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ENABLING TECHNOLOGIES ROADMAP STUDY FOR THE DEPARTMENT OF INNOVATION, INDUSTRY, SCIENCE & RESEARCH

December 2011

Enabling Technologies Roadmap Study

December 2011

TABLE OF CONTENTS
1.0 EXECUTIVE SUMMARY 1.1. Key Findings and Considerations 2.0 INTRODUCTION 3.0 KEY TRENDS AND DRIVERS 3.1. Globalisation 3.2. Energy and the Environment 3.3. Resource Efficiency and Waste Management 3.4. Ageing Population 3.5. Changing Consumer Needs 4.0 ENABLING TECHNOLOGIES SUMMARY TABLE 5.0 NANOTECHNOLOGY 5.1. Nanotechnology Global Market Overview 5.2. Nanotechnology Analysis 5.3. Drivers 5.4. Opportunities 5.5. Barriers 5.6. Risks 5.7. Disruptive Potential 5.8. Nanotools and Platforms 5.9. Manufactured Nanomaterials and Components 5.10. Nanodevices and Systems 1 3 6 9 9 9 10 10 11 12 15 16 19 22 23 26 30 32 33 37 47 54 55 57 58 59

6.0 BIOTECHNOLOGY 6.1. Biotechnology Global Market Overview 6.2. Drivers 6.3. Opportunities 6.4. Barriers

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6.5. Risks 6.6. Disruptive Potential 6.7. Emerging Biotechnology Techniques 6.8. Biotechnology Applications 7.0 SYNTHETIC BIOLOGY 7.1. Synthetic Biology Global Market Overview 7.2. Drivers 7.3. Opportunities 7.4. Barriers 7.5. Risks 7.6. Disruptive Potential 7.7. Synthetic Biology Applications 8.0 CONTRIBUTION TO ADDRESSING AUSTRALIAS MAJOR NATIONAL CHALLENGES 8.1. Mining Boom 8.2. Climate Change 8.3. Increasing Demand for Energy Efficiency and Renewable Energy Sources 8.4. Sustainable Use of Natural Resources 8.5. Ageing of the Population and Health 8.6. Food Security 8.7. Biosecurity 8.8. Global Competitiveness and Productivity of Australian Industry 8.9. National Defence and Security 8.10. Summary

60 61 62 69 93 94 96 97 98 101 106 107 118 118 121 124 132 134 144 148 149 154 159 165 165 166 166 167

9.0 INFLUENCES AFFECTING THE ADOPTION OF ENABLING TECHNOLOGIES 9.1. Challenges in the Uptake of Enabling Technologies in Australia 9.2. Market-pull Commercialisation 9.3. Absorptive Capacity 9.4. Government Support for Research and Enabling Technologies
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9.5. Convergence of Technologies 9.6. Collaboration between Research and Industry Sectors 9.7. Incremental, Radical and Transformational Innovation 9.8. Product Innovation versus Market Innovation 9.9. Knowledge of Enabling Technologies 9.10. 9.11. 9.12. Regulatory Environment Intellectual Property Rights Ethical Considerations

168 170 170 171 172 172 174 179 183 185

10.0 LIST OF ACRONYMS 11.0 REFERENCE LIST

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1.0 EXECUTIVE SUMMARY


In the next ten to twenty years, the bio- and nano- enabling technologies, converging with information technologies and cognitive science, will have a significant impact on society, industry and the consumer, both in Australia and globally. The enabling technologies of nanotechnology, biotechnology and synthetic biology, which is a form of advanced biotechnology, are the subject of this enabling technologies roadmap (ETRM) study. They have the potential to revolutionise science, health, energy, resources, the environment, consumer products and manufacturing processes. Many of the global challenges being faced could potentially be resolved through harnessing the outputs of these enabling technologies, and through successful translation and commercialisation of new products, services and systems. However, enabling technologies also raise specific challenges themselves which must be identified and addressed as these technologies become more readily available. The National Enabling Technology Strategy (NETS) was established in 2009 to provide a framework to support the responsible development of enabling technologies. Under the Strategy, an Expert Forum was established with the responsibility to undertake foresighting activities to identify ways in which the enabling technologies might contribute to addressing major global and national challenges, and support the development of appropriate policy and regulatory frameworks. This report, carried out under the auspices of the Expert Forum, outlines a roadmap that provides a view into the future of nanotechnologies, biotechnologies and synthetic biology, including areas of convergence, and provides readers with insights into the development of new applications that are informing future strategies, products, markets and investment opportunities. These three types of enabling technologies have been selected as they are considered fundamental to a wide range of research and development (R&D) across a wide number of areas. New applications arising from these enabling technologies are expected to emerge as a result of advancement in these areas. The technologies and their applications are described in terms of their development at horizon 1 (already being commercialised), horizon 2 (lab bench) and horizon 3 (blue sky), with an emphasis on horizon 2 and horizon 3 developments. The ETRM is supported by information and data on each of the enabling technology areas including drivers, opportunities, risks, barriers, challenges and their disruptive potential. Disruptive potential refers to impact of the new technologies on existing manufacturing
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processes, systems, industries and markets. The report then proceeds to discuss factors influencing the adoption of enabling technologies and their potential to address major national challenges. Nanotechnology, involves the manipulation of matter on the nanometer scale (1nm to 100nm). The ISO (TS27687/TS80004-2) defines nanotechnology as the application of scientific knowledge to manipulate and control matter in the nanoscale in order to make use of size- and structure-dependent properties and phenomena, as distinct from those associated with individual atoms or molecules or with bulk materials. It is a multidisciplinary field encompassing biology, chemistry, physics and engineering. Nanotechnology researchers are focusing on a range of issues to improve the performance, multi-functionality, integration, and sustainability of a range of nanotechnologies in a variety of emerging and converging applications. This will result in a suite of new manufactured nanomaterials (material with any external dimension in the nanoscale or having internal structure or surface structure in the nanoscale), nanodevices and nanosystems with unprecedented properties and functionality. Research, particularly on manufactured nanomaterials (intentionally produced for commercial purposes to have specific properties or specific composition) has shown the potential to have a widespread impact in health, information, energy and many other fields. However, there are many factors to be considered and challenges to be overcome in adopting nanotechnologies which are highlighted in this study. Biotechnology is defined as the application of science and technology to living organisms and products of living organisms, to produce knowledge, goods and services. In the next decade, advancements in biotechnology are expected to achieve significant advances in genomic information and genetic engineering, new developments in therapeutics and personalised medicine, increased yield of plant and animal foods, and the development of a number of biological based products such as bioplastics, biocatalysts and advanced biofuels. However, the biotechnology industry faces many barriers to success, most important of which are those that affect the development of appropriate research and technology transfer capability, including access to funding, skills and regulatory issues. Synthetic biology, an advanced form of biotechnology, is an emerging field of research that combines elements of biology, engineering, genetics, chemistry, and computer science. It converges with nanotechnology in that it involves molecular engineering at the nanoscale. Whilst the timeframes are longer than that of nanotechnology and biotechnology, the potential promise of synthetic biology is immense, including applications in:

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1. Clean energy and biofuels 2. Pollution control and remediation 3. Agriculture and food 4. Medicine and health 5. Biosensors While most of the outputs of synthetic biology remain in early stages of development, some applications are expected to come to market within a few years. However, the pace of acceleration of synthetic biology is likely to increase dramatically in the years ahead, and is expected to impact many products and services.

1.1. Key Findings and Considerations


For Australia to have the ability to resolve major national challenges and remain globally competitive against advanced and emerging economies in research, scientific know-how and product innovation that incorporate enabling technologies, it will need a clear strategy and policy agenda to capitalise on its existing comparative advantages in these domains. Discussions of opportunities, risks and barriers in this paper indicate that the development of new enabling technology applications, their translation into valuable outcomes for industry and society, and their subsequent adoption and utilisation to address key national challenges will require close collaboration between government, industry and the broader community. Australia possesses world-class enabling technology strengths (such as world leading research organisations) with the prospect to lead future developments and market applications.

1.1.1. Nanotechnology
Applications derived from nanotechnologies are expected to make a significant contribution to diverse fields such as: Water purification and treatment, which will become increasingly important in both urban areas, agriculture and mining, particularly as a result of the impact of climate change Health care, involving applications in medicine, dentistry, pharmaceuticals and diagnostics Energy efficiency and clean energy technologies, including improved battery storage, improved solar cells, and micropower supplies for personal electronics This ETRM examines these applications in terms of tools and platforms; component materials and reagents; structures, devices and applications; and systems integration and intelligence.

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Through the Health, Safety and Environment Working Party of NETS, in which all the major regulators are involved, risks that might be posed by nanotechnologies are being assessed to see if current regulations are adequate. Furthermore, the International Organisation for Standardization (ISO) has created two nanotechnology standards; ISO/TS27687

(Nanotechnologies - Terminology and definitions for nano-objects) and ISO/TS80004 (Nanotechnologies - Vocabulary). Although nanoparticles occur naturally, nanotechnology involves engineered nanoparticles to form manufactured nanomaterials, and may pose risks through inhalation, dermal penetration or environmental persistence. Both nano-ecotoxicology (toxicity to the environment and ecological systems) and nano-genotoxicology (toxicity to human health) are being developed to evaluate the global impact of these new technologies.

1.1.2. Biotechnology
Although a more mature technology than nanotechnology, future innovation in biotechnology, including industrial biotechnology, will continue to contribute in a range of fields, including: Agriculture; genetic modifications of crops and treatments of diseases and pests Biofuels Bioinformatics Chemical and plastics industry feedstock, replacing petroleum derived products Diagnostics Human therapeutics, including stem cell therapies and regenerative medicine Reagents and other active molecules. As biotechnology is the application of technology to living organisms, it is subject to extensive regulation which deals with both health and safety and ethical issues. Biotechnology faces considerable cost barriers for successful commercialisation through clinical trials in medical biotechnologies, and comparative cost structures in industrial biotechnology. Biotechnology and nanotechnology are converging into a new field known as

nanobiotechnology. This field of study includes third generation DNA sequencing that incorporates nanopores, and the development of bio-chips (lab on a chip) involved in monitoring health.

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1.1.3. Synthetic Biology


Synthetic biology is an advanced form of biotechnology that incorporates and extends nanobiotechnology, involving molecular engineering at the nanoscale. Potential applications include: Biofuels; including algae-based products Hydrogen fuel Biohydrometallurgy in mining Regenerative and personalised medicine; including vaccines Food additives Environmental remediation Biosensors Genome engineering Synthetic biology raises both ethical and regulatory concerns, such as unanticipated adverse effects on human health and the environment. Applications using synthetic biology also raise new concerns about national security and biosecurity, and the use of synthetic biology for the enhancement of human performance.

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2.0 INTRODUCTION
The Australian National Enabling Technologies Strategy (NETS) Expert Forum is focused on new forms of nanotechnology, biotechnology and synthetic biology. This includes areas of technology intersection and those enabled by information and communication technology (ICT) and cognitive science. These new enabling technologies are also often referred to as NBIC (nano-bio-info-cogno) or GRIN (genetics, robotics, information, nanotechnology) technologies in literature describing this emerging field. Although significant overlap and convergence exists between nanotechnology, biotechnology and synthetic biology, each of these enabling technologies are described, analysed and discussed through three separate perspectives, giving both a global perspective, and relating this to the particular context of developments in Australia. This Enabling Technologies Roadmap (ETRM) seeks to identity: 1. New and enabling technologies, providing a horizon scan of what is currently commercialised (horizon 1) 2. What is currently under development (lab bench) with expected commercialisation within the next decade (horizon 2) 3. Long-term (blue sky - greater than 20 years) technologies and applications (horizon 3). The roadmap aims to outline enabling technology issues that may arise in terms of drivers, opportunities, barriers, risks, and disruptive potential (the potential to disrupt existing industrial processes, industries and markets). The roadmap also aims to examine the potential for the enabling technologies to address Australias major national challenges including climate change, energy use, resource efficiency, health and ageing, national security and leveraging the mining boom. The result of this roadmap is intended to help guide the development of a portfolio of priority national investments in these enabling technologies to help sustain Australias global competitiveness in scientific and technological knowledge, leading to the successful commercialisation of value-added goods and services. This report outlines possibilities (especially across horizon 2 and 3) which may or may not be achieved. Potential benefits will need to be considered against any risk and concerns, and the degree to which they can be appropriately managed. The scope of this project includes a desktop review and foresight exercise to assess the potential development, direction and adoption of new and converging enabling technologies that are relevant both in Australia and internationally.
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Key trends and drivers that influence the development and application of emerging enabling technologies are outlined in Section 3.0. These include major international and geopolitical trends, such as increased competition from emerging economies in the technology sector, demographic trends such as changing consumer needs and ageing populations, and climate change. Also addressed is the increased global pressure on natural resources, and the need for improved and sustainable resource use and waste management. A further trend is increasing consumer activism around ethics, the environment, and health and safety issues associated with new technologies. Sections 5.0, 6.0 and 7.0 provide a scan of enabling technologies, segmented by nanotechnology, biotechnology and synthetic biology, respectively, with focus placed on horizon 2 and horizon 3 developments. Major drivers, opportunities, barriers, risks and disruptive potential are discussed for each segment. Increasing convergence of disciplines was identified as a common theme among and between all technology areas. The technology scan is compiled into a summary table of emerging technologies in Section 4.0. Both currently and continuing into the future, Australia is and will face a number of major national challenges. Many of these challenges are global in their nature, but will present unique problems for Australia. Addressing these challenges will be vital to ensure the future growth and prosperity of the nation, and will require a response that addresses Australias distinct national circumstances. Section 8.0 considers how the enabling technologies identified in this roadmap might make a significant contribution to the major challenges faced by Australia. The discussion takes into account the opportunities, risks and barriers specific to these new and emergent enabling technologies. The major national challenges identified and considered in Section 8.0 are as follows: Capturing opportunities from the mining boom Impacts of climate change Increasing demand for energy Sustainable use of natural resources Ageing of the population Food security Biosecurity Global competitiveness and productivity of Australian industry National defence Section 9.0 presents a concluding discussion of the factors that influence the adoption and utilisation of enabling technologies. It examines the challenges to uptake of enabling
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technologies

in

Australia

including

the

move

from

technology-push

to

market-pull

commercialisation and issues of absorptive capacity. The ability for these technologies to provide new products and services, and address complex societal challenges depends on major market barriers and drivers. Convergence of technologies and disciplines, and collaboration between researchers, governments and the private sector are also major themes in the successful commercialisation and adoption of enabling technologies, and the subject of a range of government initiatives that will impact on the uptake of the enabling technologies. Another major factor is the regulation of the technologies to manage environmental health and safety issues, which are being addressed by regulators through the Health, Safety and Environment Working Party of NETS, and Australias active participation in major international collaboration on these issues. Finally the ETRM will also examine ethical issues that are likely to arise in relation to the application of the enabling technologies to human enhancement, as well as to the treatment of genetic disorders, disabilities, injury and degenerative diseases.

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3.0 KEY TRENDS AND DRIVERS


Over the next ten to twenty years a number of key trends and drivers will influence enabling technologies and their potential to revolutionise the way people, industry and society will behave from an economic, social, cultural and environmental perspective. Many broad societal factors will interact with enabling technologies. This will significantly influence the development of new emergent and converging technologies, products, and services to solve these broad societal issues and challenges.

3.1. Globalisation
The global economy, although currently in a state of fluctuation, will continue to grow and develop through the influence of developing nations such as China, India, Russia and parts of South America. This will be predominantly driven by their increasing demand for a number of commodities and products, including food, energy, resources, minerals, water and consumer products. Many companies have already shifted or will shift their focus towards the needs of these developing nations. For example, the Chinese economy will continue to expand rapidly in the next decade and its demand for food, water, energy, iron ore and coal will remain elevated. The digital information economy has significantly changed the way communities communicate, conduct business, educate people, track the movement of diseases and monitor changing environmental conditions. The increased spread and speed of knowledge transfer has further opened global markets and increased competition, thus speeding the process of globalisation. The effects of globalisation play an important role in the formulation of policies to support industry sectors such as those discussed in this report. Globalisation means that Australian policy strategies cannot be developed in isolation of the global economy. Insights into where Australia fits into the overall enabling technologies value chain must be gained to better understand where Australian industry can leverage its expertise to maximise value for the nation.

3.2. Energy and the Environment


Existing fossil fuel supplies will diminish significantly over the next twenty years. Therefore, increased demand for alternative energy sources will emerge in order to power the needs of the increasing global population and the industries that supply their products and services. Future alternative energy systems will be characterised as predominantly clean, renewable in nature and possessing a low or negligible carbon emission in the whole lifecycle of energy production.
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Environmental responsibility through new regulations and societys changing attitudes for lower carbon emissions will have a significant impact on industry. Society and governments will continue to demand increased environmental responsibility from consumers and industry to reduce the impact of climate change on the planet. Furthermore, protection of the natural environment, particularly ecosystems that are currently under threat, will be a key focus in future business and government decision-making, whereas in the past, many costs to industry associated with pollution, environmental degradation and waste were externalised to be absorbed by the natural environment. These costs are increasingly being factored into production systems and human habitats.

3.3. Resource Efficiency and Waste Management


Organic and inorganic waste continues to grow and is becoming a significant burden on local government authorities and a number of industries. As a result, new regulations are emerging providing guidelines for managing and treating waste. Future design for manufacture will need to take into consideration the full lifecycle of new products, including packaging, recycling and reuse characteristics. Markets are dictating a move towards minimal or no packaging and the use of biodegradable or recyclable materials for new products. Organic waste has many beneficial uses if managed and processed appropriately, including extraction of value-added bioactives, fertiliser, and feedstock for energy production, such as biogas. Fast moving consumer goods and other products and services will require redesign to minimise the waste elements, maximise recycling and consider re-use using a cradle-to-cradle strategy rather than a cradle-to-grave approach. Manufacturing businesses will increasingly become more responsible for the management of waste emanating from the products they develop.

3.4. Ageing Population


Australias ageing population will shift consumer demands, particularly towards healthcare products and related applications. There is an emerging view that the flow of funds needs to shift from stand-alone aged care facilities to ageing in place, supporting older Australians to remain in their own homes and neighbourhoods while receiving heath care and social support. The uptake of eHealth, telehealth and the ability of new nano devices to monitor health in the home will support this shift. Increased life expectancy among humans will also influence healthcare, through the increased demand for medical products and services, including aged lifestyle and aged care needs, particularly those associated with the management of chronic

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diseases that increase with ageing. Furthermore, the ageing population is placing increased pressure on pension funds, requiring new approaches to funding aged care services.1

3.5. Changing Consumer Needs


As the global population continues to grow and urbanise over the next ten to twenty years, consumers will demand new leisure goods, telecommunications, electronics, improved health products and services, mass transportation, basic commodities, food, energy and water. Buyer behaviours will continue to influence global markets through the ability of consumers to source products and services via the internet, resulting in increased market competition and greater control of the value chain by consumers. The demands for future food production stimulated by a growing global population will require increased agricultural infrastructure and productivity. While food availability is not expected to cause too much concern within Australia, globally, food shortages are expected to have a major impact. Satisfying the increased global demand for food will require novel practices throughout the supply chain, particularly in distribution. Demand for raw materials to develop the products and services of the future will increase, placing pressure on existing commodity prices. The shortage of rare earth elements and diminishing essential raw materials will require replacement and substitution that can only be achieved through revolutionary strategies.

Productivity Commission, Caring for Older Australians, June 2011, and DIISR, Report of the Foresight Workshop on the Uptake of Enabling Assistive Technologies in Aged Care, August, 2011.

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4.0 ENABLING TECHNOLOGIES SUMMARY TABLE


The NETS program was established in 2009 to provide a framework to support the responsible development and uptake of enabling technologies. These enabling technologies are expected to impact on and enable other technologies and applications in many different industry sectors including manufacturing, agriculture and food, energy, health, chemicals, plastics and pulp and paper. NETSs aim has been to improve the management and regulation of biotechnology and nanotechnology in order to maximise community confidence and community benefits from the use of new technology. As noted in the Strategy, issues related to the development of enabling technologies straddle jurisdictional and portfolio boundaries, requiring national coordination. As enabling technologies span different industry sectors, and because their commercial uptake is as yet in its infancy, to provide an overview of the enabling technologies and their applications, the roadmap of the emergent bio- and nano- enabling technologies has been identified by conducting a comprehensive review of academic literature, industry research databases, and publicly available reports from relevant industry bodies, rather than through consultation with industry. Major drivers, opportunities, barriers, risks, challenges and disruptive potential are discussed for the three main technology segments: nanotechnologies, biotechnologies and synthetic biology (which is a form of advanced biotechnology involving molecular engineering at the nanoscale). Nanotechnologies, biotechnologies and synthetic biology can enable other areas of science and technology, converging to produce new research and technology developments for different and varied applications. Drawing on technology scans that focus on horizon 2 (lab bench) and horizon 3 (blue sky), but also including horizon 1 (already being commercialised), a Summary Table of these technologies and their applications has been developed to provide a ready reference for the range of developments in this rapidly emerging area of advanced technology. In developing the ETRM some difficulty was experienced in separating out horizon 2 and 3 technology developments and therefore a grey zone exists between the two horizons resulting in potential overlap. The results of this roadmap will help to guide the development of a portfolio of priority national investments in these enabling technologies. For the purposes of this ETRM, the enabling technologies are defined as having the following characteristics:

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Show high interdisciplinarity Are transformative in nature and have the potential to disrupt or create entire industries Have the potential for significant, systemic and long-lasting economic, social and political impacts Have the potential for development of new capabilities that address existing problems Open up new possibilities and markets Create new opportunities for responses to global issues. Although the Roadmap focuses on nanotechnology, biotechnology and synthetic biology, the enabling technologies are also converging with developments in ICT and cognitive technologies in a range of fields that includes energy, medicine education and human enhancement linked to strategic defence applications. To assist in understanding the interdependent and overlapping nature of the technologies and their applications, the framework of the enabling technologies roadmap adopts a four-stage development, as outlined in Figure 1. Figure 1: Enabling Technologies Roadmap Framework

Source: AIC, 2011

Table 1 outlines a summary of the ETRM providing a future outlook, highlighting key horizon 1, 2 and 3 developments and applications globally.

