676 Micro- and Nanomanufacturing
nanotechnology R&D has boosted confidence but it will take some
time for this funding to filter down and benefit the manufacturing
industry. The support for nanotechnology has distorted the develop-
ment process as most companies still require further funded devel-
opment for microdevices and systems. They see nanotechnology
products as being too far in the future. The initial rush of investors
has been curtailed by the long-term reality.
Nanotechnology, like its larger scale microtechnology, is disrup-
tive.
It is unstructured with uncertain technological outcomes mak-
ing commercialization difficult to quantify and justify financially.
However, although MNT products can be technologically revolu-
tionary in nature, commercialization of them is usually incremental.
This at least makes incorporating it into an existing business regime
less risky. The rate of incorporation is governed by market demand.
It is sometimes easy to identify a market but not to enter it.
Customers do not like change, particularly where legislation and
regulation issues are involved which is the reason the medical mar-
ket has been cautious and slow to react. The opposite situation can
occur, however, as in the optical communications market where
technological innovation exceeded market demand resulting in over
capacity of supply and many companies becoming financially over
committed and failing. It produced a knock-on effect resulting in
massive decline in the industry, which adversely affected many large
and small companies. This taught the industry a hard lesson that
will make the next product push move more slowly. It will be in the
health care diagnostic market where regulation and public accep-
tance will dictate the pace of market growth.
The acceptance level of MNT is different for companies of
dif-
ferent sizes. Small companies are more adaptable to change as their
management structure is able to make quicker decisions, sometimes
survival may depend on bringing a new product to market to fill a
niche. Large companies often have an infrastructure and a manage-
ment system in which a Board of Directors make decisions. This can
often produce a delay and even prevent new product innovation
from being implemented thus losing a competitive edge in the mar-
ket. The organization of a nation's commercial infrastructure and
the extent of the free market economy also determine market growth
in particular sectors. In countries where health care has a higher pri-