Updated September 20, 2000

Introduction

Dr. Neal Lane, the President's science advisor, has said that, "If I were asked for an area of science and engineering that will most likely produce the breakthroughs of tomorrow I would point to nanoscience and engineering."1 The Administration FY2001 research and development (R&D) budget includes a $495 million request for the National Nanotechnology Initiative (NNI), an 83% increase over the FY2000 appropriated level of $270 million. Nanotechnology is the creation and utilization of materials, devices, and systems with novel properties and functions through the control of matter atom by atom, or molecule by molecule. Such control takes place on a scale of a fraction of a nanometer to tens of nanometers. Ten nanometers is equal to one thousandths the diameter of a human hair.

Academic and industry scientists working in this field contend that research in nanoscience will lead to revolutionary breakthroughs in such areas as medicine, manufacturing, materials, construction, computing, and telecommunications. For example, breakthroughs in nanotechnology (or nanoscience as some researcher refer to it) could lead to molecules replacing silicon on computer chips which could result in computers that are billions of times faster than today's most sophisticated computers. Researchers are also studying ways to treat neurological disorders by developing silicon capsules that include a nanopore screening membranes (18-25 nanometers wide) that allow the desired molecules to flow in and out while blocking the patient's antibodies from attacking the treated area. While both private sector and federally sponsored research in nanoscience has led encouraging breakthroughs in the last couple of years, nanotechnology is still in its infancy. Most scientists contend that practical applications of this newly emerging science, such as the ones described above, could be 10 to 20 years away.

Nanotechnology and the Federal Role

All natural materials and systems establish their fundamental properties at the atomic and molecular scale. Consequently, the ability to control matter at those levels provides the means for tailoring the fundamental properties, phenomena, and processes exactly at the scale where the basic properties are determined. However, scientists are only beginning to understand how to do this. In response to this challenge the Interagency Working Group on Nano Science, Engineering, and Technology (IWGN) of the National Science and Technology Council (NSTC), in the White House, wrote a report entitled Nanotechnology Research Directions, which serves as the footprint for future federal R&D efforts.2 Utilizing the views of experts from government, academia, and industry the report recommends the creation of the NNI in order to focus on three over-arching initiatives: I ) developing a balanced research and development infrastructure; 2) advancing critical research areas; and 3) nurturing the scientific and technical workforce of the next century.

The President's FY2001 request of $498 million incorporates most of the recommendations contained in the IWGN report. The Administration's request also builds on past and current nanotechnology initiatives across all scientific disciplines including engineering, math, physical sciences, and the biological sciences. The NNI is built around five funding themes distributed among six agencies. The agencies include the National Science Foundation (NSF), the Department of Defense (DOD), the Department of Energy (DOE), The National Institutes of Health (NIH), the National Aeronautics and Space Administration (NASA), and The National Institute of Standards and Technology (NIST), within the Department of Commerce.

The table below contains estimated funding levels based on the actions of various House and Senate appropriations committees. Senate appropriators have recommended cutting NSF's requested increase $92 million, while House appropriators reduced the requested increase $21 million. Conversely, House appropriations actions recommended reducing DOE'S request by $40 million, while Senate DOE appropriators recommended a $20 million reduction in the requested amount. A brief summary of the five funding themes for the NNI follows.

1. Long Term Fundamental Research-The first theme focuses on long term fundamental research totaling $170 million of which $ 122 million would be spent by NSF. Because nanoscience is in its infancy, only rudimentary nanostructures can be created with some control. Long term basic nanoscience and engineering research will focus on fundamental understanding and synthesis of nanometer-size building blocks with potential breakthroughs in areas such as materials and manufacturing, nanoelectronics, medicine and healthcare, environment and energy, chemical and pharmaceuticals industries, biotechnology and agriculture, computation and information technology, and national security. One of the fundamental challenges facing researchers is to try and control and manipulate matter at the ultimate frontier where for example as you move from I to 100 nanometers, the texture of atomic and molecular matter can suddenly change from soft, to hard, to brittle, and back to soft again without explanation.