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Table 1: Developments and Applications in Nanotechnology, Biotechnology and Synthetic Biology


DEVELOPMENT AREA HORIZON 1 - NOW HORIZON 2 - 2011 TO 2020 HORIZON 3 - >2020 Biomolecular engineering and design tools Genomic engineering

Tools and Platforms

Biological detection and Nanolithography analysis tools Nanofabrication tools In silica modelling and Molecular & genomic simulation tools engineering Nanoscale components Nanomaterials

Atomic force microscopy Regenerative medicine Functional nanomaterials Engineered functional genomes Biomaterials Biocatalysts Nanomotors Advanced stem cell technology Biohydrometallurgy Synthesis of active nanostructures Nanoscaffolds Smart medical devices Smart implants Nanoarrays Biosensors Composite structures Advanced semiconductors Holographic memory Bioremediation Functional biological nanostructures Self-powered devices Nanomachines Nanorobots Advanced composite ceramics Nano-based semiconductors Nanotribology Nanojoining Nanosensors Microbial enhanced oil recovery Metamaterials Biocompatible nanomaterials Advanced enzymes

Components, Materials and Reagents

Nano powders Nanowires Thermoelectric devices Agrosensors Passive nanoscale structures Biological detection devices Stem cell therapies Smart glazing

Nanostructured organic Structures, Devices photovoltaics and Applications Pest resistance and herbicide tolerance Marker assisted selection Somatic cell nuclear transfer (livestock)

Bioinformatics Integrated energy storage systems Solid state lighting

Biological electronic interfaces (RFID) Pharmocogenomics Drug delivery systems Synthetic tissues Fuel cells

Biomimetic design processes Biofabrication templates Directed self-assembly systems Tissue engineering systems Metabolic pathway engineering Nanoinformatics Nanocomputing Geoengineering Nanobiotechnology Cognitive science integration

Systems Integration and Intelligence

Biofuels Bioplastics Cell-based therapies Nanohydrogen production and storage Personalised medicine and therapeutics

Source: Australian Institute for Commercialisation, 2011

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5.0 NANOTECHNOLOGY
There is on-going international debate and discussion about the correct definition of nanotechnology, however, according to the International Organization for Standardization (ISO), nanotechnology is defined as: the application of scientific knowledge to manipulate and control matter at the nanoscale level to make use of size and structure dependent properties and phenomena distinct from those associated with individual atoms or molecules or with bulk materials. Further information can be found in: ISO/TS27687 (Nanotechnologies - Terminology and definitions for nano-objects) and ISO/TS80004 (Nanotechnologies - Vocabulary). The nanoscale is the size range from approximately 1nm to 100nm. 2 At this size range, the laws of physics operate in unfamiliar ways, and it is this that determines both the constraints and the opportunities of nanotechnologies and nanoscience. 3 The potential opportunities associated with nanotechnologies have led to significant investment by governmental institutions, public research centres, universities and firms throughout the world. 4 Nanotechnologies encompass the production and application of physical, chemical, and biological systems. Horizon 3 forecasts promise widespread applications of nanotechnology as an enabling technology in various industries and converging disciplines. As highlighted by Roco et al (2010), 5 the development of nanotechnology has come to encompass a rich infrastructure of multidisciplinary professional communities, advanced instrumentation, user facilities, computing resources, formal and informal education assets, and advocacy for nanotechnology-related societal benefit. This infrastructure is critical to further drive R&D to help realise the opportunities embedded within nanoscience. Nanotechnology exhibits a strong degree of convergence with many other disciplines, such as the information and communications technologies (ICT) industry. ICT will interface neatly with biomedicine and nanoscience, with applications in areas such as drug delivery, therapeutics, imaging and diagnostics. The opportunities and products arising from technology convergences like these are difficult to predict, and have great potential to transform and disrupt everyday

Miles, J., (2010) Nanometrology and Documentary Standards for Nanotechnology, Nanotechnology Work Health and Safety Symposium September 2010.

Foresight Horizon Scanning Centre, (2010) Technology Annex, Technology and Innovation Futures, Department for Business, Innovation and Skills, London. Salerno, M., (2007) Designing foresight studies for Nanoscience and Nanotechnology (NST) future developments, Technological Forecasting & Social Change.

Roco, M.C., Mirkin C.A., Hersam, M.C., (2010) Nanotechnology Research Directions for Societal Needs in 2020, Retrospective and Outlook, Springer.

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living. 6,7 Products and technologies arising from nanoscience have the potential to not only improve livelihoods, but help address national and global challenges. The aim of this chapter is to build a roadmap of emerging nanotechnologies, segmented by the following areas of application: nanotools and platforms, manufactured nanomaterials and components, and nanodevices and systems, which are addressed in Sections 5.8, 5.9 and 5.10 respectively. Section 5.1 describes the global nanotechnology market, followed by an analysis of drivers, opportunities, barriers, risks and the disruptive potential of nanotechnology in Section 5.2.

5.1. Nanotechnology Global Market Overview


Nanotechnology is a multidisciplinary field with significant disruptive potential. 8 Because of the substantial opportunities associated with the development of nanotechnologies, governments worldwide have shown significant interest in nanotechnology research and development. By the end of 2008, nearly USD $40 billion had been invested by governments in nanoscience, with a further USD $9.75 billion invested in 2009. Key governments investing in nanoscience include: 9 European Union (27 members + Seventh Framework Programme) Russia United States Japan China Regardless of the large investment from government, private investment is expected to exceed public investment. In 2008, Cientifica 10 estimated that corporations across the globe would spend USD $41 billion on nanotechnology R&D in 2010, focussing on sectors such as semiconductors, pharmaceutical and health care, aerospace, defence and food. Figure 2 highlights the many different applications of nanotechnology and the segmentation of R&D funding towards each application in 2007, while Figure 3 highlights the expected breakdown in 2015.

Foresight Horizon Scanning Centre, (2010) Technology Annex, Technology and Innovation Futures, Department for Business, Innovation and Skills, London. The Royal Society & The Royal Academy of Engineering (2004) Nanoscience and nanotechnologies: opportunities and uncertainties. Barton, C. (2007) NANOTECHNOLOGY: Revolutionizing R&D to develop smarter therapeutics and diagnostics. Business Insights.

8 9

Cientifica Ltd. (2009). Nanotechnology Takes a Deep Breath... and Prepares to Save the World! Global Nanotechnology Funding in 2009. Cientifica Ltd.
10

Cientifica Ltd. (2009). Nanotechnology Takes a Deep Breath... and Prepares to Save the World! Global Nanotechnology Funding in 2009. Cientifica Ltd.

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Figure 2: Applications of Nanotechnology, 2007

Source: Business Insights, 2007

Figure 3: Applications of Nanotechnology, 2015

Source: Business Insights, 2007

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BCC Research 11 estimated that the global market for products incorporating nanotechnologies was approximately USD $15.7 billion in 2010, with forecasts to grow to USD $26.7 billion by 2015 (a compound annual growth rate (CAGR) of 11.1 per cent from 2010 through 2015). Figure 4 illustrates an estimate of the global value of sales for products incorporating nanotechnologies. These figures include well-established commercial nanomaterials

applications, such as nanocatalyst thin films for catalytic converters, as well as new technologies, such as nanoparticulate fabric treatments, rocket fuel additives, nanolithographic tools, and nanoscale electronic memory. Table 2 segments the global nanotechnology market by product type, highlighting the dominant market share of nanomaterials, and the expected rapid growth rates for nanodevices through to 2015. 12 Figure 4: Global Market for Products Incorporating Nanotechnologies, Through to 2015, (USD $ Million)

Source: BCC Research, 2010

Table 2: Global Nanotechnology Market by Type, Through to 2015 (USD $ Million)


NANOTECHNOLOGY Nanomaterials Nanotools Nanodevices TOTAL
Source: BCC Research, 2010

2009 9,027.2 2,613.1 31.0 11,671.3

2010 9,887.9 5,797.2 35.4 15,720.5

2015 19,621.7 6,812.5 233.7 26,667.9

CAGR% 2010 - 2015 14.7 3.3 45.9 11.1

11 12

BCC Research. (2010). Nanotechnology: A Realistic Market Assessment BCC Research. (2010). Nanotechnology: A Realistic Market Assessment

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As

highlighted

within

this

section,

healthcare

and

pharmaceutical

applications

for

nanotechnologies is an area expected to witness rapid growth, with estimated that the industry will assume around 17 per cent of the global market for nanotechnologies by 2015. The three key areas where industry experts expect nanotechnology to have the greatest opportunities and impact within the healthcare and pharmaceutical industry are: diagnosis, drug delivery systems and health monitoring. 13

5.2. Nanotechnology Analysis


Nanotechnology encompasses many different technologies, each of which have a broad and growing number of applications in numerous industries. As nanotechnology further develops, it will enable the creation and advancement of innovative areas of research such as synthetic biology, nanobiotechnology, cost-effective carbon capture, quantum information systems, geoengineering, and other emerging and converging technologies. 14 The idea that

nanotechnology can enable other areas of science and technology is expressed in the concept of converging technologies: the combination of two or more broad areas, such as biotechnology, ICT, nanotechnology and cognitive science. 15 Converging technologies have blurred the boundaries between existing industry sectors, and this trend will continue into the future with further development in technological fields. It is the convergence of technologies and blurring of boundaries that will create opportunities for nanotechnology and maximise its disruptive potential. Table 3 highlights some of the basic building blocks of nanotechnology and potential end-use products. This list is by no means exhaustive, and is continually growing, as R&D continues. The technologies highlighted in this list provide an indication of some of the products that are expected to be commercialised from nanotechnology.

13

Barton, C. (2007) NANOTECHNOLOGY: Revolutionizing R&D to develop smarter therapeutics and diagnostics. Business Insights.

14

Roco, M.C., Mirkin C.A., Hersam, M.C., (2010) Nanotechnology Research Directions for Societal Needs in 2020, Retrospective and Outlook, Springer. Foresight Horizon Scanning Centre, (2010) Technology Annex, Technology and Innovation Futures, Department for Business, Innovation and Skills, London.

15

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Table 3: Building Blocks of Nanotechnology Used, Components and Final End-Use Products
BUILDING BLOCKS Metal/Organometallics Catalysts Nanoparticle coatings, UV Block Dispersions, Chemical Mechanical Polishing (CMP) slurry additives Films and encapsulation Fabric coating Scanning probe tip, Field emitting devices, Polymer additives, Carbon composite fillers, Electrodes, Transistors Coated thin films Self-assembling structures Reagents Medical implants COMPONENTS END-USE PRODUCTS Fuels, Chemicals Sunscreens, Cosmetics, High performance coating, CMP slurries Solar cells, in vitro diagnostics, Gene expression assay, Medical imaging Moisture wicking apparel, Stain resistant apparel Aerospace, Displays (experimental), Sporting goods, Electronics, Nonvolatile memory, Automobiles, Super capacitors, Atomic force microscope Solar cells, Displays Molecular memory, Solar cells Bio-defence, in vitro diagnostics Drug delivery, in vivo diagnostics

Metal Oxides

Silicon Quantum dots Nanowhiskers

Carbon Nanotubes

Inorganic Nanostructure Organic Molecules Gold core oligonucleotides Nanoscale porous silicon

Source: Global Industry Analysts, 2010

Nanotechnology techniques, such as the use of silicate nanoclays, metal oxide nanoparticles, and carbon nanotubes are emerging as key technologies currently being commercialised into a number of end user markets. These end user markets include: food and beverage packaging, catalytic converters, coatings, electrostatic body panel painting, fuel cell electrodes, hygiene products, nanocomposite plastics, photographic films and sunscreens to name a few. 16 Existing and emerging innovative nanotechnologies will be applied to a growing field of applications. They are expected to have both an evolutionary and potentially disruptive impact on existing industries in terms of manufacturing processes, applications and products, particularly in the areas of health, life sciences, water management and clean technology. Emerging nanotechnologies will also have impacts on government policy and international trade. Table 4 outlines emerging end user markets and a timeline for commercialisation of new technologies.

16

Global Industry Analysts (2010) Nanobiotechnology

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Table 4: End Use Application - Commercialisation Time Grid (2010)


TIMELINE APPLICATION AREA APPLICATION / TECHNIQUE 0-2 years x x x x x x x x x x x x x x x x x x x x 3-6 years 7-10 years 10 + years

Food and Beverage

Edible Wraps Nanocodes

Biotechnology Gallium Nitride Nanotubes Biomedical Energy Health and Life Sciences Prosthetic Legs Polymers for Fluorescent Probes Nanoengineered Prosthetics Nanotubes (Select Applications) Nanorobots Sensors Carbon Nanotubes Nanocomputing Quantum Computers Electronics and Communications Carbon Nanotubes Bar Coded Beads (Microbeads) Magnetic Stamps Memory and Display Systems Semiconductor/Electricity Electricity Nanochips and Biochips Thermoelectricity High Efficiency Solar Energy Cells Fuel Conversion Transportation and Other Applications
Source: Global Industry Analysts, 2010

General Applications

Energy

Fuel Cells

Other disciplines that are expected to emerge from convergence with nanotechnology include spintronics, plasmonics, metamaterials, and molecular nanosystems. The establishment of nanoinformatics as a new field for communication, design, manufacturing, and medicine in
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nanotechnology will also be important. 17 These emerging fields are addressed further throughout this chapter. Nanotechnology has fostered the convergence of fundamental and applied R&D and requires expert input from the fields of physics, chemistry, engineering, and biology. This poses a number of challenges for future research structures, technology transfer and intellectual property expertise, as well as for the future training of researchers, who not only have to remain experts in their own field, but must also improve their literacy in neighbouring fields. 18 Further, concern has been raised that patent offices will prove unable to appropriately handle requests to patent nanoscience developments, due to this interdisciplinary nature. 19

5.3. Drivers
The key driver of research into nanotechnology is the enhanced properties exhibited by nanosized particles and materials. These properties have widespread potential applications across a variety of industries. 20 Research, particularly on nanomaterials will have a widespread impact in health, information, energy and many other fields where there is a major economic benefit to the commercialisation of new technologies. Major drivers for the uptake of nanotechnologies in the energy industry include the need for security and sustainability of energy supply, and growing consumer and government awareness of the implications of climate change. Climate change drivers for nanotechnology R&D encompass efforts to improve energy storage in green technologies, decoupling energy production from fossil fuels and decoupling from economic growth; carbon pricing and an increased global market for alternative energy technologies. Inefficiencies of energy supply through the current power grid also drive technological innovation. Losses of between six and eight per cent of power produced during electricity transmission and distribution are currently considered normal, with traditional coal plans only capturing 30-35 per cent of the energy in coal as electricity. 21

17

Roco, M.C., Mirkin C.A., Hersam, M.C., (2010) Nanotechnology Research Directions for Societal Needs in 2020, Retrospective and Outlook, Springer.

18

GENNESYS Whitepaper (2009) A New European Partnership between nanomaterials science and nanotechnology and synchrotron radiation and neutron facilities, Max-Planck-Institut fr Metallforschung, Stuttgart. Sylvester, D.J., Bowman, D.M., (2011) Navigating the Patent Landscapes for Nanotechnology: English Gardens or Tangled Grounds? Methods in Molecular Biology, 1, Volume 726, Biomedical Nanotechnology, Part 2, Pages 359-378.

19

Frost & Sullivan, (2011) Opportunities for Nanotechnologies in ElectronicsTechnology Market Penetration and Roadmapping, Technical Insights.
21

20

ABB (2007) Energy Efficiency in the Power Grid.

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Energy industry concerns will continue to drive R&D of nanotechnologies for applications in various systems, including energy conversion (hydrogen fuel cells and thin film and organic photovoltaics), energy storage (batteries, hydrogen storage and supercapacitors), energy transmission (superconducting systems), and energy use (insulation, solid state lighting, reduction of vehicle weight and improved combustion of fossil fuels). 22 Manufactured nanomaterials will enable the development of new energy generation systems based on nuclear, solar and renewable sources. Climate change is also driving nanotechnology applications in the environmental remediation industry, including the water and wastewater treatment industry. Growing numbers of communities are living in areas of severe water stress, driving the need to be more sustainable in their use and associated treatment of water. Driven in response to issues like these, nanotechnologies are beginning to gain greater use in water systems. 23 The rapid ageing of the population will drive the uptake of nanotechnology in the development of point of care medical devices and sensors to support ageing in place, the ability to monitor many medical conditions in the home through the integration of point of care devices with telehealth and electronic health records management (eHealth). The increase in chronic diseases, such as diabetes, asthma, high blood pressure, etc., combined with the cost of hospital care, and risk of infections in hospital, will further drive health treatments in the home. Nanomaterials will also contribute to the development of new drugs, therapies, and cures for currently chronic and fatal illnesses. Important areas of focus will be the application of nanomaterials in tissue engineering and medical imaging. Further, the application of nanotechnologies has immense capability and promise for advanced diagnostics, improved public health and new therapeutic treatments. 24

5.4. Opportunities
Nanotechnology has been described as complementary, not competitive, meaning that by itself, it is not an industry; instead nanotechnology complements and enables new and existing industries by providing new products and processes. Opportunities and new markets enabled by

22

Lu, M., & Tegart, G., (2008) Energy and Nanotechnologies: Strategy for Australias Future, Academy of Technological Sciences and Engineering (ATSE) OECD (2011) Fostering Nanotechnology to Address Global Challenges: Water. GENNESYS Whitepaper (2009) A New European Partnership between nanomaterials science and nanotechnology and synchrotron radiation and neutron facilities, Max-Planck-Institut fr Metallforschung, Stuttgart

23 24

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nanotechnologies are potentially numerous and include opportunities in the health, energy, and the environmental remediation markets. 25

Environment
Opportunities for nanotechnologies in the environmental remedial industries are numerous, with applications in environmental remediation, protection, maintenance and enhancement. From a global perspective, nanotechnology research, services and products applied to environmental protection is expected to present the largest opportunities for nanotechnologies, followed by environmental remediation. 26 Nanotechnologies applied to environmental protection will serve to facilitate and expedite ongoing remediation efforts, via the significant reduction of source pollutants. Strategies for environmental protection that include nanotechnologies encompass improved prevention and containment of toxic compound spills into soils, highly effective recycling and green technologies, along with wide-ranging and efficient improvements in energy conservation and generation. A number of environmental protection technologies are included under the clean technology discussion below. Nanotechnology-based remedial applications developed for use in the environment might have important positive impacts that may directly affect human health. Air quality remediation, water quality remediation and contaminated soil remediation are areas where nanotechnology enabled solutions have numerous opportunities.

Water
Water is a very important resource in Australia, as many important industries contributing to the Australian economy rely heavily on having access to a secure source of clean water. Agriculture and mining are just two industries that heavily rely on water access. However, processed water is able to be used in many applications for these two industries and many others. In this respect, nanotechnology has the potential to satisfy the water filtration needs of industrial, commercial, residential and personal consumers. 27 The market for nanotechnologies used in water and wastewater applications worldwide reached USD $1.6 billion in 2007, with filtration applications dominating the market, according to the

25 26 27

Brinks, P., (2007) Nanotechnology & Water: Opportunities and Challenges, Victorian Water Sustainability Seminar. Boehm, F., (2009) Nanotechnology in Environmental Applications: The Global Market, BCC Research. Boehm, F., (2009) Nanotechnology in Environmental Applications: The Global Market, BCC Research.

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OECD. 28 Further development of nanotechnologies for water remediation has been identified as a high priority area as clean water is an essential human development need. 29 The water industry in Australia already applies nanotechnologies for the detection and treatment of contaminated water. 30 Into the future, nanotechnologies are envisaged to be particularly efficient for three key water handling purposes: treatment and remediation, sensing and detection, and pollution prevention. Managing and securing access to clean water is a major challenge, not only in Australia but globally. Both in developed and developing countries, water shortages can have a tremendous impact, not only on health, but on industries such as agriculture, manufacturing, mining and power production. Over three billion people were living in areas of water stress in 2005, more than half a billion of those in severe water stress areas, presenting a major opportunity for nanotechnology to address this issue. 31 Nanotechnologies are expected to also play a role in water resource management, for example in industries such as mining and agriculture. Agriculture is by far the largest user of water, and is responsible for many cases of water pollution. Precision farming, using wireless nanosensor technologies will provide users with water management systems featuring good accuracy and rapid response rates, robustness and small size, as well as potentially combining sensing and feedback, for example in measuring levels of contamination and treating them. Water management in agriculture will be significantly improved in the future through the effective application of emerging nanotechnologies. 32

Agriculture
Nanotechnology is poised to alter the face of the agribusiness sector significantly over the next decade. Opportunities for nanotechnologies in the agriculture sector will result through the convergence and integration of nano enabled innovations stemming from the agrochemical, agrobiotech, sensor, telecommunications, global positioning, automation, computing, and modelling and display industries. 33

28 29

OECD (2011) Fostering Nanotechnology to Address Global Challenges: Water.

Hillie T., et al, (2009) Nanotechnology, Water, and Development, Commissioned by Meridian Institutes Global Dialogue on Nanotechnology and the Poor : Opportunities and Risks.
30 31 32 33

Brinks, P., (2007) Nanotechnology & Water: Opportunities and Challenges, Victorian Water Sustainability Seminar. OECD (2011) Fostering Nanotechnology to Address Global Challenges: Water. OECD (2011) Fostering Nanotechnology to Address Global Challenges: Water. Boehm, F., (2009) Nanotechnology in Environmental Applications: The Global Market, BCC Research.

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Clean Technology
The clean technology field holds numerous opportunities for nanotechnology based energy harvesting and generation applications. These applications may include batteries for electric vehicles, clean energy storage, solar cells, clean hydrogen generation and storage, fuel-cell catalysis and efficient, inexpensive micropower supplies for personal electronics, and many more. Opportunities for nanotechnologies in the clean tech sector are driven by issues like climate change and peak oil (when the world oil production reaches its maximum and begins its decline). Many major oil and power companies are investing in nanoscience R&D to enable energy applications. Environmental concerns tend to be the major driver for R&D investment in this area. Also driving these opportunities is increased investment and consumer demand for "green" and "clean" alternatives, 34 which is supported through various government initiatives.

