NEW MEXICO HAS THE RIGHT STUFF FOR A FUTURE IN THE TINIEST TECHNOLOGY

New Mexico has a big lead in the small-tech race, according to a recent report that ranked it No. 5 for nanotechnology economic development.

The report, "Benchmarking U.S. States for Economic Development from Nanotechnology," was released last week by Lux Research, a New York nanotechnology consulting firm. It explored various infrastructures in each state, such as universities, government spending and venture capital availability, that could support what some believe will be the next U.S. technology wave, as biotech was in the '80s and '90s.

Among New Mexico's assets named by the report were two major national labs with a shared "outside-the-fence" nanotech facility between them, understanding and support from state and congressional leadership, and university cooperation.

But its historic failure to retain startups, a thin concentration of startup companies and a dearth of investors could hobble efforts to capitalize on emerging commercialization of materials made by manipulating atoms and molecules.

"Our point was not to get caught up in states that were suddenly spending on nanotech and expected it to be the messiah for other economic sins," said Mark Modzelewski, managing director of Lux Research. "The point was to look at was the state prepared and capable to take the research and the investments and the findings and capitalize on them."

The top five included Massachusetts at No. 1, followed by California, Colorado, Virginia and New Mexico. Texas appeared at No. 14, while Arizona was ranked No. 16.

Nanotechnology essentially means the ability to build things one molecular layer at a time, resulting in new materials for telecommunications, semiconductors and textiles, among other things. Some believe it will be at the forefront of a resurgence of manufacturing in this country.

"You've got China, all these low-cost nations, building cars, phones and washing machines, and they're doing this all with current technology and current manufacturing processes," says Michael Orshan, director of the New Mexico Economic Development Department's Office of Science and Technology.

"Nanotech and microsystems are going to totally revolutionize engines, the skins of cars and aircraft, electronics and household products," Orshan said. "America has another shot at developing the manufacturing for the next generation of products. We can recapture our position."

The state boasts a handful of nanotech-related companies, including Zia Laser, a firm that uses nanotechnology processes to make tiny lasers for the telecommunications industry; Cabot Superior Micropowders, which makes coatings and other materials, and TPL, which makes nano-powders used in the electronics industry.

In addition, both Sandia and Los Alamos National Laboratories are engaged in nanotechnology research, some of which will eventually transition to the $76 million Center for Integrated Nanotechnology, a joint project of both labs to be completed in Albuquerque in 2006.

"I would love to see New Mexico become the state that applied nanotechnology and actually did something with it," said Tom Brennan, who founded and sold Micro Optical Devices and later led Zia Laser.

State and local governments around the country put more than $400 million into nanotech research in hopes of attracting a piece of the nearly $1 billion in federal funding for such projects, according to the report. It did not break down those figures by state.

There also is an effort under way by economic developers, industry officials and other interested parties to create a group to promote nanotechnology.

CAPTION(S):

PHOTOS BY:COURTESY SANDIA NATIONAL LABORATORIES

PHOTOS: b/w

Sandia National Laboratories researchers are studying the controlled growth of nanostructed crystals. Pictured, from top left, are (a) nacre in red abalone, (b) synthetic ZnO crystals, and (c) a diatom. The other images are synthetic silica crystals.

PHOTO BY:COURTESY SANDIA NATIONAL LABORATORIES

PHOTO: b/w

Each link in this chain is so small it could sit comfortably atop a human hair. New Mexico is considered a nanotechnology leader, thanks in part to work at Sandia and Los Alamos national laboratories. This nanochain was made at Sandia Labs.

NANO BIG-TIME.(Business Outlook)

Publication: Albuquerque Journal (Albuquerque, NM)

Publication Date: 31-JAN-05

byline: Andrew Webb Journal Staff Writer