Nanotechnology involves working at the levels of atoms and molecules. At nanoscale, properties of materials can change from what they are in normal state. Neutral materials can exhibit toxicity at nano scale, for example.
Nanomaterials and the technology can also affect environment, and raise social and ethical issues. Regulatory oversignt is needed to ensure that the technology is handled responsibly. The problem is that regulators typically do not know what to regulate in this new field.
Regulations can often hinder the development of the technology and industry. In a recent example, a “diabetes phone” that used biotechnology developments to help patients to check their blood-sugar levels, and then use information technology developments to seek remote treatment from doctors, could not be successfully marketed in Korea as local medical regulations did not allow remote treatment.
Business funding practices might also not be helpful for development of industry using such innovative and unproven technologies. A study in India found that funding stopped at academic research stage. Bureaucratic procedures involved in releasing government funding discourages entrepreneurs in such new technologies.
Developing countries also face the problem of inadequate venture capital availability to fund enterprises in new technologies. Typically, entrepreneurs have to depend on private funding.
Knowledge transfer from academia to manufacturing industry is also not well-developed in these new technologies.
Read about a study conducted in India on nanotech industry development problems in a dnaindia report.