Healthcare and Pharmaceuticals


An ageing population with growing healthcare needs represents an enormous opportunity for nanotechnology products. Nanotechnology will have major applications in medicine, dentistry, pharmaceuticals and diagnostics. For example, the integration of nanotechnology within cancer research promises to increase current understanding about how cancer progresses. The identification of biomarkers will help predict disease susceptibility and precancerous lesions, while multifunctional nanoscale devices could potentially simultaneously detect and treat cancer. 35

5.5. Barriers
There are many challenges and barriers to be considered and overcome to enable the responsible uptake of nanotechnologies across the different industry sectors where they promise to make a significant contribution to productivity and efficiency. Many of these challenges are interrelated and include: 36,37 Development of useful applications for nanoscale phenomena Regulatory, legal, political and ethical issues

34 35

Frost & Sullivan, (2007) Impact of Nanotechnology in the Energy Industry.

Barton, C. (2007). NANOTECHNOLOGY: Revolutionizing R&D to develop smarter therapeutics and diagnostics. Business Insights. Ministry of Research, Science and Technology (2006) Roadmaps for Science : nanoscience + nanotechnologies. Barton, C. (2007). NANOTECHNOLOGY: Revolutionizing R&D to develop smarter therapeutics and diagnostics. Business Insights.

36 37

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Competition with established microscale technologies License of proof-of-concept nanotools, delivery systems and products Intellectual property protection, and skilling of patent and technology transfer offices Potential internal reluctance to embrace nanotechnologies and nanotools within businesses Undertaking nanotechnology R&D in a way that pro-actively and meaningfully engages with society Large-scale production cost challenges Cost premium over existing products Need for multidisciplinary infrastructure and researchers Safety and toxicity and the effective management of the potential risks of manufactured nanomaterials Public and consumer concern about safety and resulting consumer activism that might inhibit commercial investment in nanotechnology-based products. The Australian Academy of Technological Sciences and Engineering (ATSE) 38 has described the nanotechnology value chain as starting with the production of nanomaterials (nanoscale structures in unprocessed form) which then become nanointermediates (intermediate products with nanoscale features) and finally nano-enabled products (finished goods incorporating nanotechnologies). Technical challenges to be overcome to encourage the processing and fabrication of nanomaterials (and therefore other elements in the value chain) include effective monitoring of materials through development and processing, efficient and sustainable methods for serial and large scale mass production, as well as rigorous quality assurance and control programs. The continual integration and ongoing development of new methods of synthesis and novel and innovative nano-objects into existing production processes will also need to be addressed to encourage the scale up of nanotech product fabrication into the future. 39 Further development of material characterisation methods and nanoanalytics programs will also be required to ensure the future development of nanotechnologies.

38

Lu, M., & Tegart, G., (2008) Energy and Nanotechnologies: Strategy for Australias Future, Academy of Technological Sciences and Engineering (ATSE). GENNESYS Whitepaper (2009) A New European Partnership between nanomaterials science and nanotechnology and synchrotron radiation and neutron facilities, Max-Planck-Institut fr Metallforschung, Stuttgart.

39

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Regulation
Hodge et al (2010) 40 suggests there are a number of regulatory challenges that society will confront with regard to nanotechnology. Some of these include: Large gaps in knowledge across various scientific frontiers. Answers are needed to address questions raised about the safety of nanomaterials, as well as the impact of engineered nanomaterials across the materials life-cycle. Significant multidisciplinary research will be needed to address this lack of knowledge. Developing appropriate metrology and standards for nanotechnologies. Effective methods for measuring air- and water-borne nanomaterials are needed.41 Establishing and articulating effectively the existence of regulatory gaps and triggers in current legislation. Effectively assessing alternative regulatory regimes that may be in practice, acknowledging strengths and weaknesses in different approaches. Balancing governments support for nanotechnology, as a basis for future innovation and economic growth, while enabling citizens to influence policy directions and protecting their health and safety. Ensuring appropriate transparency and trust continues across all areas of existing and evolving nanotechnology regulation frameworks. Due to the nature of nanotechnology, there are significant public confidence and trust risks facing regulators responsible for ensuring the safety of these products.

Nanometrology
Nanometrology, the science of measurement at the nanoscale, has been recognised by governments, research institutions and the private sector worldwide as vitally important to the development and commercialisation of nanotechnologies. Nanometrology is important both for the large scale production of nanoproducts, as well as for regulation. Further development of nanotechnologies depends on the development of innovative new measuring instruments and tools, test methods and the incorporation of nanometrology into the International Measurement System. 42 The National Measurement Institute (NMI) Australia (Nanometrology Group) is assisting to address the need for nanometrology instrumentation and standards in Australia. The group develops measurement infrastructure, expertise and standards for nanotechnology,

40

Hodge, G.A., et al (2010) Introduction: the regulatory challenges for nanotechnologies, International Handbook on Regulating Nanotechnologies, Hodge, G.A, Bowman, D.M, Maynard, A.D, (eds) Edward Elgar Publishing, Inc, pp. 3-25. Frost & Sullivan, (2009) Green nanotechnology, the trend of the future.

41 42

Miles, J., (2010) Nanotechnology Captured, International Handbook on Regulating Nanotechnologies, Hodge, G.A, Bowman, D.M, Maynard, A.D, (eds) Edward Elgar Publishing, Inc, pp. 83-107.

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with the aim of assisting Australian researchers and industries to capitalise on growth and commercialisation opportunities, and contribute to effective health, safety and environmental regulatory frameworks for nanotechnologies. The program is supported by the National Enabling Technologies Strategy. 43

Technology Transfer
The diversity of nanotechnologies poses a challenge for technology transfer and intellectual property expertise. The past decade has seen a rush of nanotechnology patent applications worldwide, which the patent system has struggled to cope with, primarily due to the complex multidisciplinary nature of nanotechnology patents, and the lack of consistent definitions and terminology within the field. Convergence of nanotechnology with fields like physics, chemistry, optics, ICT, biotechnology, and cognitive science leads to high interdisciplinarity within intellectual property to be examined. Patent offices had struggled with a lack of properly skilled and trained examiners to cover the numerous technical fields required. 44 Companies exploring the possibilities of nanotechnologies are also exposed to investment risks in nanotechnology enabled products, unsatisfactory intellectual property protection, and ineffective marketing and communication of product benefits potentially leading to consumer backlash. Due to the nature of nanotechnology, public acceptance issues involved with some applications of nanotechnologies may present barriers to effective commercialisation, for example, privacy concerns may be raised when miniature sensors become ubiquitous. These types of issues can put further at risk a companys investment into nanoscience R&D. 45

Social Challenges
In many of the industries in which nanotechnology is applied, a disruptive effect on the current practices used in that industry will be felt (further discussed in Section 5.7). The use of nanotechnologies within certain sectors could conceivably boost production, yet reduce prices and save on labour costs. As with the introduction of any disruptive technology, there is a risk that traditional labour forces could be disadvantaged. Ethical considerations must play an important role in the development of strategies for the incremental deployment of these nanotechnologies and there must be sensitivity as to the sustained wellbeing of the workers. 46

43 44

Australian Nanotechnology Network: National Measurement Institute Nanometrology Group Website, Accessed 27/09/2011.

Mandel, G. N., (2010) Regulating nanotechnology through intellectual property rights, International Handbook on Regulating Nanotechnologies, Hodge, G.A, Bowman, D.M, Maynard, A.D, (eds) Edward Elgar Publishing, Inc, pp. 388. OECD, Allianz (2005) Opportunities and risks of Nanotechnologies. Boehm, F., (2009) Nanotechnology in Environmental Applications: The Global Market, BCC Research.

45 46

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Unsuccessful management of truly disruptive nanotechnologies will result in negative public and consumer attitudes to nanotechnologies, inhibiting commercial investment in nanotechnologybased products. Nanotechnology convergence, the multiple ways in which nanotechnologies will combine, is also likely to generate a range of different social and ethical challenges. These types of challenges may be particularly relevant in longer term applications within nanobiotechnology, involving significant interface of material systems with, or internal modification of, the body.

5.6. Risks
Nanotechnology will enable many exciting new products and solutions over the next decade. However, like any new technology, it may pose risks that will need to be managed before wide scale development, commercialisation and adoption can take place. These risks include health and safety risks, ecological, business, political, social, ethical, and security risks and more. The Health, Safety and Environment (HSE) Working Group is a key element of the National Enabling Technologies Strategy. The HSE Working Group aims to address any potential HSE issues that may arise with the introduction of enabling technologies. The Working Group consists of regulators, policy makers and agencies with a direct interest in nanotechnology developments. One of the more important risks to be addressed is to satisfy concerns raised about the potential toxicity, health and safety effects, and invasive nature of some manufactured nanomaterials. As highlighted by Chaudhry et al (2010), 47 particular safety concerns are raised by those processes, products and applications that give rise to exposure to manufactured nanomaterials via inhalation (e.g. cleaning aids, and spray), skin application (cosmetics), ingestion (food and drinks) or intravenous delivery (some medicines and diagnostics aids). 48 Apprehensions from the community and policy makers globally have been fuelled by laboratory studies on the illeffects of some manufactured nanomaterials on animals. 49 A 2007 report by Monash University 50 found that Australias federal regulatory frameworks are generally well suited to allowing adequate management and control of risks posed by engineered nanomaterials and products incorporating nanomaterials, their manufacture, use

47

Chaudhry Q., et al, (2010) The current risk assessment paradigm in relation to the regulation of nanotechnologies, International Handbook on Regulating Nanotechnologies, Hodge, G.A, Bowman, D.M, Maynard, A.D, (eds) Edward Elgar Publishing, Inc, pp. 124-143. Maynard, A., (2006) Nanotechnology: A Research Strategy for Addressing Risk, Woodrow Wilson International Center for Scholars. Frost & Sullivan, (2009) Green nanotechnology, the trend of the future. Ludlow K., Bowman D.M. & Hodge G.A. (2007) Review of Possible Impacts of Nanotechnology on Australia's Regulatory Frameworks, Monash Centre for Regulatory Studies, Monash University

48

49 50

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and handling. However, this has been disputed by Mullins (2010) 51 who believes that specific regulation for nanomaterials is required to protect workers. Mullins states that there is an incorrect assumption that existing regulations and information about manufactured

nanomaterials in substances (or substances in nanoform) are sufficient to trigger the introduction of controls and processes in workplaces. There are calls for the implementation of nano-specific controls and processes, such as mandatory registry of products, nano-specific training and personal protective equipment. Safe Work Australia, under the Nanotechnology Work Health and Safety Program, is providing policy direction, conducting research and providing guidance on the potential work safety and health implications from applications of nanotechnology. Focus areas of the program include: Ensure nanotechnology is covered appropriately within the Work Health and Safety Regulatory Framework Improve understanding of the hazardous properties of engineered nanomaterials Assess the effectiveness of workplace controls in preventing exposure to engineered nanomaterials Develop procedures for detecting and measuring emissions exposure in workplaces Provide information and guidance for Australian nanotechnology organizations Ensure consistency with international approaches & contributing to international work This Safe Work Australia program is Australia-focused, and also contributes to global efforts on nanotechnology work health and safety. The program supports the National Enabling Technologies Strategy. 52 The International Risk Governance Council 53 states that the impact of nanostructures on the environment may be significant because of the potential for: Bioaccumulation, particularly if they absorb smaller contaminants such as pesticides, cadmium and organics and transfer them along the food chain Persistence, in effect creating non-biodegradable pollutants which, due to the small size of the nanomaterials, will be hard to detect.

Mullins, S. (2010), Are we willing to heed the lessons of the past? Nanomaterials and Australias Asbestos Legacy, Hull, M., & Bowman D.M. (eds), Nanotechnology Environmental Health and Safety: Risks, Regulation and Management, London: Elsevier, pp. 4969.
52 53

51

Safe Work Australia, Nanotechnology and Work Health and Safety Website, Accessed 27/09/2011 Roco M., Ortwin, R., (2006) White Paper on Nanotechnology Risk Governance, International Risk Governance Council.

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Nanotechnology has the potential to have disruptive impacts on developing economies. Nanoscale engineering offers the potential to transform existing materials and design entirely new ones. New manufactured nanomaterials may replace traditional raw materials, altering demand for these materials from commodity dependent developing countries. 54 Countering some of the risks mentioned, Maynard 55 (2007) foresees that in the long term, new ways of predicting and pre-emptively managing the potential risk of emerging nanotechnologies are expected to be developed. These are likely to include managing mechanistic toxicology, predictive risk assessment, management of later generation nanotechnologies, and

management of emergent behaviour and convergence between different technologies. Further, it is expected that new disciplines such as nano-ecotoxicology (toxicity to the environment and ecological systems) and nano-genotoxicology (toxicity to human health) will be developed into the future to evaluate the global impact of these new systems. 56

5.7. Disruptive Potential


Nanotechnology is a relatively young, yet rapidly expanding scientific discipline that is predicted to have important implications for a stunningly wide array of applications encompassing an extensive array of market sectors. Almost every industry will be affected by the emergence and further development of nanotechnologies. In many of the industries in which nanotechnology is applied, a disruptive effect on the current practices used in that industry will be felt. Nanotechnology may generate major paradigm shifts in many industry sectors, including longterm care, electronics, packaging, plastics, apparel, hospitality, paper and printing, glass, cosmetics and many more. Nanotechnologies are expected to assist in making existing industries more efficient and environmentally sustainable, as well as assisting to provide more effective, cheaper and energy efficient products and services. 57,58 Growth and demand for clean technology and alternative energy products are likely to be stimulated by the introduction of nanotechnologies in the near future, enhancing efficacies of technologies embraced by the industry, and displacing older technologies and business enterprises relying on them.

54

ETC Group (2005) The potential impacts of nano-scale technologies on commodity markets: the implications for commodity dependent developing countries. Maynard, A., (2007) Nanotechnologies: Overview and Issues. Nanotechnology Toxicological Issues and Environmental Safety, 114. Springer.

55

56

Saez, G., et al (2010) Development of new nano-tools: Towards an integrative approach to address the societal question of nanotechnology? Nano Today Wood, S., et al, (2004) The social and economic challenges of nanotechnology, Economic and Social Research Council. Morton, S., (2008) CSIRO Submission, Inquiry into Nanotechnology in NSW.

57 58

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Nanotechnologies are expected to have a large impact on the health care industry through the development of new technologies improving current practises in illness and disease diagnosis, treatment and prevention, both in developed and developing countries. Technologies and products resulting from the study of both nanotechnology, and the convergence of nano with biotechnology (nanobiotechnology) will have numerous applications in fields like medicine, dentistry and diagnostics. Implementation of these technologies will improve health and wellness outcomes for patients all over the globe.

5.8. Nanotools and Platforms


A key feature of nanotechnology is the dependence on appropriate tools and methodologies to characterise features and properties at the nanoscale. Without the continuing development of nanotools, the growth of the nanotechnology industry would be challenged. Pressure from the nanotechnology industry drives the development of nanotools, as tools and methodologies are needed for the continued growth of nanotechnology as a whole. Nanotools collectively refer to the technologies that enable scientists to visualise, engineer, and manipulate matter at the atomic level. To remain competitive, industrial companies and researchers need the ability to examine, characterise and measure matter. Using the most powerful tools available is essential for success, particularly at the nanoscale. 59

5.8.1. Global Demand and Applications


Commercial nanotools can be broadly classified into the following groups: 60 Nanomanipulators (manipulate or measure nanoscale objects or materials, including scanning probe microscopes) Near-field optical microscopes Nanomachining tools (cut, grind or otherwise change properties of nanoscale materials) Advanced optical lithography tools (produce nanoscale features on microelectronic devices). Nanotools accounted for approximately 36 per cent of the total nanotechnology market in 2010. Total sales of nanotools were projected to grow from USD $5.8 billion in 2010 to USD $6.8 billion by 2015. As shown in Table 5, advanced optical nanolithography tools is the largest market, however growth in this field is expected to be slow. Nanomanipulators while only

59 60

Global Industry Analysts (2011) Nanobiotechnology BCC Research. (2010). Nanotechnology: A Realistic Market Assessment

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accounting for a small share of the nanotool market, are expected to have a very high growth rate. 61 Table 5: Global Market for Commercial and Developmental Nanotool Applications, Through to 2015 (USD $ Million)
APPLICATION Advanced optical nanolithography tools Nanomanipulators Near-field optics Nanomachining tools TOTAL COMMERCIAL NANOTOOLS Developmental Nanotools TOTAL NANOTOOLS
Source: BCC Research, 2010

2009 2,250.0 135.0 47.1 16.0 2,448.1 165.0 2,613.1

2010 5,400 162.0 52.4 17.8 5,632.2 165.0 5,797.2

2015 5,715.0 403.1 89.5 29.9 6,237.5 575.0 6,812.5

CAGR% 20102015 1.1 20.0 11.3 10.9 2.1 28.4 30.5

Over the last 10 years, an array of nanotools and instruments have evolved to enable the development of nanomaterials and functionalise matter at the nanoscale. An overview of the current and emerging technologies that will assist with the analysis and synthesis of nanoscience is provided below.

Nanoscale Detection and Analysis


There are a large range of instruments that can be used for nanoscale detection and analysis of nanostructures. These include: atomic force microscopy; scanning electron microscopy; scanning near field optical microscopy; transmission electron microscopy; surface enhanced Raman scattering; surface plasmon resonance; and fluorescence resonance energy transfer. Of these, the most widely used technologies are atomic force and scanning electron microscopy. 62 The development of nanotools and instrumentation assists in the detection and fabrication of nanoscale systems. Some techniques and tools often used when undertaking nanoscale analysis can include: 63

61 62

BCC Research. (2010). Nanotechnology: A Realistic Market Assessment

Barton, C. (2007). NANOTECHNOLOGY: Revolutionizing R&D to develop smarter therapeutics and diagnostics. Business Insights. Barton, C. (2007). NANOTECHNOLOGY: Revolutionizing R&D to develop smarter therapeutics and diagnostics. Business Insights.

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Nanoarrays - miniaturisation of microarrays. Nanofluidics - the science of building microminiaturised devices with chambers and tunnels for the containment and flow of fluids to measure at the nanometer level. Nanofluidics are used for cell-sorting and single cell gene expression profiling. Nanoscaffolding - new nanomaterials that can be incorporated within cell culture systems to improve in vitro culture conditions and form a 3D microenvironment in which cells may be encapsulated, or act as microcarriers within culture suspensions. Nanotubes - carbon molecules that are long and thin and shaped like tubes. Potential to be very efficient electricity and heat conductors. Nanowires - are structures that have a defined lateral size constrained to tens of nanometers or less, and are unconstrained on the longitudinal axis. They have application in circuitry such as micro/nanofluidic systems. Quantum Dots - semiconductor nanostructures used to tag components within biological samples (proteins, DNA) with specific colours for high throughput screening and biological read outs. The continuing development of new nanotools and methodologies will assist in the creation of new ways to synthesise and fabricate nanomaterials and assembly of nanodevices.

Self-Assembly
The control of molecular self-organisation by means of chemical and physical stimuli is important to the successful creation and control of structure on the nanoscale. The selfassembling process is dependent on the fine balance of competing interactions between the different molecular parts or different molecules that exhibit similarities to complex biological systems. Nanoscale structures, through self-assembly will lead to applications that range from the development of new formulations for pharmaceuticals and pigments to morphology control, adhesion of biomaterials, the development of molecular electronics and biomimetic crystallisation. 64 Directed self-assembly is an emergent technology as it is promising to deliver a mass production, cost effective nanoparticle synthesis method. The directed self-assembly approach is still going through developmental phases and leverages existing patterning methods by combining them with self-organising systems, to create manufacturing techniques that can be

64

GENNESYS Whitepaper (2009) A New European Partnership between nanomaterials science and nanotechnology and synchrotron radiation and neutron facilities, Max-Planck-Institut fr Metallforschung, Stuttgart

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readily integrated into existing processes. In the near future directed self-assembly will be employed to yield functional nanostructures. 65

Nanoanalytics
Computational science prediction tools such as nanoanalytics and nanoinformatics are becoming progressively more important in the development of a cross-disciplinary, cross-sector information system for nanotechnology materials, devices, tools, and processes.

Nanojoining
Nanomaterials such as nanotubes, nanowires, nanostructured alloys and nanocomposites will be extremely useful when they can form integrated parts of devices and components. Nanojoining technology is driven by the current needs of nanomaterials, such as product miniaturisation, and the efficient and environmentally-friendly utilisation of materials. Nanojoining is a key technical prerequisite for the effective use of nanomaterials. The industrial potential of nanojoining techniques is significant and involves molecular and standard electronics and photonics, smart structures as well as structural applications. Within the next ten years, development and utilisation of in-situ and ex-situ (3D) tools for intelligent processing and characterisation of nanojoints is expected. A close inter- and transdisciplinary cooperation between life sciences and engineering fields is required to reach future goals for nanojoining. 66 Opportunities arising through nanojoining R&D include the formation of new processes (e.g. self-assembly), tailored joint properties and functional joints.

Nanotribology
Nanotribology is the study of friction, wear and adhesion at the nanoscale. While nanotribology is not a tool in itself, the study and influence of nanotribology principles will impact the development and design of manufactured nanomaterials into the future. Nanotribology is a truly interdisciplinary subject requiring knowledge of surface interactions, chemical environment effects, lubrication, mechanical stresses, as well as biochemical concepts. While the field is developing rapidly, most of the applications that can be realised through exploiting nanotribological ideas are still very embryonic. Current areas of interest in this field include understanding and controlling nanofriction, nanowear, nanoadhesion, nanomanipulation, bionanotribology and near contact issues.

65

Kumar, P., (2010) Directed Self-Assembly: Expectations and Achievements, Nano Review.