Table 1. Estimated Funding for Nanotechnology
Based on Current Appropriations Actions
$ millions

2. Grand Challenges- The second theme includes support ($140 million) for interdisciplinary research and education teams, including centers and networks, that work on major long-term objectives. DOD and DOE are the two lead agencies for this effort. The Administration has identified a number of grand challenges that are essential for the advancement of this field. They include advancements in nanostructure materials so that it is possible to design and manufacture structures that are correct at the atomic and single molecule level. The cost of a single fabrication plant for 70 nanometer microelectronics is estimated at over $10 billion. Consequently it is necessary to identify synthesis, processing, and manufacturing approaches that are commercially affordable at the nanostructure level. In the area of efficient energy conservation and storage one of the challenges is to understand how deliberate tailoring of materials at the nanoscale can lead to novel and enhanced functionalities of relevance in energy conversion, storage and conservation. Bio-nanosensor devices for biological threat detection is another nanotechnology that could foster efficient and rapid biochemical detection and mitigation in situ for chemical- biowarfare, as well as medical concerns such as HIV and tuberculosis.

3. Establishing Centers and Networks of Excellence-The third theme is centered around the establishment of 10 Centers and Networks of Excellence ($80 million) at about $3 million a year, for about 5 years, with an opportunity of a one time renewal after progress reviews. The Administration envisions the establishment of nanoscience and technology research centers, similar to the supercomputer centers, that will play a key role in achieving NNI top priorities (fundamental research, grand challenges, educating future scientists and engineers) as well as development and utilization of specific tools and in promoting research partnerships. The Administration anticipates that the establishment of centers and networks will spawn the integration of research and education in nanoscience and technology across disciplines and among various research sectors including universities, federal laboratories, and the private sector. It anticipates that multidisciplinary research activities among government, universities and industry performers will create a vertical integration arrangement that includes activities from basic research to the actual development of specific nanotechnology devices and applications.

4. The Creation of Research Infrastructure- The fourth theme supports ($80 million) the creation of a research infrastructure for metrology, instrumentation, modeling and simulation, and facilities. The ultimate objective is the development of research instrumentation and facilities so that new innovations can be rapidly commercialized by U.S. industry. While IBM researchers won the Nobel Prize for the invention of the Scanning Tunneling Microscope (STM) that enables researchers to push around one molecule or atom at a time, using STM for building nanodevices is not practical. According to the Administration, if the need for instrumentation and the ability to transition from knowledge-driven to product-driven efforts are not addressed satisfactorily, the United States will not remain internationally competitive in this field.

5. Societal and Educational Implications- The Societal Implications of Nanotechnology and Workforce Education and Training ($28 million) comprises the fifth theme of the NNI. In concert with the initiative's university based research activities, this effort is designed to provide effective education and training of skilled workers in the multidisciplinary perspective necessary for rapid progress in nanotechnology. Researchers will also examine the potential social, economic, ethical, legal, and workforce implications of nanotechnology. The Administration contends that when radically new technologies emerge, important social, legal, environmental, and workforce issues arise. Such issues will require specific research activities and measures to take advantage of opportunities or reduce potential risks.

Congressional Issues

Why such a large increase? The Administration has acknowledge that many of the NNI's research objectives could take up to 20 years to be achieved. Consequently, some have questioned the justification for a proposed 83% ($228 million) increase in funding for this initiative. The IWGN, formed in 1998, had recommended consistent federal increases, over the next decade, for a variety research initiatives, in nanosicence and nanotechnology. However, a study of international nanotechnology research efforts, sponsored by the NSTC, suggest that the United States risks falling behind its international competitors including Japan, Taiwan, South Korea, and Europe if it fails to sustain broad based funding in nanotechnology.3 Administration and industry officials contend that the proposed NNI investment is also needed to help ensure the education of future scientists and engineers that are prepared to work in this emerging field of science. The NSTC points out that two-thirds of the FY2001 NNI budget will focus on long-term high risk fundamental research distributed across all scientific disciplines.

At a May 4" appropriations hearing, Senator Bond, Chairman of the VA/HUD and Independent Agencies Subcommittee of Senate Appropriations, expressed skepticism about this multi- agency initiative, including the rationale for a proposed 123% increase in NSF's nanotechnology program. Senator Bond indicated he had concerns about whether NSF would be able to handle such a rapid infusion of money if the proposed increase was approved. According to N SF, its Nanoscale Science and Engineering group has already prepared a coordinated response in case the increase is approved by Congress.

