide

government funding has increased to about fivetimes what it was in 1997, exceeding $2 billion in2002.1 In the United States, the Federalinvestment in nanotechnology R&D has increasedfrom $116 million in FY 19972 to a request of$849 million in FY 2004. In order to realizenanotechnology’s full potential and to maintain acompetitive position in the worldwide nanotech-nology marketplace, the Federal Government’sinvestment will continue to play a critical role inaccelerating scientific discovery and nurturing newtechnologies and fledgling industries.

... ResponsiblySince the inception of the NNI, assessing theimplications of the technology has been anintegral part of the planning and programs of theInitiative. Research on implications for humanhealth, society, and the environment is increas-ingly being emphasized as tangible new nanos-tructures and nanomaterials are discovered andnew nanotechnology products are developed. Theresults of such research are being taken intoconsideration by those Federal agencies whosework is directed at regulatory issues.

National Nanotechnology Initiative

This report describes the multiagencyNational Nanotechnology Initiative(NNI), which was established in FY2001. The 15 agencies participating in

this program have diverse missions, but eachexpects to derive benefits that support its missionand to advance national priorities through anincreased basic understanding of nanoscalephenomena and the development of noveltechnologies.

Organization and ManagementThe NNI is an interagency effort aimed atmaximizing the return on the FederalGovernment’s investment in nanoscale R&Dthrough coordination of funding, research, andinfrastructure development activities at individualagencies. Ten of the Federal agencies partici-pating in the Initiative have funding dedicated tonanotechnology R&D. Other Federal organiza-tions perform related studies and research, applytechnologies based on the results from those

agencies performing nanoscale R&D, and partic-ipate in various NNI activities (See box below forlists of both sets of agencies).

In addition to sponsoring research, Federalsupport through the NNI provides crucial fundsfor the creation of university and governmentfacilities with the specialized equipment and facil-ities required for nanoscale R&D. Federalsupport also helps educate the nanotechnologyresearchers of the future, as well as the workforcenecessary for the growing use of nanotechnologyin industry, primarily by providing funds forundergraduate, graduate, and postgraduatetraining in nanotechnology-related disciplines.The NNI plays a key role in fostering cross-disci-plinary networks and partnerships, and in dissemi-nating information to participating agencies andto the public, through workshops and meetings, aswell as via the Internet (www.nano.gov). Finally,it encourages businesses, especially smallbusinesses, to exploit the opportunities offered bynanotechnology.

NNI Program Overview: Interagency Coordination in Support of National Priorities

Federal agencies with R&D budgets dedicated to nanotechnology research and developmentDepartment of AgricultureDepartment of Commerce (in particular, the National Institute of Standards and Technology)Department of DefenseDepartment of EnergyDepartment of Health and Human Services (in particular, the National Institutes of Health)Department of Homeland Security (in particular, the Transportation Security Administration)Department of JusticeEnvironmental Protection AgencyNational Aeronautics and Space AdministrationNational Science Foundation

Other agencies participating in the NNI Department of StateDepartment of TransportationDepartment of TreasuryFood and Drug AdministrationIntelligence Agencies

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Nanotechnology on a Fast TrackThe transition of nanotechnology research into manufactured products, while limited and preliminary, has already hadsignificant impact. For example, a new form of carbon—the nanotube—was discovered in 1991. In 1995 it was recog-nized that carbon nanotubes were excellent sources of field-emitted electrons. By 2000, the “jumbotron lamp,” ananotube-based light source that uses these field-emitted electrons to bombard a phosphor, was already available as acommercial product. By contrast, the period of time between the modeling of the semiconducting property ofgermanium in 1931 and the first commercial product (the transistor radio) was 23 years.

Another example of rapid insertion of nanotechnology into usefulapplications is in the field of wear-resistant coatings. In the mid-1990s nanoceramic coatings exhibiting much higher toughnessthan conventional coatings were first developed. Beginning in1996, the DOD supported partnerships among the Navy,academia, and industry to develop processes suitable for use inmanufacturing and to evaluate the coatings for use in the marineenvironment. In 2000, the first nanostructured coating wasqualified for use on gears of air-conditioning units for U.S. Navyships; an example of such a gear is shown at left. In 2001, the

technology was selected to receive an R&D100 Award. DOD estimates that use of the coatings on air valves willresult in a $20 million reduction in maintenance costs over 10 years. The development of wear-resistant coatings bythe DOD is clearly allied with its mission, yet will lead to commercial applications that can extend the lifetime ofmoving parts in everything from personal cars to heavy industrial machinery. (Photo above courtesy Robert Rigney,A&A Co.)

The NNI is managed within the framework ofthe National Science and Technology Council(NSTC). The NSTC is the principal means bywhich the President coordinates science andtechnology programs across the FederalGovernment, providing policy leadership andbudget guidance. The NSTC’s Subcommittee onNanoscale Science, Engineering, and Technology(NSET) coordinates the plans, budgets, programs,and reviews for the NNI. The Subcommittee iscomposed of representatives from each partici-pating agency, the Office of Science andTechnology Policy, and the Office of Managementand Budget.

The National Nanotechnology CoordinatingOffice (NNCO) serves as the secretariat to theNSET Subcommittee, and supports theSubcommittee in the preparation of multi-agencyplanning, budget, and assessment activities. Toadequately support the growing NNI activities,the position of NNCO Director was changedfrom part-time to full-time in April 2003. The

NNCO also serves as the point of contact onFederal nanotechnology activities for governmentorganizations, academia, industry, professionalsocieties, foreign organizations, and others.Finally, the NNCO develops and makes availableprinted and other communications materialsconcerning the NNI, and maintains the Initiative’swebsite.