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GENNESYS Whitepaper (2009) A New European Partnership between nanomaterials science and nanotechnology and synchrotron radiation and neutron facilities, Max-Planck-Institut fr Metallforschung, Stuttgart

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Research into tracing the foundations of friction and wear on the nanoscale is expected to continue through to 2015, after which the development of new nanomaterials with tailored tribological properties and nanoengineered surfaces are likely. This will result in the development of new methods and applications that are not currently achievable, ranging from engine components for cars that improve fuel efficiency, to nanomachines to be used for microsurgery and repair of the human body. 67

5.9. Manufactured Nanomaterials and Components


The term manufactured nanomaterial covers any material with any external dimension in the nanoscale or having internal structure or surface structure in the nanoscale. These manufactured nanomaterials are intentionally produced for commercial purpose to have specific properties or specific composition. 68 Manufactured nanomaterials can be conventional (metals, ceramics, semi-conductors, etc.), new (carbon60, carbon70), and novel structures (wires, tubes, coatings, spheres, etc.) whose mechanical, electrical, reactivity and other fundamental properties are changed on account of the increased relative surface area of exposed material. Manufactured nanomaterials differ from bulk materials in their properties because of surface effects and because quantum effects become significant at the small scales involved. 69

5.9.1. Global Demand and Applications


Global demand for manufactured nanomaterials will be significant, projected to exceed USD $9 billion in 2018, and reach USD $34 billion by 2025, according to the Freedonia Group. 70 With this expected growth, nanomaterials will be prevalent in a wide range of markets, from pharmaceuticals to construction products and advanced energy storage devices. As shown in Table 6 and Figure 5, chemicals and polymers will be the source of most demand for nanomaterials.

67

GENNESYS Whitepaper (2009) A New European Partnership between nanomaterials science and nanotechnology and synchrotron radiation and neutron facilities, Max-Planck-Institut fr Metallforschung, Stuttgart Miles, J., (2010) Nanometrology and Documentary Standards for Nanotechnology, Nanotechnology Work Health and Safety Symposium September 2010.

68

69

Foresight Horizon Scanning Centre, (2010) Technology Annex, Technology and Innovation Futures, Department for Business, Innovation and Skills, London. Freedonia Group Inc. (2010) World Nanomaterials to 2013

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Table 6: Global Nanomaterial Demand by Type (USD $ Million)


ITEM Metal Oxides Chemicals & Polymers Metals Nanotubes Other World Nanomaterial Demand
Source: Freedonia Group, 2010

2003 266 136 45 20 4 471

2008 600 457 225 105 13 1400

2013 1,250 1,225 670 385 45 3,575

2018 2,600 3,015 1,800 1,430 190 9,035

2025 7,500 11,000 6,500 8,000 1,300 34,300

Figure 5: Share of Nanomaterial Demand by Type, 2003-2025

Source: Freedonia Group, 2010

Table 7 highlights many of the key applications for nanomaterials in the broad areas of medical, materials, devices and energy. As seen, many applications are more than 15 years away, highlighting that research in the field focuses on both near and future applications in society. Figure 6 highlights the value chain for nanomaterials, showing their integration into nanointermediates, such as coatings, fabrics, chips, etc., and then into nanoenabled products such as pharmaceuticals, electronic devices and clothing. 71

71

GENNESYS Whitepaper (2009) A New European Partnership between nanomaterials science and nanotechnology and synchrotron radiation and neutron facilities, Max-Planck-Institut fr Metallforschung, Stuttgart

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Table 7: Key Highlights for Nanomaterials in Industry


TIMELINE APPLICATION AREA APPLICATION / TECHNIQUE 1-4 years x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x 5-8 years 9-14 years 15 & above

Drug delivery Medical diagnostics Nanoarrays Medical Applications Biomaterials Smart implants Tissue/organ regeneration Nanobio Nanoelectromechanical Systems (NEMS) Cosmetics Coatings Lubricants Materials Textiles Composites Paints Chemical catalysts Food packaging Sensors Displays Memory/storage devices Devices and microelectronics Simple Integrated Circuits Microprocessors Quantum computing Molecular circuitry Energy conservation Fuel cells Portable solar cells Biomass conversion catalyst Clean coal Energy Portable energy cells Integrated solar cells Batteries/ supercapacitors CO2 capture/ sequestration Lighting Hydrogen production & use

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TIMELINE APPLICATION AREA APPLICATION / TECHNIQUE 1-4 years x x x x x x 5-8 years 9-14 years 15 & above

Ambient atmosphere remediation Water filtration Environmental Remediation CO2 sequestration Radioactive material recovery Soil remediation Pesticide replacements
Source: Adapted from Gennesys, 2009, ATSE, 2008 & BCC Research, 2009

Figure 6: Nanomaterial Application in the Industry and Value Chain

Source: Adapted from Gennesys, 2009

The physical, chemical and mechanical properties of nanomaterials are continuing to drive the development of the technology, providing new and more efficient materials. The nanomaterials market is expected to be predominantly driven by applications within the healthcare and electronics industries. Emerging applications for nanomaterials are expected in areas such as military and aerospace and energy sectors, driven by a growing need to improve safety and an increasing desire to advance the efficiency of clean technology devices. 72 The application and use of new

PRWeb, (2010) Global Market for Nanomaterials to Reach US$6.2 Billion by 2015, According to a New Report by Global Industry Analysts, Inc.

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nanomaterials will be essential to address major future global demands such as increased energy consumption and the ecological impact of products currently being used. 73

5.9.2. Current and Emerging Developments


Over the next ten years, nanotechnology researchers will focus on a range of issues to improve the performance, multifunctionality, integration, and sustainability of nanomaterials in a variety of emerging and converging technologies and applications. This will result in a suite of new nanocomposite materials with unprecedented and unique combinations of properties. In particular, the unique combinations of properties will allow previously disparate technologies to converge into single, multifunctional platforms. Specific examples include thermoelectrics, transparent conductors, combined supercapacitor and battery structures, integrated diagnostic and therapeutic devices, sensors/actuators, optoelectronics, and communication/computational systems. 74 This section aims to provide an overview of emerging manufactured nanomaterial technologies and potential applications. Research group Frost & Sullivan 75 have analysed common applications of nanomaterials with respect to current R&D activities, with the objective of prioritising various technological focus areas for appropriately directing R&D investments in the nanomaterials domain. From this analysis, from a future market perspective, Frost & Sullivan believe that nanomaterials will hold the most market potential in next generation nanoelectronics, followed by applications such as protective coatings, antiseptic systems, OLEDs (organic light emitting diode), flame retardants, conductive films, photovoltaics, and catalysts. Common nanomaterial synthesis methods are varied, and all have specific requirements and limitations that affect their potential applications. Conventional synthesis methods include the following: 76 Chemical vapour deposition Physical vapour deposition Sol-gel deposition Electrodeposition.

73

GENNESYS Whitepaper (2009) A New European Partnership between nanomaterials science and nanotechnology and synchrotron radiation and neutron facilities, Max-Planck-Institut fr Metallforschung, Stuttgart Roco, M.C., Mirkin C.A., Hersam, M.C., (2010) Nanotechnology Research Directions for Societal Needs in 2020, Retrospective and Outlook, Springer. Frost & Sullivan, (2010) Nanomaterials Strategic Portfolio Management. Frost & Sullivan, (2010) Nanomaterials Strategic Portfolio Management.

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Emerging synthesis methods include: Inert gas condensation Inert gas expansion Molecular self-assembly Sonochemical processing. The synthesis and assembly of new functional bio-nanomaterials will require an understanding of the complex relations between nanoscale structure and function in biological materials, and will enable advances in nanomedicine, bio- and biomimetic materials. This will lead to new applications in biosensors, implants and tissue engineering. The development of these requires an understanding of the dynamic processes that are found in nature. 77 Looking forward, there will be a focus on research to help improve the performance, multifunctionality, integration, and sustainability of nanomaterials in a range of emerging and converging technologies. As identified by Roco et al (2010), 78 specific priorities for the next 10 years include: Separation, fractionation and purification in an effort to realise nanomaterials with monodispersity in composition, size and shape. Realisation of hierarchical metamaterials with independent tunability of previously coupled properties. Improvements in nanomanufacturing capabilities, including solving problems related to scale-up, cost, sustainability, energy efficiency, process control and quality control. Realisation of nanomaterials with biologically inspired attributes, including non-equilibrium, selfhealing, reconfigurable, and defect-tolerant structures in hybrid organic/inorganic media. Combinatorial and computational approaches that enable efficient exploration of the vast phase space for nanocomposites, including the size, shape, and composition of the nanoconstituents, surface functionalisation and matrix. Self-healing materials, biomimetic materials and bionanomaterials have been

demonstrated but need to be transitioned to real applications (e.g. paints, implants and regenerative medicine).

77

GENNESYS Whitepaper (2009) A New European Partnership between nanomaterials science and nanotechnology and synchrotron radiation and neutron facilities, Max-Planck-Institut fr Metallforschung, Stuttgart Roco, M.C., Mirkin C.A., Hersam, M.C., (2010) Nanotechnology Research Directions for Societal Needs in 2020, Retrospective and Outlook, Springer.

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Utilisation of new nanocomposite materials with unprecedented properties and unique combinations of properties in emerging and converging technologies.

Carbon Nanotubes
Among the numerous categories in the evolving field of newly synthesised nanomaterials, carbon nanotubes (CNTs) are perhaps among the most dynamic and undergoing the most rapid pace of development. In their simplest form CNTs represent seamless cylinders of graphene film with diameters close to only one nanometre. Like most manufactured nanomaterials, CNTs exhibit uniquely different properties to other conventional materials, however, they also exhibit an unprecedented range of properties unequalled by any other manufactured nanomaterials. These properties include, among many unusual properties, exceptional mechanical strength and flexibility, high electrical and high thermal conductivity. Since their discovery in 1991, CNTs have aroused excitement in both the research community and equally in industry due to their potential for a broad range of new applications. 79 CNTs are manufactured to have a variety of structures: the simplest structure consists of a single graphene layer structure (SWNT), nanotubes within nanotubes are referred to as multiwall carbon nanotubes (MWNTs, concentric SWNTs of different diameters). Due to their dimensional differences, SWNTs and MWNTs exhibit uniquely different properties. Other forms include double-walled carbon nanotubes (DWNT) and few-walled carbon nanotubes (FWNT), which also exhibit distinctive sets of properties. The CNT-polymer composites market is by far the largest product consumer of commoditygrade MWNTs and it is predicted to expand significantly, driven by the unusual characteristics of CNTs. For most applications of CNTs, a uniform dispersion of MWNTs in the host matrix material will be especially critical. Breakthroughs in other matrix composites as well as smart network sensors are among other strong market contenders for CNT commodities. CNTs in polymer composites are expected to have a market pull in the following applications over the next decade: Aeronautical applications, driven by the need for ever-demanding fuel conservation, which can be potentially offset by lighter-weight CNT polymer composite structures. Automotive applications, driven by the increasing awareness of climate change by governments leading to alternatives for polluting fossil fuel-based power sources.

79

Oliver, J., (2010) Carbon Nanotubes: Technologies and Global Markets, BCC Research.

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Electronic packing applications, driven by the promise to solve numerous problems associated with the handling and packaging of delicate electronic components. Flame retardant applications, including in aircraft, building/construction materials, electronic packaging, and fibre optic cable cladding. Industrial seals used for military and aerospace applications, oilfield gaskets, hose and seals of all types and printer/copier fuser rolls. Sports equipment applications, driven by the need for high-strength lightweight composites.

Functional or Smart Materials


Functional materials are responsive to external environments; magnetic or electric fields, temperature, pressure or chemical. Their response can be used as a sensor or as an actuator. Functional materials include responsive hydrogels, nanocomposites and hybrids of synthetic and biological matter to highlight a few. Potential applications for nanofunctional materials include coatings, composite materials, energy related materials, nanoelectronics, sensors, catalysts and fuel cells.

Polymer Nanomaterials
Polymer nanomaterials are expected to dramatically advance as the chemical and nanoscale structures of polymers are engineered to create new polymers with a multitude of structural and functional applications, ranging from polymers with improved biodegradability to new adhesives and novel electrical conductors.

Nanocoatings
Nanocoatings have the potential for enhancing the performance and durability of an extensive array of manufacturing processes, in addition to improving the items that they produce. Numerous industry sectors globally already employ nanocoating technologies. These include transportation, textiles, energy, military and security, health care, construction, food and beverage and electronics. Further, the opportunities for nanocoating application extends to everyday living, and may have impacts on commercial products like optical nanocoated fishing tackle, silver nanocoated refrigerators, nanocoated guitar strings, and sports balls. 80 There are numerous examples of composites that form nanocoatings. Some of these include:

80

Boehm, F., (2010) Nanotechnology in Coatings and Adhesive Applications: Global Markets, BCC Research.

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Gold and silver nanoparticles with polytetrafluorethylene (PTFE), which exhibit enhanced antibacterial properties Superparamagnetic metallic nanoparticles in monomers and/or polymers which exhibit an adhesive composition Epoxy resin modified with fumed silica nanoparticles, which increases fracture toughness and inhibits crack propagation.

Metamaterials 81
A metamaterial is an arrangement of artificial structural elements, designed to achieve advantageous and unusual electromagnetic properties. It can also be described as any artificial material engineered to provide properties that might not be readily available in nature. Nanotechnology is used as a tool to develop metamaterials with improved properties and performance by controlling their nanostructure. Potential applications for metamaterials include communication systems, remote aerospace applications, sensor detection, infrastructure monitoring, nanoelectronics and solar power generation/management to name a few. The possible applications for metamaterials is varied and diverse, requiring research and collaboration from many multidisciplinary fields, including electrical engineering, solid state physics, microwave and antennae engineering,

optoelectronics, material sciences, semiconductor engineering and nanoscience.

Manufactured Nanomaterials with Applications in Nanomedicine


According to the European Science Foundation (ESF) 82 , nanomedicine is defined as the science and technology of diagnosing, treating and preventing disease and traumatic injury, of relieving pain, and of preserving and improving human health, using molecular tools and molecular knowledge of the human body. The ESF further specifies that nanomedicine has mainly five subdivisions, which can be interlinked. These include: Analytical tools Nanoimaging Manufactured nanomaterials and nanodevices Therapeutics and drug delivery systems Clinical, regulatory and toxicology issues.

81

Frost & Sullivan (2010) Metamaterials-- Technology Trends and Market Prospects. European Science Foundation (2005) An ESF European Medical Research Councils (EMRC) Forward Look report

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Nanomedicine covers a broad application spectrum that spans from diagnostics, drug development and delivery, to imaging. 83 Nanomaterials are already playing a vital role in the development of nanomedicine, with materials such as dendrimers and DNA functionalised gold nanoparticles already approved for topical HIV and diagnostic purposes. Other manufactured nanomaterial technologies in R&D for health applications include: nanoscaffolding (selfassembling nanofibres), regenerative nanoparticles, nanoengineered blood, magneto-

dendrimers and supramagnetic nanoparticles (for use in Magnetic Resonance Imaging, MRI detection), biocompatible nanomaterials and many more. 84 Novel manufactured nanomaterials are emerging that may change the future delivery of small molecule, macromolecules and nucleic-acid based therapies. These include: 85 Nanobombs: modified fullerenes used for drug delivery inside viruses, Nanoshells: hollow spheres of carbon, coated with a metallic outer layer, usually gold, used as platforms for delivery, diagnostics and medical devices. Nanotubes: graphite cylinders are only a few nanometers in diameter, used for drug delivery. Nanodentistry is the science and technology of diagnosing, treating and preventing oral and dental disease, relieving pain, and preserving and improving dental health using nanoscale structured materials. Nanomaterials have already started to have an impact in several of the dental specialities including periodontology, implantology, prosthetic dentistry, orthodontics and endodontics. The likely progression of nanoscience research in dentistry will result in the use of nanogold particles for periodontitis therapy, tooth regeneration using nanostructures, dental root implants using nanotextured surfaces, soft and hard tissue reconstruction using nanofibrous biomimetric membranes, and many more. 86

Manufactured Nanomaterials with Applications in Nanoelectronics 87


Nanoelectronics incorporate nanotechnologies, such as nanomaterials in the manufacture of electronic components and devices such as transistors, sensors, memories and display devices. Some nanomaterials that are being explored for utilisation in electronics include CNTs,

83 84

Joshi, A., (2009) Nano Enabled Products in Patient Monitoring - An Outlook, Frost & Sullivan.

Barton, C. (2007). NANOTECHNOLOGY: Revolutionizing R&D to develop smarter therapeutics and diagnostics. Business Insights. Barton, C. (2007). NANOTECHNOLOGY: Revolutionizing R&D to develop smarter therapeutics and diagnostics. Business Insights. GENNESYS Whitepaper (2009) A New European Partnership between nanomaterials science and nanotechnology and synchrotron radiation and neutron facilities, Max-Planck-Institut fr Metallforschung, Stuttgart.

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Frost & Sullivan, 2011, Opportunities for Nanotechnologies in ElectronicsTechnology Market Penetration and Roadmapping, Technical Insights.

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nanowires, nanoparticles and graphene. Other materials including quantum dots and nanocomposites are in their nascent stages of development and are expected to find widespread adoption in the longer term. The rapid increase in market demand for portable computing devices is driving the need for new and scalable low cost technology that helps achieve miniaturised components and devices. Mobile phones with growing functionalities serve as a key driver in this regard. Figure 7 highlights some of the key applications nanotechnology will have in the nanoelectronics field. Figure 7: Nanotechnology Applications in Nanoelectronics

Source: Frost & Sullivan, 2011

5.10. Nanodevices and Systems


Nanodevices are critical enablers that allow the exploitation of the technological capabilities of electronic, magnetic, mechanical and biological systems.

5.10.1. Global Demand and Applications


Global nanodevice sales are projected to grow from USD $35 million in 2010 to USD $234 million by 2015, representing a high CAGR of 45.9 per cent from 2010 through to 2015 (Table 8). Of the commercial nanodevices available, Nano-HPLC (high-powered liquid

chromatography) currently accounts for the most sales, a trend continuing into the future. Another relatively new area is Nanosensors which will continue to grow rapidly through to 2015. In addition, highly anticipated developments in the market are forecast to be the
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commercialisation of drug production and mixing systems, as well as other developmental nanodevices. 88 Table 8: Global Nanodevice Sales (Including Commercial Nanodevices), Through to 2015 (USD $ Million)
APPLICATION Nano-HPLC Nanosensors Drug production and mixing systems TOTAL COMMERCIAL Developmental TOTAL
Source: BCC Research, 2010

2009 28.0 3.0 0.0 31.0 0.0 31.0

2010 30.5 4.9 0.0 35.4 0.0 35.4

2015 47.0 20.7 16.0 83.7 150.0 233.7

CAGR% 20102015 9.0 33.4 -18.8 -45.9

In order to continue to innovate and commercialise nanodevices, research must focus on gaining a better understanding of the electronic, magnetic and photonic interactions that occur at the nanoscale.

5.10.2. Current and Emerging Developments


Nanodevices and nanosystems will have a large impact in an assorted array of applications. Currently, nanodevices are predominantly available in nano-HPLC technologies and for information technology. In the future, applications for these devices and systems will be diverse, including applications such as environmental monitoring, security and defence, industrial processes, agriculture, automotive, and very importantly, health care. 89 A number of major enabling technologies and applications are identified below.

Nanosensors
A nanosensor refers to any sensing device which is fabricated using nanomaterials, nano-sized structures and composites, or whose construction involves any intricate fabrication procedures or manipulation of material at the nano-scale. Nanosensing devices detect analytes at molecular levels and are inherently more sensitive than any other configuration of sensing platforms. Research and development work in this area has demonstrated the ability of nanostructures

88 89

BCC Research (2010). Nanotechnology: A Realistic Market Assessment Frost & Sullivan (2008) Advances in Nanosensors.

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such as carbon nanotubes, nanowires, nanobelts and quantum dots to function as sensors of various physical or biological phenomena. Carbon nanotubes (CNTs) have a relatively large surface area to size ratio, and therefore offer a greater area of contact for selected analytes to interact with the sensor platform. Because of this, CNTs enable new levels of sensing with unprecedented degrees of sensitivity. Nanowires are another high potential candidate that exhibits rapid responses with a substantially higher sensitivity and selectivity than the other conventional sensor configurations. Nanowires work by detecting small concentrations of substances by measuring changes in electrical characteristics in nanowires produced by the adsorption of the targeted specimen onto the nanowires. 90 Nanosensors will serve as the enabling technology for performing certain detection activities which cannot be adequately obtained by employing other technology configurations. Currently, nanosensors have not reached widespread commercialisation, with most R&D initiatives instigated by specific market need or social pressure. Some key future applications for nanosensor technology include: 91,92 Healthcare; nanosensors will assist in monitoring the health of patients and the general public. The agricultural industry; nanosensors will assist in monitoring the health of crops and farm animals as well as water resource management. The food industry; nanosensors will be used to monitor the levels of spoilage bacteria and other important indicators. The oil and gas sector; nanosensors will assist in allowing the high throughput detection of uncharted oil and gas reserves. Environmental safety applications which will range from sensing toxic or flammable gas, chemical detection in mining, tunnelling in heavy industry, and other hazardous areas to applications as simple as smoke detectors employed at homes and other commercial buildings. Environmental remediation applications including applications in air, soil and water remediation. Military and security use for the prompt detection of biological and chemical threats.

90 91 92

Frost & Sullivan (2008) Advances in Nanosensors. Frost & Sullivan (2008) Advances in Nanosensors.

GENNESYS Whitepaper (2009) A New European Partnership between nanomaterials science and nanotechnology and synchrotron radiation and neutron facilities, Max-Planck-Institut fr Metallforschung, Stuttgart.

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The automotive industry will look to invest in nanosensing mechanisms to enhance performance, minimise cost, and improve reliability when designing the vehicles of the future.

