Outsourcing Nanotechnology: The Next Big Thing?

By Walter Derzko

The EU, the USA and Canada are all talking about bring in voluntary nanotechnology regulations in 2008 and 2009, where manufacturers that fabricate nanomaterials or use them at the intermediate stage or final end product stage would voluntarily submit toxicity and safety studies to the health, food or environment ministries in each respected country. 

According to Industry Canada, Canada currently has 80 companies that produce 150 products that include 88 distinct nanomaterials (data from a Nanotechnology policy session I attended earlier in February). Worldwide, the Wilson Centers’ Nanotechnology Consumers Products Inventory currently has about 580 products made by 305 companies in 20 countries in its database.

In the mad scramble to complete their toxicity studies, many start-up nanotechnology firms who have an open source Research&Design philosophy, will look overseas to save money and to help them with their research and safety studies on nanomaterials.

Just as India is known for its offshore IT and call centre work, Ukraine could become the country of choice for nanotechnology outsourcing. Already, one famous racing car company has outsourced some of its R&D work on the next-generation batteries or super capacitors to a Ukrainian nanotechnology start-up company. Ukraine has as many universities and institutes in nanotechnology research and development as Canada, but you can contract out development work for a fraction of what it costs in the West. There is even a little-known Canadian government program that will match private funds, dollar for dollar, if a Canadian Subject Matter Expert (SME) or larger company hires a Ukrainian scientist in Ukraine to outsource its R&D on a project basis to a Ukrainian university or institute. This was done after the break-up of the Soviet Union, to support former military scientists, who worked on secret military projects such as weapons-of-mass-destruction, to convert their research activities into peaceful, civilian purposes. The USA, I believe, still has a similar program in place.

Most of the nanotechnology research in Ukraine was secret military work under the former Soviet Union, however, Ukraine still retains most of that world class expertise today.  The best deal in town, especially for SME’s who are tight on start-up business capital.

To read more, visit http://smarteconomy.typepad.com/smart_economy/2008/02/outsourcing-and.html

Wolodymyr Derzko teaches in the Innovation and Entrepreneurship Certificate Program at U of T School of Continuing Studies. He will deliver a talk on “Commercialising New Technology - Canadian Approach” during the session on Partnering and Commercialising with Ukrainian High Technology Capabilities at the upcoming Canada Ukraine Business  Summit, March 11-14, 2008 in Dnipropetrovsk and Kyiv, Ukraine.

Canada Ukraine Business Summit

 NP - The first ever Canada – Ukraine Business Summit, organized by Canada’s Department of Foreign Affairs and International Trade, the Science and Technology Centre in Ukraine and selected partners, brings together leading Canadian and Ukrainian businesses and representatives for the largest bilateral commercial event ever held. It is designed to help assist Canadian companies identify new trade, technology and investment opportunities.

In her invitation to the Summit, Abina Dann, Canadian Ambassador to Ukraine, states “Ukraine’s economy is booming with GDP growth of 8%, consumer spending at 15%, WTO accession, a strong science and technology base, pro-democratic developments and EU proximity.  All of this means that now is the time for Canadian companies to focus on Ukraine as the next emerging market in Eastern Europe.” 

“The Summit is structured to provide companies with an opportunity to hear and meet senior business representatives from Canada and Ukraine, the European Bank for Reconstruction and Development, World Bank, the Science and Technology Centre of Ukraine, Export Development Canada, Invest Ukraine, and leading Ukrainian research institutes on the latest developments, opportunities and support available to help support bilateral business development” said Ambassador Dann.  

This event’s unique focus showcases Canadian capabilities in energy and environment, high technology and aerospace, agricultural and construction as well as Ukraine’s extensive technology and research and development capabilities in these sectors.  The Summit is held in the hub of Ukraine’s industrial region, Dnipropetrovsk, in the business facilities of Agro-Soyuz, Ukraine’s most advanced agro-industrial complex and at the Yuzhney Rocket Design Bureau. A wrap-up plenary session with senior Ukrainian government and business officials and further networking will be in Kyiv.