OECD/NNI International Symposium on Assessing the Economic Impact of Nanotechnology Background Paper 4 - Models, Tools and Metrics Available to Assess the Economic Impact of nanotechnology

1. Executive summary

1. Research and development, funded by both public and private investment, has a large role to play in the growth of the economy. Technology-based economic development strategies have become an increasing priority, with nanotechnology as one area of policy importance. The ability to evaluate the economic impacts of nanotechnology initiatives and investment is also becoming an increasingly essential part of the creation of optimum investment strategies.

2. Due to the relative infancy of nano-enabled technology there are few valuation models that are specifically focused on this technology area, and there is a clear lack of any definitive model. This report focuses on two main methodologies; (1) the Defra model based on performing a comparative valuation of a nano-enabled product against an incumbent product, and (2) the STAR METRICS database approach which utilises an Input/output (I/O) approach to perform an inter-industry analysis, attempting to develop an understanding of the outputs achieved by Federal funding in the Science and Technology sector. Both models have their merits, and both require assumptions to be made.

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