1. vijit.sunder@gmail.com
UNIVERSITY OF WATERLOO
Faculty of Science
INDUSTRY ANALYSIS
Prepared by
Vijit Sunder
ID 20268200
3B Science and Business
December 9, 2011

2. vijit.sunder@gmail.com
EXECUTIVE
SUMMARY
With
the
recent
advances
in
nanotechnology,
a
promising
opportunity
has
emerged
with
the
development
of
nanotechnology-­‐enabled
applications
that
can
provide
solutions
to
the
critical
development
problems
experienced
by
the
poor
in
developing
nations.
The
list
below
lists
three
of
the
nanotechnology
applications
that
can
benefit
developing
nations
based
on
the
development
(social
and
environmental)
needs
of
these
countries.
• Water
treatment
and
remediation
• Agricultural
productivity
enhancement
• Health
Care
(e.g.
disease
diagnosing)
Despite
its
promising
potential,
the
development
and
implementation
of
nanotechnology-­‐enabled
applications
in
developing
countries
face
three
key
challenges
that
impede
its
progress.
The
three
challenges
are
garnering
support
for
research
and
development
investment,
minimizing
nanotechnology
costs
and
improving
market
acceptance.
In
this
report,
the
causes
for
these
challenges
will
be
identified
and
a
strategy
for
addressing
each
of
the
three
challenges
will
be
explained.

3. vijit.sunder@gmail.com
STATEMENT
OF
PROBLEM
How
to
overcome
the
challenges
that
impede
the
progress
of
nanotechnology
enabled
applications
targeted
to
address
critical
development
problems
experienced
by
the
poor
in
developing
countries?
I
realize
that
addressing
this
critical
question
is
important
to
you
as
a
decision
maker
and
for
the
livelihood
of
many
around
the
world.
I
have
thus
carefully
examined
the
causes
of
the
problem
and
based
on
my
analysis,
I
have
determined
three
key
challenges
you
must
focus
on
in
order
to
make
your
decision.
The
three
challenges
are
garnering
support
for
research
and
development
investment,
minimizing
nanotechnology
costs
and
improving
market
acceptance.
For
each
of
the
three
challenges,
I
will
pinpoint
the
causes
that
created
that
challenge.
Lastly,
for
each
challenge,
I
will
provide
you
with
a
strategy
that
will
guide
you
in
overcoming
the
challenges
that
impede
nanotechnology
progress
in
this
area.
ANALYSIS
OF
CHALLENGES
First
Challenge:
The
first
challenge
is
garnering
public
support
for
research
and
development
investment
for
the
poor.
The
reason
is
nanotechnology
is
a
long-­‐term
investment
and
it
is
expensive,
potentially
risky,
the
research
is
uncertain
and
thus
the
return
on
investment
is
also
uncertain
(Gruère,
2011).
In
developing
countries,
there
is
an
added
difficulty
for
the
private
sector
to
invest
in
nanotechnology
R&D
because
infrastructure,
government
funding,
trained
human
resources,
capital
and
sufficient
economic
incentives
are
lacking
(Alo).
Lastly,
developing
countries
have
limited
say
and
decision
on
the
economic
outcome
of
R&D
investments
because
the
industry
is
dominated
by
multinationals
(Gruèr,
2011).
In
the
perspective
of
multinationals;
investing
in
the
small,
developing
country
markets
may
be
seen
as
unprofitable
and
thus
resources
will
not
be
directed
in
addressing
the
needs
of
this
market
(Gruère,
2011).

4. vijit.sunder@gmail.com
Your
first
challenge
is
“How
do
I
garner
the
support
needed
for
investing
in
research
and
development
for
the
poor?”
Second
Challenge:
Through
the
use
of
patents,
intellectual
property
rights
protect
innovations
in
nanotechnology.
However,
this
has
also
created
barriers
to
entry
and
has
raised
the
cost
for
acquiring
applications.
Nanotechnology-­‐leading
developed
countries
own
the
majority
of
patents.
If
future
patents
continue
to
be
owned
by
these
nations,
it
will
continue
to
block
small
developing
countries
in
accessing
promising
technology
they
can
use
because
of
high
costs
(Gruère,
2011).
Your
second
challenge
is
“How
do
I
minimize
costs
and
increase
access?”
Third
Challenge:
The
uncertainty
of
nanotechnology
research
comes
from
the
potential
health
and
environmental
risks.
Concerns
include
nanoparticle
toxicity
and
bioaccumulation.
For
developing
countries,
it
was
noted
there
was
an
excessive
focus
on
the
risks
of
the
technology.
This
negative
outlook
can
discourage
these
countries
from
investing
and
adopting
potentially
important
nanotechnology
applications
(Gruère,
2011).
This
negative
outlook
in
these
nations
can
be
attributed
to
lack
of
educational
programs,
communication
and
sharing
of
scientific
knowledge
(Alo).
Your
last
challenge
is
“How
do
I
improve
market
acceptance
for
this
technology?”

