Centre for Technology Management

Challenges Facing New Firms Commercialising Nanomaterials

Maine, E. and Garnsey, E. Hunt, Rick Mitchell, Rob Phaal, David Probert

Centre for Technology Management, Institute for Manufacturing, Engineering Department, University of Cambridge, UK

Abstract

This paper examines the incentives and challenges facing the commercialization of advanced materials and, in particular, nanomaterials with reference to issues raised in the technology strategy and technology entrepreneurship literature.  We draw on longitudinal empirical data to show that smaller and newer firms are playing an increasing role in the commercialisation of advanced materials innovations.  However, new technology based firms face substantial barriers to commercialisation, including access to the complementary assets of large firms and institutions.  To illustrate these challenges, we examine a case study of a small firm commercializing carbon nanotubes.  Through use of an open systems model, we characterize their alliances and interactions in attempting to commercialise their products in several markets. This analysis illustrates the daunting challenges facing start-up firms as they attempt to commercialise advanced materials innovations. Among the most difficult challenges are the prioritization of development objectives and alliance building. Proposed policy recommendations focus on supporting the entrepreneurial process of matching technology resources and market opportunities.