The Administration is focusing significantattention on the NNI. In order to furtherstrengthen the Initiative, the President's Council ofAdvisors on Science and Technology (PCAST)has begun an external review of the NNI. ThePCAST review will include a comprehensiveassessment of the current NNI programs, and willlead to recommendations on how to improve themanagement of the program. PCAST’s review ofthe Federal nanotechnology research program isan ongoing, long-term activity.

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National Nanotechnology Initiative

coated surfaces

Funding StrategyThe NNI funding strategy is based on five modesof investment, each of which builds on previousand current nanotechnology programs.

The first investment mode supports a balancedinvestment in fundamental research across theentire breadth of science and engineering. Suchfundamental research advances knowledge andunderstanding of novel physical, chemical, andbiological properties of nanoscale materials andsystems. This broad investment is critical becausethe outcome of basic research cannot always beanticipated, and discoveries in one discipline canhave unexpected implications in another.

The second investment mode, collectivelyknown as the “grand challenges,” focuses on ninespecific R&D areas that are more directly relatedto applications of nanotechnology and that havebeen identified as having the potential to realizesignificant economic, governmental, and societalimpact.

The nine grand challenge areas are:

1. Nanostructured Materials by Design2. Manufacturing at the Nanoscale 3. Chemical-Biological-Radiological-Explosive

Detection and Protection4. Nanoscale Instrumentation and Metrology 5. Nano-Electronics, -Photonics, and

-Magnetics 6. Healthcare, Therapeutics, and Diagnostics 7. Efficient Energy Conversion and Storage8. Microcraft and Robotics9. Nanoscale Processes for Environmental

Improvement

Research directed toward the grand challengeareas aims to efficiently and effectively acceleratethe transition of scientific discovery intoinnovative technologies that show a return oninvestment as quickly as possible.

The third mode of investment supports centersof excellence that conduct research within the hostinstitution(s). These centers pursue projects withbroad multidisciplinary research goals that are notsupported by more traditionally structured

programs. These centers also promote educationof future researchers and innovators, as well astraining of a skilled technical workforce for thegrowing nanotechnology industry.

The fourth investment mode funds the devel-opment of infrastructure (e.g., the DOE userfacility shown in Figure 2), instrumentation,standards, computational capabilities, and otherresearch tools necessary for nanoscale R&D. Thecenters and infrastructure developed under thethird and fourth modes facilitate the basic andapplied research supported under the first twomodes.

The fifth and final investment mode recognizesand funds research on the societal implications ofnanotechnology, and addresses educational needsassociated with the successful development ofnanoscience and nanotechnology.

The FY 2004 Funding RequestAs part of the FY 2004 Budget, President Bushrequested $849 million for nanotechnology R&Dacross all of the agencies that participate in theNNI. This represents an increase of approxi-mately 10% over the amount appropriated byCongress for FY 2003. Roughly two-thirds of thefunding proposed under the NNI will supportuniversity-based research. Table 1 presents thenanotechnology R&D budget for FY 2002through FY 2004 by agency.

Figure 2. Conceptualization of the Center for FunctionalNanomaterials, to be co-located with the National SynchrotronLight Source at the Department of Energy’s Brookhaven NationalLaboratory.

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National Nanotechnology Initiative

Agency Abbreviations Used throughout this Report

DHS Department of Homeland Security IA Intelligence AgenciesDOC Department of Commerce NASA National Aeronautics and Space AdministrationDOD Department of Defense NIH National Institutes of HealthDOE Department of Energy NIST National Institute of Standards and TechnologyDOJ Department of Justice NSF National Science FoundationDOT Department of Transportation TSA Transportation Security AdministrationEPA Environmental Protection Agency USDA Department of AgricultureHHS Health and Human Services

Table 1. FY 2004 NNI Budget Overview by Agency(Budget Authority, dollars in millions)

% Change,2003 to 2004†Agency

2002Actual

2003Request

2003Appropriated*

2004Request**

Change,2003 to 2004†

NSF 204 221 221 249 28 13%

DOD 224 243 243 222 -21 -8%

DOE 89 133 133 197 64 48%

HHS (NIH) 59 65 65 70 5 8%

DOC (NIST) 77 69 66 62 -4 -6%

NASA 35 33 33 31 -2 -6%

USDA 0 1 1 10 9 900%

EPA 6 6 5 5 0 0%

DHS (TSA)# 2 2 2 2 0 0%

DOJ 1 1 1 1 0 0%

TOTAL 697 774 770 849 79 10%

*“2003 Appropriated” refers to planned outlays with appropriated dollars; actual FY 2003 outlays may vary.

**The total NNI request for FY 2004, as originally published in the President’s FY 2004 Budget, was$792 million (see http://www.whitehouse.gov/omb/budget/fy2004/pdf/spec.pdf, p. 185). By the FebruaryBudget release, some agencies had identified additional items within their FY 2004 R&D budget requestsas falling under the purview of the NNI. These updated figures are reflected in this table (see alsohttp://www.ostp.gov/html/budget/2004/2004.html).† Change between 2003 Appropriated and 2004 Request.# The NNI programs that are currently under DHS were under DOT prior to the formation of DHS in 2002.

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National Nanotechnology Initiative