The Advantage of Nanotech in Israel
Nanotechnology, generally described as the ability to manufacture products using known materials that are reduced to the nanoscale (smaller than 100 nanometers in size – one nanometer = one billionth of a meter) exhibit properties significantly different (e.g., more catalytic and conductive, anti-microbial) than those made by traditional methods. Nanomaterials are literally creating a new periodic chart and hold the promise of untold economic opportunities in the future. This is also why some of the most influential business people today are looking for ways to participate in the nanotech revolution.
According to the world's leading nanotechnology research and advisory firm, Lux Research, “Israel's technology development strength puts it in the same nanotech league as the U.S. and Taiwan.” NTI believes that its partnership agreement with the Polymate Ltd. - INRC and a focus on nanotechnologies gives it a significant advantage in implementing its business model. Please see "Alliances" for description of Polymate Ltd. - INRC.
Across all industries today, nanotechnology is considered the next frontier of technology and product innovation. Emerging nanotechnology was incorporated into more than $30 billion worth of manufactured goods in 2005 – more than double the previous year. And, by 2014, an estimated $2.6 trillion in global manufactured goods will include nanotech or 15% of U.S. GDP. The CEO of corporate giant Oracle, Larry Ellison, stated clearly its future position in Israel, promising continued R&D investments in the country and reaffirming that Israel’s economic climate has improved in recent years due to “qualitative man power, accelerated entrepreneurship, declining taxes and more simplified regulations” (The Marker, Aug. 13, 2007). The growth of Israel’s technology sector can also be seen in the number of R&D positions per capita and early stage investments in high tech: A recent IBM study determined that Israel, Singapore and Ireland lead the world in the number of R&D positions per capita (Globes, Sept. 20, 2007). Investors are willing to assume higher risk in early stage investments in Israel’s high tech. 46% of high tech investments in Israel, during the first half of 2007 were directed at first round private placements, which is 35% more than the second half of 2006 and twice as high as the first half of 2006 (Globes, Oct. 3, 2007).
NTI’s business model includes other advantages which give it a competitive edge over other nanotechnology holding firms. Whereas most nanotech holding firms today spend millions of dollars on research and development, NTI’s strategy is to acquire only market-ready technologies from the Polymate Ltd. - INRC and other Israeli technology incubators. In addition, NTI’s partnership with the Polymate Ltd. - INRC brings it a highly skilled research, development and management staff, and one of the most recognized nanotech scientists in the world today, Prof. Oleg Figovsky, who is the founder of the Polymate Ltd. - INRC and NTI’s Director of R&D.