5. vijit.sunder@gmail.com
STRATEGIES
Strategy
for
Challenge
1
Engaging
the
international
scientific
community
is
your
first
priority.
Thankfully,
there
are
individuals
that
share
your
goal
in
addressing
this
problem.
I
strongly
suggest
contacting
the
following
individual
Peter
Singer
(peter.singer@utoronto.ca).
Singer
is
a
researcher
at
the
University
of
Toronto.
Singer
and
his
colleagues
have
proposed
an
initiative
called
“Addressing
Global
Challenges
Using
Nanotechnology”.
This
initiative
is
a
Global
Fund
that
proposes
that
funding
can
come
from
national
and
international
foundations
and
collaboration
among
nanotechnology
initiatives
in
industrialized
and
developing
countries
(Salamanca et al, 2005).
The
goal
of
this
initiative
is
to
accelerate
nanotechnology
progress
in
helping
address
critical
development
problems
and
guiding
developing
countries
with
their
own
nanotechnology
initiatives
(Salamanca et al, 2005).
For
further
details
of
this
initiative,
please
read
the
paper
“Nanotechnology
and
the
Developing
World”
published
by
Singer
and
his
colleagues.
This
paper
and
contacting
Singer
to
get
in
touch
with
people
that
share
your
goal
in
addressing
this
problem
will
be
the
first
step
to
address
this
challenge.
Strategy
for
Challenge
2
To
allow
access
to
the
needed
technologies,
you
will
need
to
negotiate
with
the
organizations
with
the
patents
that
can
benefit
the
poor.
Start
to
develop
strong
industry,
academic
and
government
contacts
that
share
your
goal
in
addressing
this
challenge.
These
contacts
will
provide
you
with
negotiating
power.
For
minimizing
the
costs
of
patents,
I
recommend
the
following
two
negotiation
options.
1. Licensing
agreement

6. vijit.sunder@gmail.com
2. Negotiate
transfer
of
organization’s
technologies
to
developing
countries
through
the
agreement
of
a
trade
secret
protection
(Gruère,
2011).
Strategy
for
Challenge
3
Communication
is
the
cause
of
this
challenge
and
communication
will
be
the
solution
to
this
challenge.
You
must
collaborate
with
the
academic
community,
government
and
the
industry
in
the
developing
countries
to
develop
and
promote
educational
materials
and
improve
communication
and
sharing
of
scientific
information
among
the
public,
academic
community,
government
and
industry.
Market
acceptance
of
nanotechnology
in
addressing
the
country’s
critical
needs
comes
from
education
and
open/honest
communication.
Providing
facts
about
both
the
benefits
and
risks
of
nanotechnology
is
needed
so
that
the
market
can
effectively
analyze
and
make
its
decision
on
its
nanotechnology
initiatives.
CLOSING
REMARKS
Once
again,
I
appreciate
that
addressing
this
problem
is
an
important
decision
for
you
and
I
am
confident
that
this
report
will
assist
you
when
it
comes
time
to
make
your
decision.

7. vijit.sunder@gmail.com
REFERENCES
Alo,
B.
(n.d.).
Nanotechnology
in
a
developing
world
-­‐
applications
and
challenges.
Retrieved
from
http://www.who.int/ifcs/documents/forums/forum6/ppt_nano_alo.pdf
Gruère,
G.,
Narrod,
C.,
&
Abbott,
L.
(2011,
June).
Agriculture,
food,
and
water
nanotechnologies
for
the
poor.
Retrieved
from
http://www.ifpri.org/sites/default/files/publications/bp019.pdf
Salamanca-­‐Buentello
F,
Persad
DL,
Court
EB,
Martin
DK,
Daar
AS,
et
al.
(2005)
Nanotechnology
and
the
Developing
World.
Retrieved
from
http://www.plosmedicine.org/article/info%3Adoi%2F10.1371%2Fjournal.
pmed.0020097#pmed-­‐0020097-­‐t001