System of Systems
Research will focus on the engineering of new devices that can merge technologies from different science disciplines (physics, chemistry and biology) into a single sensor. This concept is often referred to as system of systems and is related to the smart dust (miniaturised sensor networks) concept. This activity will be driven by: The benefit of each technology; Their ability to communicate with other technologies (at the local stage); Their self-poweredness; and Their ability to add smartness by an adaptive and powerful signal processing, such as data fusion. Research will have applications in measurements for proteomic or genomic purposes, as well as revolutionising detection (including for high throughput screening of therapeutic compounds) and diagnosis by allowing for more rapid and more convenient highly multiplexed detection. 93

Memory
Nanoscience is emerging in the field of computer and data storage. There are many next generation storage technologies currently in the research phase, including Non-volatile Random Access Memory or NRAM, a technology that uses carbon nanotubes as the active memory element. NRAM is expected to be commercialised before 2015. 94 In the future, microelectromechanical systems (MEMS), with their unique capabilities, are expected to impact a wide range of application domains and data storage technologies. 95 Other new memory technologies will include magnetic random access memory, ferroelectric memory, nano-floatinggate devices, and phase-change chalcogenide memory. 96

93

GENNESYS Whitepaper (2009) A New European Partnership between nanomaterials science and nanotechnology and synchrotron radiation and neutron facilities, Max-Planck-Institut fr Metallforschung, Stuttgart. BCC Research (2010) 2010 Nanotechnology Research Review. Frost & Sullivan (2008) Emerging Trends in Mass Data Storage Devices.

94 95 96

GENNESYS Whitepaper (2009) A New European Partnership between nanomaterials science and nanotechnology and synchrotron radiation and neutron facilities, Max-Planck-Institut fr Metallforschung, Stuttgart.

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Spintronics / Magnetoelectronics 97
Spintronics, also known as magnetoelectronics is a discipline based on the physical phenomena encountered in electrons. Spintronic devices transfer information by the momentum of the intrinsic spin found in the electron, rather than using the electron charge as the main information carrier. The convergence of spintronics with other disciplines is forecast to enable the technology to have numerous applications, including: nonvolatile memory devices, magnetic sensors, biomolecular spintronics biosensors, organics semiconductors, and quantum information and computation. In the near term, micro and nanoscale instrumentation is one of the most promising areas for advancement and enabling effects. As optical, fluidic, chemical and biological components can be integrated with electronic logic and memory components on the same chip at a marginal cost; drug discovery, genetics research, chemical assays and chemical synthesis are all likely to be substantially affected by these advances by 2015.

Nanosystems 98
The focus of R&D and applications is expected to shift towards more complex nanosystems, new areas of relevance and fundamentally new products. The development of a library of nanostructures (particles, wire, tubes, sheets, modular assemblies) of various compositions with industrial-scale quantities is a priority, particularly for the advancement of synthetic biology. Currently, integrated nanosystems are emerging in the form of technologies such as nanorobotics and guided assembling. Molecular nanosystems such as molecular devices by design will emerge, resulting from increased complexity, transdisciplinarity and convergence of other technological fields.

Nanotechnology Geoengineering
Geoengineering, as defined by the ETC Group, 99 is the intentional, large-scale intervention in the Earths oceans, soils and/or the atmosphere with the aim of combatting climate change. This describes an array of technologies, most of which are at the conceptual and research stages with their efficacy yet to be proven. Two of the most commonly discussed categories of geoengineering technologies are carbon dioxide removal (CDR) and solar radiation

97 98

Frost & Sullivan (2011) Advances in Spintronics/Magnetoelectronics.

Roco, M.C., Mirkin C.A., Hersam, M.C., (2010) Nanotechnology Research Directions for Societal Needs in 2020, Retrospective and Outlook, Springer. Bronson, D., et al, (2009) Retooling the Planet? Climate Chaos in the Geoengineering Age, ETC Group.

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management (SRM). 100 Nanotechnology is believed to have the potential to offer certain tools which may be useful replacements or supplements to existing geoengineering techniques. Examples of emerging conceptual ideas utilising nanotechnology in geoengineering include: 101 Fertilise the ocean with iron nanoparticles to increase phytoplankton that theoretically sequester CO2 Covering snowpack or glaciers in the Arctic with insulating material or a nano-film to reflect sunlight and prevent melting Artificially reducing the amount of sunlight absorbed by the Earths atmosphere by injecting reflective engineered nanoparticles into the stratosphere 102

Nanodevice and Nanosystem Applications in Nanomedicine


Cancer therapy is an example where nanodevices have already been used. The nanodevices employed for cancer therapy include ceramic nanoparticles, dendrimers and cross linked liposomes. Currently, there is research focused on developing smart nanodevices capable of detecting the tumour cells in vivo, terminating the cells and conveying the result. There has been considerable progress in the development of synthetic multifunctional nanodevices. Dendrimers have shown immense multifunctional modularity. Several dendrimer based nanostructures are under development for treating various cancers. 103 In Australia, Starphama is a key company involved in R&D for dendrimer products for health and life science applications. 104 Drug delivery is one of the fastest growing healthcare sectors of which nanodevices are set to dramatically influence and change in the short and long term. New nanodevices can be tailored according to the desired functions and duties thanks to parallel progresses in the synthesis of colloidal systems with controlled characteristics. Nanodevices have future potential in oral, implantable, topical, pulmonary, parenteral and other routes of drug delivery. 105 Emerging technologies such as needle free injectors, and targeted drug delivery systems using carriers such as nanospheres will influence the industry.

100 101 102

Bracmort, K., et al, (2011) Geoengineering: Governance and Technology Policy, Congressional Research Service. Bronson, D., et al, (2009) Retooling the Planet? Climate Chaos in the Geoengineering Age, ETC Group.

Roco, M.C., Mirkin C.A., Hersam, M.C., (2010) Nanotechnology Research Directions for Societal Needs in 2020, Retrospective and Outlook, Springer. Findlay, S., (2008) Drug Delivery - Exploring the Nano options, Frost & Sullivan. Mullins, S. (2010), Are we willing to heed the lessons of the past? Nanomaterials and Australias Asbestos Legacy, Hull, M., & Bowman D.M. (eds), Nanotechnology Environmental Health and Safety: Risks, Regulation and Management, London: Elsevier, pp. 4969. Frost & Sullivan (2009) Opportunities in Drug Delivery: Unlocking the Doors to Macromolecules.

103 104

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Nanosensors will also play an important part of nanomedicine. The biosensing/biomedical sector is a niche market where currently nanosensor technology is primarily at the development and prototyping stage. Clinical assays and point-of-care diagnosis are among the key industries where nanosensing mechanisms have been gaining increasing popularity. Examples of clinical areas where nanosensors will be applied in the near and long-term include: the treatment of periodontitis and other oral and systemic diseases; DNA sequencing and nucleic acid detection; genomic testing; proteomics; pharmacogenomics; pathogen and virus detection; blood screening; respiratory monitoring; glucose testing and in vivo radiation monitoring. To enable the realisation of bioimplantable nanosensors, further development is required to overcome the need for omission of batteries in the sensors design. 106 The convergence of nanotechnology and biotechnology capabilities with spintronics technologies will allow for the continued development of nanoscale systems that could be introduced into the body to perform basic diagnostic functions in a minimally invasive way, providing new abilities to remedy health problems.

106

Frost & Sullivan (2008) Advances in Nanosensors.

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6.0 BIOTECHNOLOGY
Biotechnology is defined by the International Organization for Standardization (ISO) as the application of science and technology to living organisms, as well as parts, products and models thereof, to alter living or non-living materials for the production of knowledge, goods and services. 107 On a basic level, innovation in biotechnology involves the development of techniques and technologies built on knowledge of living organisms. 108 The practical applications of biotechnology can be broadly categorised as medical, industrial and agricultural, and the opportunities for biotechnology in these areas are immense and diverse. Biotechnology as an industry is more advanced than nanotechnology or synthetic biology. However, technological change in the biotechnology industry remains rapid and disruptive. In addition to the development of completely novel technologies, future innovation in biotechnology will occur through incremental change, and the scaling-up of existing lab-bench technologies to a commercial scale. Drivers, barriers and risks will play an important role in this. The ability for many biotechnology products and services to become commercially viable depends on complex interactions between regulatory frameworks, ethical considerations, environmental and health risks, and the effectiveness and sustainability of substitutes. Recent advances in molecular biology and genomics research are driving the growth of the biotechnology industry, which is currently experiencing revolutionary change. The major activities, products and services in the biotechnology industry are currently: Agricultural biotechnology research and products Biofuel research and products Bioinformatics Chemical, environmental and other research and products Diagnostics Human therapeutics Reagents and other active molecules.108 This section builds a roadmap of biotechnologies, segmented by the following areas of application: medicine, industry, and agriculture. Given that incremental change in current biotechnologies play an important role in future innovation, the roadmap describes some

107 108

International Organization for Standardization (June 2011) WEBINAR ON BIOTECHNOLOGY Terms and Definitions.

Australian Government DIISR website, accessed 31/08/2011, Hazardous Waste Management: Benefits from Biotechnology, available at http://www.innovation.gov.au/Industry/Biotechnology/IndustrialBiotechnology/

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technologies that have already been commercialised, followed by projected future developments in the area. Section 6.1 summarises the existing global market for biotechnology products, including forecasts of market growth and performance. This is followed by a discussion of opportunities, barriers, risks and disruptive potential associated with biotechnologies. Emerging tools and platforms that are common to more than one application area of biotechnology are summarised in Section 6.7, with emerging biotechnologies in medicine, industry and agriculture mapped in Section 6.8.

6.1. Biotechnology Global Market Overview


Estimates of the size of the global biotechnology market and forecasts of its future performance differ depending on how the market is defined. According to Datamonitor (2010) the global biotechnology market, consisting of the development, manufacturing and marketing of products based on advanced biotechnology research, had total revenues of approximately USD $200 billion in 2009, with a CAGR of 10 per cent for the period 2005-2009. Industry revenue growth held up well through the global financial crisis (GFC), but a small deceleration is forecast in the annualised growth rate to around 9.6 per cent for the period 20092014. 109 Table 9 provides the historical and forecast size of the biotechnology market through to 2014. In terms of geographical distribution, North and South America accounted for 48.4 per cent of the global biotechnology market in 2009, followed by Asia-Pacific with 26.4 per cent of the market, and Europe with 25.2 per cent.

109

Datamonitor (2010). Global Biotechnology

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Table 9: Global Biotechnology Market Value, 200514 (USD $ Billion)


YEAR 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 CAGR: 200509 CAGR: 200914
Source: Datamonitor, 2010

USD $ BILLION 136.4 153.7 171.8 193.2 200.9 219.1 239.5 262.1 288.2 318.4

PER CENT GROWTH 12.7 11.8 12.4 4.0 9.1 9.3 9.5 9.9 10.5 10.2 per cent 9.6 per cent

R&D spending
Although the biotechnology industry fared well through the financial crisis, many large biotechnology companies undertook drastic cost-cutting measures to survive. R&D is by far the largest expense of companies in this industry, and R&D spending across established biotechnology centres fell by 21 per cent in 2009. 110 Without a future adjustment, cuts in R&D spending may have a long term negative effect on industry performance.

Access to Funds
The total sum of funds raised by the biotechnology industry globally in 2010 was USD $25 billion, which is more or less on par with the amounts raised prior to the financial crisis. These figures can however be deceptive, as the crisis has affected the ability of emerging companies to fund innovation. Total funding in the biotechnology sector minus large debt financings by mature profitable companies, also known as innovation capital, declined by over 20 per cent in 2010.

Market Segmentation
Biotechnology products and applications are numerous and include, but are not limited to: human therapeutics, industrial biotechnology, agribiotech, diagnostics, bioinformatics, food and beverage and many more. In 2009 the medical/healthcare segment was the most lucrative in

110

Ernst & Young (2011) Beyond Borders Global Biotechnology Report.

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the global biotechnology market, with total revenues of USD $133 billion, equivalent to 66.3 per cent of the market's overall value. This is illustrated in Figure 8. 111 Figure 8: Global Biotechnology Market Segmentation

Source: Datamonitor, 2010

6.2. Drivers
It is the markets that support the uptake of new and emerging technologies that drive innovation in the biotechnology industry. Market dynamics fundamentally affect the commercial viability of emerging technologies and their uptake. Geographically, the largest biotechnology market has so far been the United States which is expected to grow at a compounded annual rate of seven per cent through to 2013. 112 Emerging markets, particularly India and China are growing in size and influence, and were less severely affected by the financial crisis than many developed economies. Asian investors are showing increased interest in the biotechnology sector, and there is an ever increasing demand for biotechnology products in prosperous Asian markets. Markets for biotechnology products are in turn influenced significantly by national government agendas. As an example, the US Navy is investing heavily in the development of biofuels as part of a green fleet policy. The global value of biofuels subsidies was USD $11 billion in 2006, and this is projected to increase to USD $50 billion in 2050. 113 The green fleet initiative also

111 112 113

Datamonitor (2010). Global Biotechnology. Ernst & Young (2011) Beyond Borders Global Biotechnology Report.

Wei, D.(2011) Next Generation Biofuels and Synthetic Biology, Foundation for International Environmental Law and Development.

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highlights energy security concerns as a driver for countries without access to sufficient petroleum fuel reserves. Favourable government regulation and availability of research funding are important drivers for biotechnology research. This is especially true for ethically contentious areas of biotechnology such as transgenic technology and embryonic stem cell research. The key trends and drivers identified in Section 3.0 have an important influence on the development of new biotechnologies. Ageing populations are driving the development of new and more personalised medical therapeutics, concerns about environmental degradation drive the need for technologies that reduce waste and pollution and population growth, especially in developing countries is driving the development of agricultural biotechnology. Genetically modified (GM) technology in agriculture promises another green revolution capable of meeting increased demand for food and reducing land use pressure. The need for sustainability and resource use efficiency is driving the development of industrial and agricultural biotechnology. Fossil fuels and other petroleum based products need to be supplemented and eventually replaced. This is a considerable challenge for the aviation industry where very few viable alternatives exist to current fuels. In agriculture, alternatives are required for current methods of irrigation and fertiliser use. Key global drivers of biotechnology are echoed in Australia. The Australian Federal Government provides grants and funding to biotechnology companies and research facilities. Changes in the structure of this funding have been blamed for slower industry growth in recent years. 114 Australian Government renewable energy targets will drive biofuel use and production, and Australias ageing population will drive demand for life enhancing and life extending drugs. 115

6.3. Opportunities
Opportunities for the application of biotechnology are both immense and diverse. The subsections below discuss these opportunities and provide examples of potential future applications and benefits in emerging tools and platforms, medical biotechnology, industrial biotechnology and agricultural biotechnology. On a fundamental level, biotechnology enables better and more targeted scientific research, and increases our understanding of basic biology. The translation and commercialisation of this research has produced novel products and technologies that have fundamentally changed the way we operate. Such products include vaccines and medical therapies synthesised using

114 115

IBISWorld Australia (2011) Biotechnology in Australia. Frost & Sullivan (2011) White Biotechnology.

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recombinant DNA technology, genetically engineered crops, and biocatalysts used in industrial processing. Emerging biotechnologies will continue to drive both evolutionary and revolutionary change, and offer solutions to some of the major national and international challenges facing Australia.

6.4. Barriers
Biotechnology is the application of technology to living organisms, and as such is subject to a justifiably large regulatory burden. This is especially true for the application of rDNA technology in agriculture and human health, where unintended consequences can potentially outweigh benefits of the technology. The regulatory burden placed on biotechnology has implications on funding requirements for research, and commercialisation both in the public and private sectors. Biotechnology in the private sector is characteristically capital intensive and high risk. The commercialisation of medical biotechnologies involves lengthy and expensive clinical trials, and success rates for new technologies are notoriously low. Access to funds is therefore a significant barrier to the development and application of biotechnology. The cost to the consumer of new and emerging biotechnologies is a major barrier for horizon 2 and horizon 3 innovations. Exciting areas of medical development such as pharmacogenomics and regenerative medicine remain prohibitively expensive. In the far term the cost of personalised medicine is expected to reduce significantly, and truly restorative medicine, although expensive will offer greater value than palliative care. Similarly industrial biotechnologies such as bioplastics and biofuels are often significantly more expensive than existing fossil fuel alternatives. As global demand for fuel increases, and fossil fuel reserves continue to be depleted, it is expected that renewable alternatives such as biofuels will become more competitive. Other key barriers in the biotechnology industry are those which affect the development of appropriate research and technology transfer capability. Competition for talent in the industry is fierce, and national governments are making significant investments in attracting the skills needed to develop and commercialise the next generation of biotechnologies. Finally, ethical issues present an important barrier for the future development of biotechnology. In many cases the science and technology is advancing faster than the ethical debate. The use of embryonic stem cells in research is an example of a particularly contentious issue. Ethical issues that may arise with the future developments in biotechnology, and the barriers that they will create are an important area for further investigation, however such a discussion is outside the scope of this report.
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6.5. Risks
The debate about the various risks associated with rDNA technology and genetically modified organisms (GMOs) has persisted since the emergence of these technologies over 30 years ago. The health and safety of consumers is the primary practical concern, followed by the ethical implications of the manipulation of living organisms.

Risks Associated with Medical Applications


As with any new therapeutic, medical biotechnology therapeutics carry the risk of unintended or poorly understood side-effects. Adverse consequences observed in gene therapy clinical trials conducted in the year 2000 have been widely publicised. 20 infants suffering from X-linked severe combined immunodeficiency disease (SCID) were treated with gene therapy, and the treatment was successful in 18 individuals. Two to five years after this seemingly successful clinical trial, T-cell lymphoproliferative syndrome developed in five of the children, one of whom died as a consequence. 116 This incidence of unintended insertional oncogenesis as a result of gene therapy highlights the potential risks of medical biotechnology. It is however important to dispassionately compare the risks of emerging medical biotechnologies with those of the existing standard of care. In the case of SCID, even with the complications described, gene therapy treatment is comparable to existing treatments. Other important risks in medical biotechnology include privacy concerns associated with the generation and use of an individuals genetic information, and ethical considerations of providing clinically actionable genetic information direct to consumers without providing expert genetic counselling. 117

Risks Associated with Agricultural and Industrial Applications


The use of GM technology in agriculture and industrial biotechnology raises concerns of the unintentional release of transgenic material into the environment. In Western Australia there is an ongoing court case in which organic farmer Steve Marsh is seeking compensation from his neighbour for the genetically modified contamination of his organic canola seed crop. 118 Other concerns relating to the use of biotechnology in agriculture include increasing dependence on seed companies by farmers, increasing corporate control of the global seed supply, and acquired resistance to insecticides and herbicides in pests. The mitigation of these risks

116 117

Kohn, D.B, and Candotti, M.D., (2009) Gene therapy fulfilling its promise, The New England Journal of Medicine.

Thomas, M. (2011) Direct to consumer (DTC) genomics has been one of the moreinteresting and contravertial developments of the genomics revolution, QTCN News and Views. Varischetti, B. (2011) WA farmer suing his neighbour over GM contamination, ABC Rural website, accessed 3/07/2011, available at: http://www.abc.net.au/rural/wa/content/2011/07/s3280309.htm .

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depends largely on the effectiveness of regulatory measures, and a thorough scientific understanding of risks involved. In industrial biotechnology, there is a risk that biofuel production will lead to an increase in competition for land use (food vs fuel). While this is true for first generation biofuels using food crops, second and third generation biofuels will make use of organic waste, feedstock grown on marginal land, and algae. In this sense it is the second and third horizon enabling technologies that are addressing risks present in existing technology. Consumer risk perceptions toward biotechnology products are an important factor in their acceptance and uptake. Perceived risks of biotechnology products are particularly high in Europe, where GM products (other than medicines) have not made it to supermarket shelves in significant numbers. 119 It is important for consumers and the public at large to have access to accurate information of both the benefits and risks of emerging biotechnologies.

6.6. Disruptive Potential


The disruptive influence of biotechnology has played out significantly already, and this trend is expected to continue into the future. Biotechnology has enabled revolutionary improvements in our understanding of basic biology, which has in turn led to the development of new products and technologies across a number of industry sectors. As highlighted, there is a current trend towards the convergence of scientific disciplines in the practical application of scientific knowledge. Examples of this convergence identified in the roadmap include nanotechnology and molecular biology converging in the development of nanopore sequencing devices. Nanoscale particles are also playing an increasingly important role in drug delivery. Similarly the convergence of stem cell technology and materials science is enabling de novo tissue generation. The application of disruptive biotechnologies will increasingly occur through significant convergence of disciplines, and as such it is difficult to determine the disruptive potential of biotechnology alone. Innovations in biotechnology, in conjunction with other emerging technologies in the areas of ICT and nanotechnology are set to revolutionise healthcare in the coming decades. Methods used for the production of pharmaceuticals have already changed significantly as a result of biotechnology, and this trend is set to continue.

119

Torgersen, H. (2004) The real and perceived risks of genetically modified organisms, EMBO reports.

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Technological changes in diagnostic and therapeutic capability necessitate fundamental changes in the delivery of healthcare. There is a current trend away from the traditional practice of intuitive medicine, towards a future of precision medicine. 120 In addition to changes the model of healthcare delivery, new and more effective therapeutics will allow clinicians to address a wider range of diseases, and provide superior patient outcomes. In agriculture, currently available technologies promise only incremental increases in yield. Disruptive agricultural biotechnologies such as GM crops have the potential to provide significant yield increases and address global food shortages. 121 This will occur in conjunction with networked and precision farming, and improvements in food packaging and storage technology. In addition to increasing yield, biotechnology will contribute to the sustainability of agriculture, and will drive changes toward more sustainable farming practices. 122 Finally, in industry, emerging biotechnologies will necessitate significant investments in new plant and equipment, and will cause changes to a myriad of existing industrial processes. Biorefineries will change the management of organic waste, and produce sustainable alternatives to petroleum-based products. Biotechnology will enable the design of safer chemicals and products, through less hazardous chemical synthesis, and will reduce pollution from industry. Sophisticated biocatalysts will replace existing reagents, and safer solvents and reaction conditions will be made possible. 123

6.7. Emerging Biotechnology Techniques


The following section describes the key emerging tools and platforms that enable the development of new biotechnologies. For each emerging tool and platform, likely future technological developments are described. Emerging Tools and platforms will affect the development and application of biotechnology over a number of industry sectors. Section 6.8 describes emerging biotechnologies by area of application: medical, industrial and agricultural biotechnology. Section 6.8.4 discusses the convergence of biotechnology with nanotechnology, enabling the novel field of nanobiotechnology.

120 121

Yellowlees, P., et al. (2011) Disruptive Innovation: The future of healthcare?, Telemedicine and e-health.