While nanotechnology may hold great promise, some scientists contend that the field's definition is too vague and that much of its "hype" may not match the reality of present scientific speculation. In a recent article, two scientists noted that while it is possible to demonstrate limited molecular electronic circuits, "scientists must find a way to secure many millions, if not billions, of molecular devices of various types against some kind of immobile surface and to link them in any manner and into whatever patterns our circuit diagram dictates."4 They contend the technology is to immature to say when or whether such challenges can be overcome.

How effective is interagency coordination? The Administration is expected to designate a National Coordinating Office for the NNI. NSF is expected to provide the intellectual leadership for this office. According to NSTC documents, this means that NSF would be responsible for working with the other five agencies to ensure that a coherent strategy for funding the critical areas of nanoscience and engineering is implemented across all of the agencies involved in the initiative. However, some in Congress have questioned NSF's capability of leading such an effort given its limited personnel resources,5 and the limited NSTC's capabilities for oversight of such initiatives. Some Members also are concerned that this new research endeavor is likely to lead to duplication of effort by government agencies.

A recent General Accounting Office (GAO) report noted that achieving results on public problems increasingly calls for effective interagency coordination.6 However, the report indicates that agencies encounter a range of barriers when they attempt such coordination. One barrier is that agencies that do not share like missions often find it difficult to reach consensus on programmatic strategies and priorities. Another barrier to interagency coordination is agencies' concerns about protecting jurisdiction over mission and control over resources. However, OSTP personnel are currently reviewing an NNI proposed implementation plan they believe should help to ensure that a "coherent approach will be developed for funding the critical areas of nanoscience and engineering, establishing a balanced and flexible infrastructure, educating and training the necessary workforce, and promoting research partnerships."7 According to NSF representatives, the IWGN reached a broad based agreement on the fundamental goals of the NNI and how they should be implemented among the six agencies. It's not clear if this agreement addresses GAO's concerns.

What is the proper federal role? As with many recent federal research initiatives that have potential broad-based commercial applications, there is a legitimate debate regarding the appropriate role the federal government should play in ensuring that nanotechnology fulfill its long-term potential broad-based commercial applications. Given the variety of advertised commercial applications of nanotechnoloy, there are concerns that the proposed federal investments could be duplicating industry R&D efforts.

Recognizing that the private sector is now investing heavily in nanotechnologies, OSTP convened a panel of private sector research executives to review the Administration's FY2001 NNI. According to R. Stanley Williams, from Hewlett-Packard, the panel not only reviewed the Administration's proposed nanotechnology initiative, but also wrestled with the question of what role the federal government should play in this emerging field of science.8 The panel noted that commercial applications of nanotechnology could be decades away, therefore, they contend that industry must rely on the federal government to fund the bulk of long-term high-risk university based research that will produce the necessary knowledge base necessary to develop practical nanotechnology applications. This would also include educating future scientists and engineers that will be needed to conduct research and apply the knowledge gained to commercial applications.

While industry panel members do not believe duplication of research activities is a concern at this time, some members believe that OSTP may want to establish a permanent industry review panel to ensure the role of government and industry in researching and commercializing nanotechnologies remains clearly delineated.

Footnotes

1 NNI: Leading to the Next Industrial Revolution. Supplement to the President's FY2001 Budget. NSTC, March 2000. p. 12

2 Nanotechnology Research Directions: IWGN Workshop Report, Vision for Nanotechnology Research and Development in the Next Decade. Edited by M.C. Roco S. Williams, and P. Alivisatos. NSTC, Sept. 1999.

4 Computing with Molecules, Mark A. Reed and James M. Tour, Scientific America, June 2000. p. 87-88.

5 At a May 4, 2000, hearing Senator Bond, Chairman of the VA/HUD and Independent Agencies Appropriations Subcommittee, noted that NSF's budget had grown nearly 40% in real terms since the early 1990s, while agency staffing levels have remained flat.

6 United States General Accounting Office. Managing for Results, Barriers to Interagency Cooperation, March 2000, GAO/GGD-00-106. p. 1-4.

7 NNI: Leading to the Next Industrial Revolution. The Initiative and its Implementation Plan. Supplement to the President's FY2001 Budget. NSTC, March 2000. p. 14

8 Nanotechnology, the Study of Minute Matter, Becomes a Big Priority in the Budget. Ron Southwick, Chronicle of Higher Education, March 31, 2000. p. A3 9.