Nanotechnology research and development funding almost doubled to more than $10 billion in 2004 from the previous year. Most of the increase was driven by a big jump in corporate and private funding, which grew by 160 percent, while government and academic research outlays on nanotech R&D increased by a vigorous, but less outstanding, 37 percent. Japan led the way, with expenditures approaching $4 billion; the United States, however, was not far behind, with spending of about $3.4 billion.

The expected payoff for all this investment could be huge, even over the next few years. Nanotech was already a $10 billion market last year, and that is expected to triple by 2008. Much of that growth will result from new nanomaterials. By 2008, more than $100 billion in products will likely involve some type of nanotechnology.