Foresight Horizon Scanning Centre, (2010) Technology Annex, Technology and Innovation Futures, Department for Business, Innovation and Skills, London. Reeves, T. G. (2003) The potential for biotechnology in sustaining agriculture, Austrialian Agronomy Conference. Tao, J. et al. (2011) Biocatalysts for Green Chemistry and Chemical Process Development, John Wiley & Sons.

122 123

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Second Generation DNA Sequencing Technologies


The ability to ascertain DNA sequence information has revolutionised our understanding of the life sciences, and has driven developments in biotechnology for the last three decades. Since its discovery, sequencing technology has advanced considerably. The Human Genome project took 10 laboratories 13 years to complete in 2003 and cost USD $3 billion. If it was started from scratch today it would take a week and cost about USD $25,000. 124 DNA sequencing remains a rapidly advancing and disruptive technology, and future developments in this area will enable progress in biotechnology and its practical applications in medicine, industry, and agriculture. For the two decades prior to 2004, DNA sequencing relied largely on variations of the first generation automated Sanger method. The advent of next generation high-throughput sequencing technology, such as massively parallel sequencers, allowed for the inexpensive production of large volumes of sequence data. Over the past decade technological advances have led to exponential decreases in the cost of genome sequencing (Figure 9). Next generation sequencing is an enabling technology with enormous disruptive potential in the biotechnology industry. 125

124 125

National Human Genome Research Institute website, accessed 11/07/2011, available at: www.genome.gov. Metzker, M. (2010) Sequencing technologies the next generation, Nature Reviews Genetics.

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Figure 9: Cost of DNA sequencing per genome 2001-2011

Source: NHGRI

The ability to rapidly and inexpensively sequence large areas of DNA has changed the way researchers think about scientific approaches in basic, applied and clinical research and clinical management. Over the next decade further advances in sequencing technology, in conjunction with the study of the omes will enable the creation of a new generation of biotechnologies, including genomic medicine, discussed in Section 6.8. Future interdisciplinary research enabled by next generation sequencing will lead to rapid improvements in disease intervention, drug discovery and treatment selection. 126

Third Generation DNA Sequencing Technologies


Further improvements in DNA sequencing technology will rely on the convergence of molecular biology, biochemistry, physics, electronics, nanotechnology and materials science engineering. In the near term it is expected that modest technological improvements in DNA sequencing technology will continue. In the longer term emerging disruptive technologies such as nanopore sequencing promise massive reductions in both the cost of full genome sequencing and the time required. DNA sequencing technology that incorporates a nanopore-based device has potential to create instruments capable of sequencing a diploid mammalian genome for approximately USD $1,000 in around 24 hours. Progress towards the goal of fast, inexpensive nanopore sequencing has

126

Branton, D., and Rothberg, J. (2010) Career snapshots: next-generation sequencing, Nature Reviews Drug Discovery.

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been both impressive and encouraging, but some significant challenges remain to be overcome. It is unclear when this technology will be commercialised. 127

Omics
Omics is a broad term for the discipline of science and engineering that analyses the interactions of biological information in the various omes; namely the genome, epigenome, transcriptome, proteome and glycomics (carbohydrates). 128 Using the enormous quantities of biological data currently being produced, the study of the omes enables improved understanding of genes and proteins, interactions and relationships between them, and the engineering of networks and objects to understand and manipulate regulatory mechanisms. Research and discoveries in omics have far reaching implications across areas of biotechnology such as drug discovery, treatment of disease, and gene technology. 129

Bioinformatics
Bioinformatics (computational biology) is the application of information sciences and technologies to make the vast, diverse and complex life science data now available more understandable and useful. 130 Developments in bioinformatics necessitate the significant convergence of disciplines such as mathematics, physics, computer science, engineering, biology and behavioural science. Following the advent of next generation sequencing technology, the largest bottleneck in whole genome sequencing is no longer data generation, but rather the computational challenges of data analysis. 131 There is a growing gap between the output of massively parallel sequencers and the ability to process and analyse the resulting data. 132 Currently the technological infrastructure needed to analyse whole genome data is available only in large genome research centres. In the next decade it is likely that this computational power will become available to individual investigators and medical practitioners. This may well occur through decentralised cloud computing solutions allowing access to significant hardware power and at a reasonable cost.

127 128 129

Branton, D. et al (2008) The potential and challenges of nanopore sequencing, Nature Reviews Biotechnology. Nature Omics Gateway website, accessed 12/07/2011, available at: www.nature.com/omics/.

Foresight Horizon Scanning Centre, (2010) Technology Annex, Technology and Innovation Futures, Department for Business, Innovation and Skills, London. Biomedical Information Science and Technology initiative website, accessed 12/07/2011, available at: www.bisti.nih.gov. Green, D. et al. (2011) Charting a course for genomic medicine from base pairs to bedside, Nature. McPherson, D. (2009) Next generation gap, Nature Methods Suppliment.

130 131 132

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Recombinant DNA Technology


Recombinant DNA (rDNA) technology is a fundamental tool in biotechnology and enables the introduction of foreign DNA into a host organism, bringing together DNA sequences that do not occur in nature. The technology can also be used to knock out genes of interest, a method used in research to examine the function of specific genes. This technology is already advanced and has been used to produce a variety of transgenic organisms from microbes to mammals. Transgenic organisms have invaluable applications in the production of medicines, enzymes and other biological compounds. In biological research transgenic animals can be used to model human disease and enable the discovery and development of human therapeutics. Future improvements in gene targeting and mutation methods will enable the construction of transgenic organisms more efficiently and effectively, with a wider range of novel traits. This will in turn drive further research discovery and allow for the production of useful compounds. In crop biotechnology (discussed in Section 6.8.3) zinc finger nuclease (ZFN) technology, currently under development, is expected to greatly accelerate the production of transgenic crop varieties. This will also allow the stacking of multiple transgenes in a single site, allowing for the commercialisation of crops with multiple transgenic traits. 133 Similar developments will occur in medical and industrial biotechnology.

Microarray Technology
DNA microarray technology is currently used as a lab-based method for profiling gene expression for a number of different genes and a given tissue type. Recent advances in microarray technology have allowed a shift from studying individual functions of several genes to global investigations of cellular activity. 134 In the near future improved microarrays will be used by researchers to better understand gene regulation, cell proliferation and disease progression. In the longer term microarrays will form part of advanced and sensitive medical diagnostics for the prescription of individually administered therapeutics.

Epigenetics
Epigenetics describes changes in the expression of genes that occur without a change in the DNA sequence itself. An epigenetic trait is one that is stably heritable and results from changes in a chromosome without alterations to the DNA sequence. Epigenetic regulation occurs

133 134

Dunwell, J. (2010) Crop biotechnology: prospects and opportunities, Journal of Agricultural Science.

Sigma Scan, 2010, Advances in DNA microarray technology, available at: http://www.sigmascan.org/Live/Issue/ViewIssue.aspx?IssueId=468&SearchMode=1.

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through a number of different molecular mechanisms, and the study of epigenetics provides a molecular basis for understanding the interaction between nature and nurture. The impact of environmental factors such as smoking, diet, physical activity and pollutants on disease pathology is thought to be mediated in part by epigenetics. 135 It has also been found that some pathogens can interfere with the epigenome of an infected cell. 136 Epigenetics is an emerging area of research, and in 2008 the US National Institutes of Health (NIH) began funding for the roadmap epigenomics project, to accelerate progress in the field. One objective of the program is to produce high resolution genome-wide maps of epigenetic modifications in different cell types. 137 This research is facilitated by aforementioned enabling technologies such as microarray, high-throughput sequencing and bioinformatics. The NIH project also aims to support the development of new technology in epigenetics such as in vivo mapping of epigenetic changes in cells, tissues and eventually whole organisms. There is also significant commercial interest in epigenetics and its ability to produce new therapeutic targets, diagnostic methods, and treatments for disease. Epigenetic research will improve general understanding of basic biological processes, disease mechanisms, and in the long term will enable the development of a new generation of therapeutics. One epigenetic mechanism with particularly promising therapeutic potential is RNA interference (RNAi).

RNA Interference
RNAi is a molecular mechanism mediated by RNA that controls the activity of genes in living cells. RNAi technology harnesses this mechanism to silence or knock down specific genes. The technology involves the use of double stranded RNA (dsRNA) molecules produced in vitro to induce a potent gene-silencing process. Other important molecules involved in this process include micro RNA (miRNA) and small interfering RNA (siRNA). RNAi is a robust and specific tool for gene knockdown. 138 RNAi technology has developed rapidly from an interesting observation to an invaluable research tool, and already has a number of practical commercial applcations. There is immense interest in the development of RNAi technology in a number of settings. In the next decade RNAi will be used to create a new generation of medical therapeutics, and in agricultural biotechnology to improve disease resistance and reduce un-desirable qualities in transgenic

135 136 137 138

Stauffer, B.L., and DeSouza, C.A. (2010) Epigenetics: an emerging player in health and disease, J. Appl Physiol. Tarakhovgsky, T. (2010) Tools and landscapes of epigenetics, Nature Immunology. NIH Roadmap Epigenomics Project website, accessed 1/08/2011, available at: www.roadmapepigenomics.com .

Nature RNA interference website, accessed 1/09/2011, available at: http://www.nature.com/focus/rnai/index.html .

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plants. Current and potential future applications of RNAi technology are discussed in more detail in Section 6.8.

Stem Cell Technologies


Stem cells are proliferative and self-renewing cells that are capable of differentiating into the array of specialised mature cells that constitute a given organ. 139 Human embryonic stem cells (hESC) are pluripotent, meaning that they can become any cell type present in the human body. In the adult, stem cells reside among differentiated cells in tissues and organs. These cells are known as adult stem cells, or somatic stem cells. Most adult stem cells are multipotent, capable of developing into mature cells of the organ or tissue in which they reside. Under specific conditions, certain adult stem cells have the ability to transdifferentiate, meaning that the cells differentiate into cell types seen in organs or tissues other than those expected from the cells' predicted lineage. 140 Induced pluripotent stem (iPS) cell technology, originally developed by Yamakana (2006) allows differentiated adult cells to be reprogrammed. iPS cells behave similarly to embryonic stem cells although epigenetic differences have been observed 141 Cells can be reprogrammed by a number of methods, many of which rely on rDNA technology and the use of viruses. Recent work however, has developed viral-free methodology to generate iPS cells for clinical applications. In this rapidly developing field, researchers are only beginning to understand the mechanism and kinetics of iPS cell reprogramming. In the next decade, the development of more efficient and effective cell reprogramming protocols, and more methods that do not require integration of transgenes, can be expected to become available. Stem cells derived either from hESC or adult tissue will revolutionise applications for improved drug discovery, better understand the biology of regeneration, and create better models to understand human disease. The improved generation and propagation of human cell types in culture will allow the development of vaccines for human/primate specific viruses, and the production of human proteins in stable human cell lines. Disease models using human cell lines will decrease the need for animal models in medical research. Clinically, stem cells can be used to replace cells lost due to pathology. Increases in our understanding of stem cell biology and manipulation will enable technological development in the following areas:

139 140 141

Singec, I., et al (2007) The leading edge of stem cell therapeutics, Annu. Rev. Med. Rishi, N. T., et al (2008) Stem cell-based therapies for spinal cord injury, Journal of Spinal Cord Medicine Lau, F. et al (2009) Induced pluripotent stem (iPS) cells: an up-to the minute review, F1000 biology reports

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Improved cell culture conditions, allowing longer-term propagation and scale-up of stem cells Improved directed cell-differentiation technology More efficient iPS cell reprogramming Efficient iPS cell reprogramming and using viral-free methods Incorporation of materials science technology (intelligent materials) for construction of organs in vitro and for transplantation/integration in the body The use of stem cells in medical therapies is discussed further in Section 6.8.1.

6.8. Biotechnology Applications


6.8.1. Medical Biotechnology
Genomic Medicine
Progress in genomics, facilitated by next generation sequencing technology and computational biology is fundamentally changing our understanding of the biology of disease. Genomic research has so far produced new insights into cancer, the molecular basis of inherited disease, and the role of genomic structural variation in disease 142 . Green et al (2011) describe an emerging era of genomic medicine; clinical care based on genomic information. This technology will have major implications for drug discovery and development, and patient management, analysis and treatment. Figure 10 below schematically represents accomplishments across five domains of genomic research, and predicts the way that research accomplishments will change over the next decade and beyond. Between 2011 and 2020 increases in our understanding of the biology of disease will enable the creation of new therapies and advanced healthcare. Future improvements in the areas of diagnostics, therapeutics, and pharmacogenomics are described as follows.

142

Green et al, (2011) Charting a course for genomic medicine from base pairs to bedside, Nature

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Figure 10: Schematic representation of accomplishments across five domains of genomics research

Source: AIC (adapted from Nature Biotechnology), 2011

Genomic Diagnostics
Over the next decade, the genes responsible for most Mendelian (monogenic) disorders will be better categorised enabling more accurate and earlier diagnoses for these disorders. Even in the absence of a treatment, improved diagnosis of disease is clinically valuable. False diagnoses and the resulting ineffective treatments will be greatly reduced, lowering the cost of healthcare. Rapid and accurate diagnosis can also provide psychological benefits to patients and their families, as described by Green et al (2011). In addition to improved diagnosis of disease, individuals that are genetically susceptible to adverse drug reactions can be identified early on. An individuals genomic information can be stored as a component of e-health records, and will assist with drug management. In the longer term, improvements in biotechnology tools mentioned in Section 6.4 will allow the measurement of cell level and organism level genotypes and phenotypes, allowing improved diagnosis, and more targeted treatment of disease.

Genomic Therapeutics
Achievements in genomic research will help to identify new targets for drug development, and this approach has already proved successful particularly for cancer drugs. In addition to human genomics, the increased knowledge of microbial pathogens will lead to improved vaccine
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design. New and improved pharmaceuticals are expected to continue to become commercially available over the next ten years. Genomic information will also allow for the improved design of clinical trials. The selection of clinical trial participants based on genomic information will enable the use of smaller numbers of participants, and increase statistical power of findings. Patients can also be targeted at appropriate stages of their illness for the trail.

Pharmacogenomics
Over the next decade Green et al (2011) expect more drug prescriptions to be guided by the individual patients genetic makeup. This practice is already commonplace for the prescription of Abacavir, an antiretroviral drug. Several other drugs such as Tamoxifen (breast cancer drug), Clopidogrel (blood clot inhibitor), and Warfarin (blood thinning agent) will be administered with genetic guidance. Cancer therapies will be increasingly selected based on genetic tumour subtypes. In the longer term, DNA, RNA and protein tests for patients may become as commonplace as traditional laboratory analysis.

RNA-based Therapeutics
Therapeutics based on RNA technology are in their infancy, and technological advances in the area show enormous potential for future drug development. There are a small number of RNAbased therapeutics currently available on the market, and many more are currently undergoing clinical trials. RNA therapeutics is predicted to become one of the fastest growing therapeutic classes in the pharmaceutical market by 2020. 143 RNAi as a therapeutic strategy has an advantage over small-molecule drugs, as virtually all genes are susceptible to targeting by siRNA molecules. 144 A major limitation of existing medicines is the ability to target only a limited number of proteins involved in disease pathways. 145 This class of therapeutic therefore holds enormous promise for expanding the possible number of druggable targets. 146 Unlike gene therapy, RNAi based therapeutics need not occur through the insertion of genetic material into the host genome. Delivery is however the most significant barrier to the widespread use of RNAi therapeutics in a clinical setting, and the development of safe and

Foresight Horizon Scanning Centre, (2010) Technology Annex, Technology and Innovation Futures, Department for Business, Innovation and Skills, London.
144 145 146

143

Czech, M. et al. (2011) RNAi-based therapeutic strategies for metabolic disease. Melnikova, I. (2007) RNA-based therapies, Nature Reviews Drug Discovery. Whitehead, K. et al (2009) Knocking down barriers: advances in siRNA delivery, Nature Reviews Drug Discovery.

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effective delivery mechanisms is essential. For example, lipid-based carriers of siRNA therapeutics that allow improved targeting of the liver are currently being assessed in clinical trials for the treatment of hypercholesterolaemia 147 . In the future it is expected that nanoparticles comprised of polymers, lipids, or conjugates will play an important role in systemic siRNA application. In addition to this, chemical modifications to siRNA molecules will help to minimise non-specific effects and evade immune defences in vivo, and tissue-specific ligands will enable better targeting.

Gene Therapy
Gene therapy is the insertion of genetic material into an individuals cells and tissues as a treatment for disease. Gene therapy builds on advances in rDNA technology, and makes use of a variety of vectors and gene transfer methods to accomplish its objective. Although the technology remains in its infancy, it has been used with some success and as of 2007 over 1340 gene therapy clinical trials had been completed. 148 Progress has been set back by unfortunate cases of serious adverse events. Despite these setbacks, gene therapy has made significant progress towards clinical efficacy. Recent high-profile clinical studies have reported success in correcting inherited forms of retinal degeneration, severe combined immunodeficiency, and adrenoleukodystrophy. 149 The majority of gene therapy clinical trials so far have been aimed at the treatment of cancer, and patients enrolled in gene therapy clinical trials have typically tried several other treatments that have failed. In the near term (horizon 1) new approaches to gene therapy and new methods of gene transfer will enable the treatment of a wider range of diseases, and more site-specific integration of genetic material. The use of RNAi technology in gene therapy is particularly promising, and this area has significant potential over horizon 2/3.

Stem Cell Therapies


Recent advances in stem cell biology promise to enable the development of a new generation of regenerative therapies. Such therapies will use stem cell and iPS cell derivatives that mimic the normal biology of cells or tissues to restore function for degenerative diseases following transplantation. 150,151 Stem cells from bone marrow have been used for over 30 years to treat

147 148 149 150

Czech, M. et al. (2011) RNAi-based therapeutic strategies for metabolic disease. Edelstein, M.L., et al. (2007) Gene therapy clinical trials worldwide to 2007 an update, The Journal of Gene Medicine. Mavilio, F. (2010) Gene Therapy: back on track, EMBO reports Foresight Horizon Scanning Centre (2010) Technology and Innovation Futures, Technology Annex

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cancer patients with conditions such as leukaemia and lymphoma, and other cell-based therapies have been launched more recently, mainly with a dermatological or orthopaedic focus. There is currently significant investment in the development of new regenerative therapies, but the widespread practical application of most of these therapies is still in the horizon 2-3 timeline. The current development pipeline of cell-based therapies is displayed in Table 10. Table 10: Current Pipeline of Cell-Based Therapies in Development
CLINICAL PHASE Phase I Phase II Phase III TOTAL
Source: Cell Stem Cell Forum, 2010

CELL-BASED THERAPIES 38 24 6 68

LARGE COMPANY-SPONSORED THERAPIES 0 3 (Teva, Baxter, Genzyme) 0 3 (5%)

Diseases that can potentially be addressed by stem cell-based therapies include cardiac disease, autoimmune disorders, endocrine/metabolic disorders, central nervous system pathology, diabetes, liver degenerative diseases, and others. Stem cell therapies hold significant promise for spinal cord injury (SCI) repair, but their true potential has not yet clearly been shown. 152 Additionally stem cell based therapies have potential applications in the repair of degenerative neurological diseases. For example, the transplantation of dopamine-producing neurons may be used to treat Parkinsons disease patients. Considerable progress has been made towards these therapies and a myriad of others, but several issues remain to be addressed before clinical application. 153 Risks such as tumour formation and abnormal circuit formation (in the case of SCI repair) must be weighed against potential benefits of the therapy. The convergence of stem cell technology and materials science is driving research into the de novo construction of complex tissues and organs. Biodegradable cell scaffolds with inbuilt growth factors can potentially be seeded with cells in vitro and later implanted into patients. Current research seeks to regenerate components of gastrointestinal, vascular, pulmonary and genitourinary systems. 154 So far proof-of-concept studies have been successful in regenerating bladder, trachea and vasculature. Biotechnology company Tengion has initiated a phase I clinical trial of a bladder regeneration platform. The product is being developed for cancer patients who require removal of a cancerous bladder, and it removes the need to use the patients own bowel in reconstruction of the urinary tract, potentially avoiding many

151 152 153 154

McKernan, R., et al. (2010) Pharmas Developing Interest in Stem Cells, Cell Stem Cell Forum Sahni, V., and Kessler, J. (2010) Stem cell therapies for spinal cord injury, Nature Reviews Neurology Kim, S.U., and de Vellis, J. (2009) Stem cell-based cell therapy in neurological diseases. Basu, J and Ludlow, J. (2010) Platform technologies for tubular organ regeneration, Trends in Biotechnology

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complications. 155 Other tissue regeneration therapies are likely to follow the bladder regeneration platform through the clinical trials process over the next 5-10 years. In addition to the replacement of cells lost due to pathology and damage, stem cells have potential applications as vehicles for the delivery of gene therapy. A major limitation of gene therapy is the inability for therapeutic molecules to be delivered to specific tissue areas. Neural stem cells particularly exhibit a remarkable ability to migrate to areas of the brain damaged by pathology. Molecules released during acute or chronic injuries have been found to be chemoattractants for neural stem cells. Genetically modified neural stem cells could potentially integrate seamlessly into the brain while continuing to express a foreign transgene, making them ideal vehicles for the delivery of therapeutic molecules for central nervous system disorders.

6.8.2. Industrial Biotechnology


Industrial biotechnology (IB), also known as white biotechnology, is the use of biological processes, systems and substances to produce and process materials and chemicals. 156,157 On a fundamental level, IB is the application of life science tools to conventional manufacturing and industry, resulting in new and improved methods to make industrial raw materials, intermediate and consumer goods or to manage waste. The applications of IB are developed and adopted across a wide range of industrial markets, including minerals and fuel, energy, chemicals, food and feed, textiles, and pulp and paper. 158 The economic and social benefits of IB include greater manufacturing efficiency and lower production costs, less industrial pollution and resource conservation. Industrial biotechnology is an emerging industry, and growth is driven by technological development. The emergence of new industrial biotechnologies is enabled by developments in other areas of life sciences such as genomics. The global IB market was valued at USD $75.79 billion in 2010. 159 Major market segments of industrial biotechnology are categorised below, including 2010 revenue from each segment: Biofuels USD $39.69 billion

155 156

Tengion website, accessed 02/09/2011, available at: www.tengion.com

Foresight Horizon Scanning Centre, (2010) Technology Annex, Technology and Innovation Futures, Department for Business, Innovation and Skills, London.
157

UK Department for Business Enterprise and Regulatory Reform (2009) Maximising UK Opportunities from Industrial Biotechnology in a Low Carbon Economy. IBISWorld Australia (2011) Biotechnology in Australia. Frost & Sullivan (2011) White Biotechnology.

158 159

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Pharmaceutical ingredients USD $22.06 billion Food and feed USD $9.27 billion Enzymes USD $4.32 billion Bioplastics USD $0.24 billion Personal care ingredients USD $0.23 billion. The following section builds a roadmap of key emerging technologies in industrial biotechnology.

Biofuels
Biofuels are liquid and gaseous fuels derived from organic matter, and they have the potential to supplement and eventually replace petroleum based fuels for many applications. Biofuels promise to reduce carbon emissions, and minimise the economic and political volatility surrounding fossil fuel reserves. Large scale investment in the commercial production of biofuels began in the 1970s, driven by desire to reduce carbon dioxide emissions in the transport sector and improve energy security. Uptake of biofuels without government support is dependent on the relative cost of fossil fuels, and the rising cost of crude oil is a major driver for biofuel production. The fastest growth in biofuel production has occurred over the last decade, and in 2010, the total quantity of biofuels produced was over 100 billion litres. 160 This production is supported by various government policies, typically tax incentives, subsidies and blending mandates defining the proportion of biofuel to be used in transport fuel. The annual global value of biofuel subsidies was USD $11 billion in 2006, and is set to rise to USD $50 billion in 2050. 161 In a recent technology roadmap of biofuels for transport, the International Energy Agency (IEA) envision that by 2050 biofuels will comprise 27 per cent of total world transport fuel consumed. To achieve this vision, the IEA estimate that around 100 million hectares of land will be required to produce biofuel feedstock in 2050. Given the rapidly growing demand for food and fibre, competition for land poses a significant challenge to this vision. The inflation of food prices as a direct result of biofuel production presents a significant risk. The abatement of this risk relies on increased use of residues and waste in biofuel production, along with sustainably grown energy crops.

160 161

International Energy Agency (2011) Biofuels for Transport, Technology Roadmap

Wei, D. (2011) Next Generation Biofuels and Synthetic Biology, Foundation for International Environmental Law and Development

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New and emerging biofuel technologies will improve and encourage the production of biofuels from waste, residues and feedstock grown on marginal land, rather than food crops as is currently the case. The use of advanced biotechnology in biofuels production is becoming increasingly important; biocatalysts are used during processing of biomass; algae biofuels will use genetically engineered microalgae; and GM plant species can produce specialised biofuel feedstock. A risk presented by emerging biofuel technologies is the potential for invasive plant species and GM organisms used as feedstock to cause unintended environmental damage. Development and propagation of biofuel feedstock will require careful regulation. Biofuel technology can be classified into a number of generations of technological development: First generation - conventional biofuels are those manufactured from sugar, starch and vegetable oil, derived primarily from food crops. The majority of biofuels that are currently produced in commercial quantities fall into this category. Second generation - advanced biofuels are those manufactured from non-food crops and lignocellulose wastes. The manufacturing process requires enzymatic digestion and fermentation. Third generation - algae biofuels are sometimes referred to as third generation biofuel and are manufactured from photosynthetic algae. The following section describes areas of technological development for each of these biofuel categories. Figure 11 summarises the current commercialisation status of a number of biofuel technologies. The advanced biofuels category combines second generation biofuels and algae biofuels, and is currently an area of significant technological innovation and development.

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Figure 11: Commercialisation Status of Biofuel Technologies for Transport

Source: IEA, 2011

First Generation Biofuels


The first generation conventional biofuels are those manufactured from sugar, starch and vegetable oil, derived primarily from food crops. For example, as of July 2011, researchers in Queensland were preparing a bid to provide the US Navy with biofuels for ships and planes by 2020. 162 Sugar and starch based ethanol Bioethanol is produced by the fermentation of food crops such as sugarcane, sugar beet and sweet sorghum. Bioethanol can also be produced from starch crops, but this requires an additional processing step: the hydrolosis of starch into glucose. The cost of bioethanol produced using these methods is closely related to the relevant feedstock prices. Conventional Biodiesel Conventional biodiesel is produced from raw vegetable oils and animal fats, which are transesterified using an alcohol. Oils are typically derived from soybean, oil palm and sunflower, and the overall price of the resulting product is sensitive to feedstock prices.

Queensland Government, The Queensland Cabinet and Ministerial Directory website, accessed 31/08/2011, available at: http://www.cabinet.qld.gov.au/MMS/StatementDisplaySingle.aspx?id=75429 .

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Biogas Biogas can be produced by the anaerobic digestion of biodegradable material, typically organic waste, animal manure, and sewerage sludge. Biogas can be used for cooking, heating, electricity generation, and to power motor vehicles.

Second Generation Biofuels


Second generation, or advanced biofuels are those manufactured from non-food crops and lignocellulose wastes (sustainable feedstocks). The manufacturing process requires enzymatic digestion and fermentation. This is an area of significant technological development.163 Cellulosic ethanol Bioethanol can be produced from lignocellulosic feed stocks such as wood, grasses, and nonedible plant material. This technology has the potential to reduce land use competition, as feedstock can be grown on marginal land. This process requires biochemical conversion of the biomass feedstock into fermentable sugars, which then follow the same process as conventional bioethanol. Powerful cellulase enzymes are used in this process, and genetically engineered microbes are being developed to assist in this process. Advanced Biodiesel Advanced biodiesel has properties very similar to diesel and kerosene, and can be combined with fossil fuels in any proportion. There are several processes currently under development for producing advanced biodiesel, and these are outlined below: Hydrotreated Vegetable Oil Hydrotreated vegetable oil (HVO) is produced by hydrogenating vegetable oils or animal fats. Compared to conventional biodiesel, hydrogenated oils perform better at lower temperatures, have no storage stability problems, and are not susceptible to microbial attack. Large scale HVO production plants exist in Finland and Singapore, but the process has not yet been fully commercialised. Biomass-to-liquids A number of novel biofuel conversion routes have recently been announced in recent years (below). So far none of these processes have been demonstrated on a commercial scale: Conversion of sugar into alkanes using heterotrophic algae, yeast and cyanobacteria. Alkanes are basic hydrocarbons used for gasoline, diesel and jet fuel.

163

Bringezu S., et al (2009) Assessing Biofuels, United National Environment Programme (UNEP), International Panel for Sustainable Resource Management,

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Transformation of water-soluble sugars into hydrogen using aqueous phase reforming, and then into alkanes via a catalytic process. The use of GM yeast to convert sugars into hydrocarbons and eventually synthetic diesel. Bio-synthetic gas Biomethane can be derived from solid biomass via thermal processes (partial combustion). There is currently a demonstration plant producing biomethane from solid biomass in Austria, and another plant is planned in Sweden. Natural gas vehicles can be run on biomethane derived from gasification of biomass or anaerobic digestion. Other fuels and additives A number of other biofuels and fuel-additives are currently in different stages of commercialisation. Pyrolosis oil: The rapid heating (400-600C) and cooling of biomass, also known as fast pyrolysis, produces a liquid product suitable for long distance transport. The oil is then processed in ways similar to crude oil. Hydrothermal processing: Biomass can be processed in a liquid media and subjected to high temperature and pressure. The result is a bio crude product similar to pyrolosis oil. Dimethylether (DME): DME can be produced by catalytic dehydration of biomass or gasification of biomass feedstock. Production of DME from biomass gasification is in the demonstration stage, and DME has potential uses in diesel engines or as a substitute for propane in liquefied natural gas (LNG). Biobutanol: Sugars can be fermented using the acetone-butanol-ethanol process to yield biobutanol which can be used in internal combustion engines. Demonstration plants exist in Germany and the US, with others under construction.

Third Generation Biofuels


Biofuels produced from an algae feedstock are sometimes referred to as the third generation of biofuel technology. This method of biofuel production has already received significant attention from the research community, and production is expected to expand considerably over the next decade. The most promising algae biofuels are high quality diesel and jet fuel analogues, as few alternatives exist to replace these fuels. Algae can be grown on marginal land and in water that is otherwise unsuitable for crops and food production, making bio-oils using algae less polluting and potentially more efficient than converting vegetable oils or animal fats into biofuel. Furthermore, through its capacity to consume carbon dioxide, algae offers the added benefit of mitigating greenhouse gas emissions.
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Currently the cultivation of algae and subsequent processing to extract oil is prohibitively expensive, and large scale commercialisation of this technology depends on the ability to produce high volumes of low cost biofuels. Significant R&D challenges remain, and rDNA technology has potential applications in the optimisation of algae strains. Biotechnology improvements will need to go hand in hand with improvements in photobioreactor design, and other aspects of scaling up production. Figure 12 below presents a roadmap for the commercialisation of biofuel technology. Frost & Sullivan (2010) predict that algal biofuels will become commercialised on an industrial scale by the end of 2018, following the implementation of pilot projects and demonstrations, and a number of small commercial scale projects. Technological developments expected in algal biofuel production in the next decade include the following: 164 Genetically modified organisms and improved algal strain selection: This will allow for increased lipid content of algae, improved photosynthesis, and increased tolerance of algae to contamination by invasive natural strains. Improved harvesting and drying technologies. Improved delivery and use of nutrients and CO2. Figure 12: Algae Biofuels Market: Technology Roadmap (world) 2010-2030

Source: Frost & Sullivan, 2010

164

Frost & Sullivan (2011) White biotechnology

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Biorefineries
Biorefining is defined as the sustainable processing of biomass into a spectrum of marketable products and energy. Biorefineries are the facilities and plants that are used to convert biomass resources into energy (biofuels/power/heat) and value-added products (chemicals/materials). 165 Conceptually, biorefineries are similar to conventional oil refineries, which produce multiple fuels and products from petroleum. Large biorefineries will be vital in achieving the economies of scale needed for the commercially viable production of biofuels. Biorefineries will allow for a more efficient use of resources than current biofuel production units, and will reduce competition among different sources of biomass. The production of high-value co-products (such as dried distillers grains with solubles and fructose) along with energy, is an essential part of the biorefinery business model. 166 There are two main categories of biorefineries; those which focus on creating energy (including biofuel plants), and those which focus on producing food, feed, chemicals and other materials, and might create power or heat as a co-product. Key drivers for the development and implementation of biorefineries are the growth in demand for energy, fuels, and chemicals, and the ongoing price increases of fossil resources. Over the next decade we can expect an increase in the amount of very large scale bioprocessing, and increasingly sophisticated biofuel refining technology. Future biorefineries will play a major role in the replacement of some chemicals and materials traditionally produced from petroleum.

Bioplastics
Bioplastics are plastics derived from renewable biological materials rather than petrochemicals. Emerging technological developments in bioplastics will improve product quality, reduce production cost, and create a more viable substitute to traditional plastic materials. Future technological development will produce bioplastics with novel properties and improved functionality, such as flame retardant bioplastics and biodegradable plastics suitable for use in food packaging. 167

Biocatalysts
As a direct result of the revolution in genomics, an enormous number of previously unknown enzymes are becoming available for use in industrial processes. Enzyme-catalysed processes are generally more efficient than conventional chemical processes, as fewer steps are involved

165

IEA Bioenergy (2009) IEA Bioenergy task 42 on biorefineries: Co-production of fuels, chemicals, power, and materials from biomass International Energy Agency (2011) Biofuels for Transport, Technology Roadmap

166 167

Foresight Horizon Scanning Centre, (2010) Technology Annex, Technology and Innovation Futures, Department for Business, Innovation and Skills, London.

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and input yields are higher. Over the coming decade the discovery of novel biocatalysts will drive improvements in a variety of industrial processes. Biocatalysts are typically manufactured using transgenic organisms that secrete the catalyst, requiring only renewable inputs, namely sugars and amino acids. In the near term, the increasing range of bioenzymes available will enable safer and more efficient industrial processes. Biocatalysts are highly selective, and can carry out difficult chemical reactions with fewer synthesis steps, eliminating waste in multistep reactions. Biocatalysts also usually use water as a solvent, eliminating the production of organic solvent waste, and enabling safer and less hazardous chemical and product synthesis. 168 In addition to this, biocatalysts are biodegradable, some are even edible, and their production requires only renewable feedstock. Broadly, biocatalysts are driving a trend towards more efficient and environmentally friendly manufacturing processes.

Leveraging Fossil Fuels


Coal, natural gas and petroleum are currently responsible for 67 per cent of global electricity production. A current area of focus for biotechnology and synthetic biology is leveraging large global reserves of hydrocarbons, such as oil, gas, shale, and oil sands with biology tools. Coal bed methane, for example, is a globally available source of natural gas. Its reserves are vast and largely untapped. Biotechnology and synthetic biology research is underway to harvest this methane through microbial digestion and other processes. Biohydrometallurgy is an interdisciplinary field involving processes that make use of microbes (usually bacteria and archaea) that take place in aqueous environments and deal with metal production and treatment. In biohydrometallurgy, microbes are used as geological agents by mining and water treatment industries in order to find new approaches and technologies to: Process ores and concentrates Remediate waste waters Recover and recycle metals.

6.8.3. Agricultural Biotechnology


The following section details emerging innovations in the application of biotechnology to agriculture. Technologies are segmented by their application in crop production, animal production, and aquaculture. Biotechnology already plays an important role in the agricultural

168

Tao, J. et al. (2011) Biocatalysts for Green Chemistry and Chemical Process Development, John Wiley & Sons

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and food industry, and promises to enable better and more efficient use of raw materials and byproducts, and improve food security and safety. 169

Crop Biotechnology
The use of transgenic or GM crops in agriculture has already developed far beyond the lab bench. Commercialisation of crop biotechnology began in 1996, and by 2009 there were almost 134 million hectares of genetically engineered crops being cultivated in 25 countries (Figure 13). 170 There is however a significant number of novel genetically engineered crops currently under development. Over the next 10 years, increases in the understanding of fundamental plant biology and the application of GM technology will facilitate the development of a new generation of transgenic crops. 171 Figure 13: Global area of biotechnology crops, 1996 to 2009 (million hectares)

Source: ISAAA, 2009

A recent review by Dunwell (2010) describes important areas of crop biotechnology that are likely to be exploited over the medium term, and outlines a commercial development pipeline of transgenic crops until 2020. 172 Crop biotechnology has the potential to enable the adaption of existing food crops to rising temperatures, decreasing water availability, rising salinity, and

Foresight Horizon Scanning Centre, (2010) Technology Annex, Technology and Innovation Futures, Department for Business, Innovation and Skills, London.
170

169

James, C., (2009) Global Status of Commercialised Biotech/GM Crops, The International Service for the Acquisition of Agribiotech Applications (ISAAA). Ronald, P. (2011) Plant Genetics, Sustainable Agriculture, and Global Food Security, Genetics Dunwell, J. (2010) Crop biotechnology: prospects and opportunities, Journal of Agricultural Science

171 172

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changing pathogen and insect threats. GM technology will also have important applications in the production of feedstock for the biofuel industry. Up to this point, crop biotechnology has focused on creating herbicide tolerant and insect resistant transgenic plants. Over the next decade we can expect a significant diversification of the number of crop traits available. The following are some of the emerging applications of crop biotechnology identified by Dunwell (2010).

Water Use Efficiency


The limited availability of water is the single most important factor that reduces crop yields, with far reaching socio-economic implications. GM crops with improved water-use efficiency have the potential to greatly improve global agricultural yields. The most advanced drought-tolerant crop under development is drought-tolerant maize, expected to be released in the US in 2012, and in Sub-Saharan Africa in 2017. Currently in Australia, GM wheat and GM barley lines are being tested with a variety of genes enhancing tolerance to abiotic stress.

Nitrogen Utilisation
Due to the increasing costs of nitrogen fertilisers, and the prevalence of environmental pollution by reactive nitrogen, the improved management of nitrogen in agricultural production is of vital importance. There are a number of transgenic crops currently in development that express genes affecting nitrogen uptake and transport. Researchers have already produced a GM rice variety that overexpresses alanine aminotransferase under a tissue specific promoter, leading to a strong nitrogen use efficiency phenotype. 173 The focus of ongoing research is to identify genes that play a role in the nitrogen-use-efficient phenotype. Development of transgenic crops in this area is set to continue, with the longer term possibility of enabling bacteria mediated acquisition of atmospheric nitrogen in non-legumes. However, as atmospheric nitrogen acquisition is a complex process involving a number of different metabolic pathways, developments in this area will likely occur only in the far term.

173

Beatty, P., et al. (2009) Transcriptome analysis of nitrogen-efficient rice over-expressing alanine aminotransferase, Plant Biotechnology Journal

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Acidic Soils
Soil acidity is the most serious land degradation issue affecting agriculture in Australia, and is a major obstacle for sustainable food production worldwide. Aluminium toxicity is primary among the factors that reduce plant growth on acid soils, and Aluminium is generally harmless in pH neutral soils. One transgenic approach is the secretion of organic acids by plant roots that are able to detoxify aluminium ions. 174

Improving Tolerance/Resistance to Pests and Diseases


Pest and disease resistance has been a major focus of crop biotechnology so far. The first generation of transgenic crops includes plants that secrete insecticidal proteins found in Bacillus thuringiensis (or Bt). Over the next 10 years there are a number of technological developments expected in this area. A number of virus-resistant transgenic crops have already been developed, including virus resistant squash and papaya currently being cultivated in the US. 175 RNAi technology has significant potential to confer virus resistance, and was demonstrated in a laboratory setting in 2009. Biotechnology may also be able to increase the natural defences of plants against pests and insects. Many plants, when attacked by herbivorous insects, emit volatile compounds that attract natural enemies of those insects. The manipulation of these biological processes has so far been demonstrated in a laboratory setting, but is yet to be commercialised. Future transgenic plants will express interfering RNA that is targeted specifically against insect pests. RNAi also has potential applications in the targeted reduction of natural toxins and allergens in food plants. RNAi technology could be used to silence toxin and allergen producing genes for targeted plant varieties.

Product Quality Traits


Although the first genetically modified crop approved for sale in the US was the Flavr Savr tomato, which had a longer shelf life, product quality traits have received little attention until recently. Over the next 10 years crop product quality traits will become increasingly important. An example of a recent development is a transgenic soybean crop developed by DuPont that was approved for commercial use by the US Department of Agriculture in 2010. The transgenic

174

Liu, J., et al. (2009) Aluminium-activated citrate and malate transporters from the MATE and ALMT families function independently to confer Arabidopsis aluminium tolerance, Plant Journal

Foresight Horizon Scanning Centre, (2010) Technology Annex, Technology and Innovation Futures, Department for Business, Innovation and Skills, London.

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soybeans have modified oil quality, completely removing trans-fats and incorporating omega-3 fatty acids for use in yogurt, granola bars and spreads. Identification of genes and corresponding biological pathways involved in the production of micronutrients are enabling the development of GM crops with nutritional enhancements. Rice crops have been engineered to synthesize provitamin A carotenoids. 176 This technology has the potential to address nutritional deficiencies in the developing world. There is also potential for future crops to produce high value compounds for the pharmaceutical industry. This has so far been demonstrated in a research setting with the production of human pro-insulin in a safflower (Carthamus tinctorius) for the treatment of diabetes mellitus, and carrot cells producing the enzyme glucocerebrosidase, used for the treatment of Gauchers disease.

Biofuel-Optimised Crops
A number of companies are currently developing and marketing biofuel-optimised feedstock. Syngenta has developed a GM maize variety with thermostable amylase enzyme that breaks down starch rapidly. Monsanto has developed a maize variety with higher starch content for ethanol production, and the company is developing new switchgrass (Pancium virgatum) varieties with higher yield. Further development of biofuel-optimised GM feedstock will help to reduce pressures associated with using food crops for biofuel production. 177

GM Phytoremediation
Phytoremediation is the use of plants to decontaminate soil and water, and genetic engineering is a powerful tool for enhancing the natural phytoremediation capabilities of plants. A number of transgenic plants have been produced for phytoremediation with promising results, but none have yet been successfully commercialised. 178 Current transgenic approaches include enhancing the tolerance of plants to contaminants, and enhancing the ability of plants to accumulate and volatilise contaminants. For plants that produce seeds and fruit there is a risk that phytoremediation could introduce toxins into the food chain. Contaminated plant material could however be used to produce energy and biofuels, providing sustainable post-harvest management options.

176 177 178

Beyer, P. (2010) Golden Rice and Golden crops for human nutrition, New Biotechnology Dunwell, J. (2010) Crop biotechnology: prospects and opportunities, Journal of Agricultural Science Maestri, E., and Marmiroli, N. (2011) Transgenic Plants for Phytoremediation, International Journal of Phytoremediation

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Other Areas for Future Plant Improvement


Other areas for possible genetic improvement in plants in the mid to long term include: Control of flowering Improvements in photosynthetic efficiency Analysis and exploitation of heterosis (hybrid vigour)

Forecasting the Commercial Pipeline of GM crops


Stein and Rodriguez-Cezero (2010) predict that by 2015 there could be over 120 different transgenic events in commercialised GM crops worldwide, compared to the 30 GM events in commercially cultivated GM crops in 2008. The estimates of future GM crops available segmented by crop type are displayed in Figure 14. The current crops dominating the GM landscape (soybeans, maize, cotton, and canola) will continue to do so in 2015. 179 Figure 14: Current numbers and estimates of future numbers of GM crops worldwide

Notes: Base year for estimates is 2008 Source: Nature Biotechnology, 2010

Stein and Rodriguez-Cezero (2010) developed a commercial pipeline of GM crop traits, and differentiated between six categories according to the crops' proximity to market.

179

Stein, A., and Rodriguez-Cezero, E. (2010) International trade and the global pipeline of new GM crops, Nature Biotechnology

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Figure 15: The pipeline of GM crops from early R&D to commercialisation

Earlier R&D Stages

Advanced R&D

Regulatory Pipeline

Commercial Pipeline

Commercial GM Crops

Other GM Crops

Source: AIC (Adapted from Nature Biotechnology), 2010

The categories of commercialisation are displayed in Figure 15 and are as follows: Earlier R&D: initial research on a new GM crop is being carried out, but there are no concrete plans for their commercialisation yet, or e.g. the GM event that is finally to be used in the crops is not yet selected. Advanced R&D: the GM events are not yet in the regulatory process but their developers plan their actual commercialisation and the events are at late stages of their development. Regulatory pipeline: in at least one country worldwide the GM events are already submitted by their developers for authorisation for commercial use. Commercial pipeline: in at least one country worldwide the GM events are authorised but no crops are marketed yet. Commercial GM crops: in at least one country worldwide the underlying GM events are authorised and the corresponding crops are currently marketed. Other GM crops: the GM events are authorised in at least one country worldwide but they were never commercialised or they were commercialised once but then phased out afterwards. The commercial pipeline is displayed in Table 11, segmented by trait category. It is expected that product quality traits will be developed slowly, with only 18 quality innovations between 2009 and 2015, out of a total of 91 new GM crops in the same period.

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Table 11: Numbers of current and possible numbers of expected GM traits worldwide
TRAIT CATEGORY COMMERCIAL IN 2008 COMMERCIAL PIPELINE REGULATORY PIPELINE ADVANCED DEVELOPMENT TOTAL BY 2015

Insect resistance Herbicide tolerance Product quality Virus resistance Abiotic stress tolerance Other
Source: Nature Biotechnology, 2010

21 11 2 5 0 0

2 5 1 0 0 0

11 4 5 2 1 2

25 13 12 3 6 11

59 33 20 10 7 13

Animal Production Biotechnology


Demand for animal protein will continue to grow over the next 20 years, and the use of sophisticated animal genetics and even transgenic technology will help to achieve the increases in productivity required. Biotechnologies used in animal production have already led to significant productivity improvements. Artificial insemination combined with cryopreservation facilitates widespread genetic improvement of livestock, and animal health biotechnologies have improved disease diagnosis, control and treatment. 180 In addition to manipulation of the animals themselves, recombinant bacteria have been developed to produce specific enzymes or hormones that improve nutrient utilisation in livestock. Through the use of enabling technologies such as genome sequencing and bioinformatics, the current generation of agricultural researchers will develop a far better understanding of the genetics of animal production. Selection for animal breeding will in turn be based on genomewide selection, and a far wider variety of traits than currently possible. Selection of animals based on molecular markers rather than phenotypic traits is discussed further under the heading Marker Assisted Selection. Biotechnology will also allow the agricultural industry to maximise the welfare of animals, maximise the efficiency of energy use in the generation of animal protein, minimise loss due to disease and stress, and maximise the number of offspring produced per female. 181 The technology to create transgenic animals has existed for over 30 years. However, rDNA technology does not play a significant role in agricultural livestock production. This is due to a

180 181

FAO website, accessed 27/09/2011, available at: http://www.fao.org/biotech/sectoral-overviews/biotech-livestock/en/

Hume, D. A. et al. (2011) The future of animal production: improving productivity and sustainability, Journal of Agricultural Science.

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lack of public research funding in the area, a lack of public acceptance of the technology, and a lack of clear benefits to the consumer. 182 The focus of research into transgenic livestock has shifted from the initial goal of modifying animal growth properties, to modification of milk properties and induction of disease resistance. Research examples also exist of transgenic livestock that offer human health and environmental benefits. The use of rDNA technology in animal production agriculture will become more viable over the far term, and will remain subject to significant regulatory barriers. Marker Assisted Selection Marker assisted selection (MAS) combines recent technological advances in genetics and genomics with phenotypic-pedigree-based plant and animal breeding practices. Rather than selecting animals and plants for phenotypic traits, an indirect process is used where selection is based on molecular markers linked to traits of interests. This enables a selection process based on genotype (rather than phenotype), and is particularly useful for traits that are hard to measure, exhibit low heritability, and/or are expressed late in development. In the agriculture and forestry sectors there has been significant investment in the construction of molecular marker maps for a wide range of species. However, MAS has not yet delivered the expected benefits in commercial breeding programs for crops, livestock, forest trees or farmed fish. 183 The potential applications of MAS are numerous, but considerably more work is still required to realise the full potential of this technology. High throughput genotyping techniques using next generation DNA sequencing technology may lead to a wealth of information that can be exploited for genetic improvement of plants and animals. Advances in molecular genetic technology will also enable cheaper, faster, and more targeted plant and animal selection. Until the nature of complex genetic traits is better understood, MAS will be limited to genes of moderate to large effect, and phenotype will continue to play an important role in plant and animal selection.

Aquaculture Biotechnology
Similar to the use of biotechnology in livestock production, genetic and genomic enabling technologies have the potential to facilitate more targeted improvement programs in aquaculture across a wider range of species than previously possible. 184 Transgenic fish have been

182 183

UN Food and Agriculture Organisation (2007) Marker Assisted Selection, Current status and future prospectives in crops, livestock, forestry and fish. McAndrew, B., and Napier, J. (2010) Application of genetics and genomics to aquaculture development: current and future directions, Journal of Agricultural Science.

184

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engineered to show a 5-30 fold increase in growth during the first year of age, but due to a range of practical constraints transgenic fish are unlikely to become a commercial reality in the near term. Genomic studies are currently underway to identify genes for improved growth and disease resistance. 185

6.8.4. Biotechnology and Nanotechnology Convergence


The convergence of nanotechnology and biotechnology has resulted in the development of a number of products and technologies loosely defined as nanobiotechnology. Many nanotechnologies identified in Sections 5.8 to 5.10 can also be classified as nanobiotechology, including many aspects of nanomedicine. 186 Nanobiotechnology convergence is quite common, as nanotechnology is often applied to living organisms, and biotechnology often requires manipulation on a nanoscale. Techniques in biotechnology such as third generation DNA sequencing technology discussed in Section 6.4 may incorporate nanopores through which individual DNA molecules pass. Similarly nanoscale structures can be produced through the self-assembly of biological molecules like DNA. Applications for nanobiotechnology are numerous and include drug delivery, biological imaging and diagnostics, sequencing, microbicide and research tools. Market segments can be broadly classified as medical, diagnostic and tools, of which medical applications are the most common. Popular nanomaterials used in nanobiotechnology include polymer structures, liposomes, nanocrystals, nanoparticles, quantum dots, dendrimers and nanopores. These materials comprised the majority of the nanobiotechnology market value in 2010, with polymer structures holding the leading market share with a value of USD $11 billion in 2010. Medicine is a particularly important area for this convergence, particularly in drug delivery. Nanotechnologies enable better drug solubility, thus providing many benefits to the patient, including better efficacy, increased compliance, a higher level of safety, targeted delivery and greater convenience. Drug delivery is a commercially important application for nanomaterials. As a result, there is a large commercial market for nano-delivered drugs, including drugs for the treatment of cancer, infectious disease and lipid disorders. Table 12 provides an overview of the nanobiotechnology industry, highlighting different types of nanomaterials used to meet the specific customer needs in that market segment.

185

Foresight Horizon Scanning Centre, (2010) Technology Annex, Technology and Innovation Futures, Department for Business, Innovation and Skills, London. BCC Research (2011) Nanobiotechnology: Applications and Global Markets.

186

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Table 12: Nanobiotechnology Industry


NANOMATERIAL DRUG DELIVERY DIAGNOSTICS
MRI, lateral flow and genomics assays

R&D TOOLS

MICROBICIDE

SEQUENCING

Nanoparticles

Albumin drugs

Imaging assays

Wound dressings

Quantum Dots
Liposomal vaccines, drugs

Small animal diagnostics

Imaging assays

Imaging for second generation

Liposomes Dendrimers Nanopores Nanocrystals Polymer Structures

Transfection assays Cardiac diagnostics Transfection assays Biochips Condom gels

Third generation

Nanocrystal drugs Transfection assays

Pegylated and micelle-based drugs Source: BCC Research, 2011

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7.0 SYNTHETIC BIOLOGY


Synthetic biology is a form of advanced biotechnology. It combines elements of biology, engineering, genetics, chemistry, and computer science. 187 In the same manner that chemistry transitioned from studying natural chemicals to designing and building new chemicals, synthetic biology can be viewed as an extension and application of biotechnology. The first recognised use of the term synthetic biology occurred in 1974 by the Polish geneticist Waclaw Szybalski, writing: 188 Up to now we are working on the descriptive phase of molecular biology. ... But the real challenge will start when we enter the synthetic biology phase of research in our field. We will then devise new control elements and add these new modules to the existing genomes or build up wholly new genomes. This would be a field with the unlimited expansion potential and hardly any limitations Synthetic biology uses biochemical processes, molecules, and structures in novel and potentially useful ways through the modification of biological systems and the design and construction of biological systems not specifically found in nature. A feature of synthetic biology which distinguishes it from conventional genetic engineering is its focus on developing foundational techniques and technologies that make the engineering of biology easier and more reliable in the future. Through the creation of biological systems that do not occur naturally, synthetic biology allows scientists and engineers to re-engineer existing biological systems. More ambitious goals include creating entirely new biological systems from non-living materials. 189 With new tools and concepts, synthetic biology has the potential to refine and extend metabolic and genetic engineering, and for developing off the shelf components to bring an end to lengthy biotechnology projects. 190 Complementary to the creation of new biological systems, synthetic biology also provides a new way of studying living systems to find out how they work and therefore increasing the base level

187 188 189 190

Parens, E., etal., (2009) Ethical Issues in Synthetic Biology, Woodrow Wilson International Centre for Scholars. Parens, E., etal., (2009) Ethical Issues in Synthetic Biology, Woodrow Wilson International Centre for Scholars. European Academies Science Advisory Council (2011) Synthetic Biology: An Introduction. OECD, The Royal Society (2010) Symposium on Opportunities and Challenges in the Emerging Field of Synthetic Biology.

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of scientific knowledge across a large number of fields. By making systems that are far simpler than those found in nature, synthetic systems allow researchers to perform experiments that would otherwise be difficult to carry out and perhaps impossible to interpret. Synthetic biology has the potential to reduce our reliance on fossil fuels, transform medical care and human health, assist with issues associated with climate change and the environment and improve food security. Another argument is that creating products through synthetic systems may be safer than merely trying to manipulate naturally occurring systems to produce them. Conversely, critics cite concerns about playing God and disrespecting the meaning of life, the potential threats to biodiversity and natural species, and threatening longstanding concepts of nature.

General Concepts of Synthetic Biology


The two generally recognised approaches to synthetic biology are Bottom-up and Top-down. Bottom-up seeks to create novel biochemical systems and organisms from scratch. Top-down uses existing organisms, genes, enzymes, and other biological materials as parts or tools to be reconfigured. At a technical level, synthetic biology can be subdivided into broad classifications according to the approach they take to the problem at hand: 191 Photocell design includes projects to make self-replicating systems from entirely synthetic components. Biomolecular-design refers to the general idea of the de novo design and combination of biomolecular components. Biomolecular engineering includes approaches which aim to create a toolkit of functional units that can be introduced to present new orthogonal functions in living cells. Genome engineering includes approaches to construct synthetic chromosomes for whole or minimal organisms (the minimum amount of components to maintain functionality).

7.1. Synthetic Biology Global Market Overview


The global market for synthetic biology was valued at USD $0.6 billion in 2010, and is forecast to reach USD $4.5 billion by 2015, registering a CAGR of 53.4 per cent over the period 20062015. In 2009, the largest and fastest growing end-user segment of synthetic biology was

191

Parens, E., etal., (2009) Ethical Issues in Synthetic Biology, Woodrow Wilson International Centre for Scholars.

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energy and chemicals, accounting for close to 39 per cent of global sales, and assuming sales figures of close to USD $150 million. Table 13 and Figure 16 highlight the global sales for each of three different end user segments: energy and
192

chemicals,

biotechnology

and

pharmaceuticals, and R&D, from 2006 through to 2015.

Table 13: Market Analysis for Synthetic Biology by End-Use Sector (Annual Sales Figures in USD $ Million)
END-USE SECTOR
Energy & Chemicals Biotechnology & Pharmaceuticals Research & Development TOTAL

2006 21.43 37.68 37.21 96.32

2007 47.25 52.18 52.24 151.67

2008 85.47 83.58 76.85 245.90

2009 149.90 129.42 107.64 386.96

2010 260.12 194.35 144.81 599.28

2011 446.50 283.28 187.44

2012

2013

2014

2015

% CAGR 74.67 42.72 28.38 53.37

752.17 1250.48 2038.41 3243.72 400.53 231.13 550.45 273.15 726.70 314.23 925.74 352.41

917.22 1383.83 2074.08 3079.34 4521.87

Source: Global Industry Analysts, 2010

Figure 16: Market Analysis for Synthetic Biology by End-Use Sector (Annual Sales Figures in USD $ Million)

Source: Global Industry Analysts, 2010

192

Global Industry Analysts (2010), Synthetic Biology.

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7.2. Drivers
Estimates have placed the annual synthetic biology research market at USD $600 million, with the potential to exceed USD $4.5 billion over the next decade. As an example of its growing importance, it is estimated that 20 per cent of the global chemical industry (currently worth USD $1.8 trillion) could be dependent on synthetic biology in one form or another by 2015. The market is driven by the following industrial sectors: 193 High tech companies (biotechnology, nanotechnology and software) are providing new tools to transform, measure and exploit the biological world, in an attempt to develop genetic information as a commodity. Pharmaceutical, chemical and energy companies are partnering with the new bioentrepreneurs to improve their production processes and feedstock sourcing. Financial services companies and investment banks are drawing up new ecosystem securities, trading markets and land investments. Consumer products and food companies are turning to bio-based products, packaging and ingredients to make green marketing claims. At a research and technology development level, synthetic biology is driven by previous work and advancements in genetic engineering, biotechnology, nanotechnology and the fundamental disciplines of engineering, information technology and chemistry. The hope of addressing shortcomings in these existing methods is also driving advancements in synthetic biology. The relationship of these disciplines to synthetic biology is discussed in detail below. Complicating the definition of synthetic biology is that it is often considered a natural extension of genetic engineering, which in turn is increasingly converging with nano and information technologies. Therefore, synthetic biology is currently being driven by limitations in these existing fields of work. Synthetic biology is differentiated from previous work in molecular biology through its emphasis on standardised parts, computers and automation. However, as knowledge from the synthetic biology industry develops, learnings will increasingly be applied to companion fields like nanotechnology and biomedical imaging. 194 In order to ensure synthetic biology reaches its full potential, whilst addressing the various concerns listed above, investments would need to focus on not only foundation technologies

193 194

ETC Group, (2010) The New Biomasters, Synthetic Biology and the Next Assault on Biodiversity and Livelihood. Parens, E., et al., (2009) Ethical Issues in Synthetic Biology, Woodrow Wilson International Centre for Scholars.

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and science, but also education and policy to ensure a safe and efficient development of the synthetic biology industry. 195

7.3. Opportunities
The opportunities associated directly, and as a flow on effect, from developments in synthetic biology are immense, as evidenced by the scale and scope of applications discussed in Section 7.7. Potential benefits can be divided into two broad categories: advancing basic scientific knowledge and creating new products. 196 The creation of new products could include breakthroughs in clean energy and biofuels, pollution control and remediation, agriculture and food, medicine and health, and biosensors. Developments in these fields have the potential to change our lives and our shared environment.

7.3.1. Advancing Scientific Knowledge and Understanding


As well as the technical opportunities, synthetic biology can contribute to advancing general scientific knowledge and understanding. For example, synthetic biology is being used to better answer basic questions about the natural world and to explain complex biological processes about how DNA, cells, organisms and biological systems function. Scientists hope that synthetic biology will allow for biological hypotheses to be tested more rigorously. By engineering or reengineering living organisms, synthetic biologists will be able to understand how the biological world works in areas where earlier analytical approaches fell short.

Genome Engineering
Genome engineering is defined as the extensive and intentional genetic modification of a replicating system for a specific purpose. Effectively, genome engineering is the use of currently available genetic engineering technology on a genomic scale. As the capacity of researchers to synthesise, manipulate and analyse DNA constructs increases at an exponential scale, de novo genome engineering moves closer to a practical reality. 197 Significant challenges remain to be overcome to realise the potential of this technology, particularly a need for more tools and platforms at all stages. In the same way that current rDNA technology allows the manipulation of organisms to produce novel compounds, such as the synthesis of human insulin in bacterial cells, genome

195 196

European Academies Science Advisory Council (2011) Synthetic Biology: An Introduction.

Gutmann, A., (2010) New Directions, The Ethics of Synthetic Biology and Emerging Technologies, Presidential Commission for the Study of Bioethical Issues.
197

Carr, P, and Church G. (2009) Genome Engineering, Nature Biotechnology

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engineering will allow unprecedented levels of genetic customisation. Researchers are currently working to develop a cellular chassis, a stripped down organism capable of more stable and efficient production of medicines, biofuels, and other compounds. Other potential applications include the harnessing of microbes as biosensors to identify threats, and for use in bioremediation. Although applications of genome engineering are promising, they remain largely unproven, and lie in horizon 2 and 3. Minimal Genomes Synthetic biology is being used to define the minimum number of genetic instructions (genes) needed for an organism to survive. This is an important area of research as it is hoped that it can reveal which genes are essential to life and those that are not. This is being done by synthetic biologists by progressively eliminating genes in bacteria and assessing the effects. Using this knowledge it may be possible to design and build cell factories, the output of which will depend on what additional genes are added to the minimal set required simply to sustain the organisms existence. A full knowledge of which genes are essential to do what also helps the bioengineer to create new and specialised organisms by eliminating unwanted genes, but also to build novel organisms from scratch. This will allow bioengineers to simplify their synthetic-bio systems and potentially reduce development time of such products. Regulatory Circuits The natural activity of cells is controlled by circuits of genes similar to electronic circuits. Therefore, in order for synthetic biologists to alter the behaviour of cells, they need to create novel internal circuitry to alter the pattern of cells activity. This research is building the knowledge of genetic components required to develop molecular switches and thus build artificial gene networks. Linked together and implanted into natural systems, such networks could be used to control those systems. A possible application is using an artificial network to sense and correct metabolic disturbances such as those found in diabetes.

7.4. Barriers
Various barriers and challenges exist for the synthetic biology sector. However, since this is still an emerging area of research, many of these barriers are rapidly being overcome as progress and breakthroughs accelerate. The main barriers to advancement in the area of synthetic biology are logistical barriers, such as a lack of tools and platforms, and the ethical issues associated with manipulation of the biological world.

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Scalability from Laboratory Trials


The major issue facing synthetic biology today is the scalability of synthetic biology tools being developed. Currently, synthetic biology works on a very small scale, but in order to be commercialised large amounts of product will need to be produced, especially for biofuels. 198 This issue and others mean that the promise of synthetic biology will continue to be questioned since many of the more complex technologies may be a decade or more away.

Underestimated Complexity
Naturally occurring biological systems are more complex and difficult to manipulate than anyone imagined 10 or 20 years ago. 199 Building a single cell from parts in the laboratory is a vastly different challenge than building an organism that interacts effectively and predictably in nature. Current research is proving that the design of synthetic and artificial organisms to survive in nature is a far greater challenge than previously anticipated. It is extremely difficult to anticipate with confidence how a synthetic organism will react to and interact with the natural environment. As discussed above, complexity and variation reflect the fact that DNA alone is not sufficient to create the biological functions necessary for the creation of products from synthetic biology. Nature has proven that DNA can only function if it exists within an environment that provides the cellular components. How any specific DNA sequence functions in a cell is also dependent on secondary modifications in its structure or folding pattern that can promote or inhibit the transcription of genes. Much is still unknown regarding the interactions between and within cells (natural or synthetic) as well as their interactions with the environments. Also unknown is how synthetic biological systems evolve. Researches are currently trying to address the fact that in most cases, engineered biological systems quickly revert to wild type by evolving to lose their engineered function rather than gain a new one. Another critical limitation in synthetic biology is the time and effort expended during fabrication of engineered genetic sequences. To speed up the cycle of design, fabrication, testing and redesign, synthetic biology requires more rapid and reliable de novo DNA synthesis and assembly of fragments of DNA. This is commonly referred to as gene synthesis. 200

198 199

European Academies Science Advisory Council (2011) Synthetic Biology: An Introduction.

Gutmann, A., (2010) New Directions, The Ethics of Synthetic Biology and Emerging Technologies, Presidential Commission for the Study of Bioethical Issues.
200

Parens, E., et al., (2009) Ethical Issues in Synthetic Biology, Woodrow Wilson International Centre for Scholars.

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A Gap between Tools and Applications


A barrier for the synthetic biology field to achieve its full potential is the gap between applications, tools and techniques. Bridging this gap is an important step for ensuring the growth of the field, but still represents a significant challenge. The major challenges include: Invention and implementation of engineering design principles into biology is critical to effective tool development and thus for the field to move forward more applications. However, the culture of biological research traditionally rewards novelty and does not equally celebrate engineering contributions. Enhancing the engineering part of synthetic biology is becoming increasingly important. Going from the conceptual design of a function using synthetic biology to a genetic sequence that fully implements the function represents a significant technical challenge. From a technology development point of view, it is important to develop computer-aided design tools which support the design and programming of devices and their implementation into systems. These types of tools are either not currently developed or not accessible enough. To address scalability, large libraries of refined parts need to be set up. The challenge lies in creating these libraries and getting them to a critical mass of information. The library could include many different classes of molecules such as: metabolites for those working on biosynthesis; disease biomarkers for those working on biomedical research; and exogenous chemicals for those working on agricultural biotechnology. Applications are generally narrowly directed to the end product and not towards developing a technology base to broadly support many different products. Investing in or integrating new tools and technologies is often not a priority when they do not directly lead to a specific product.

Ethical Debates
In addition to the ethical concerns about physical harm resulting from developments in synthetic biology, ethical concerns also deal with the risk of nonphysical harm. The concerns about nonphysical harm focuses on fairness, equality, progress and the appropriate relationship of humans to themselves and the natural world. When discussing ethical issues associated with synthetic biology, it is important to recognise that different people and cultures adopt different ethical frameworks. Furthermore, it is important to recognise the societal consequences that

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may impact globally as a result of only a small number of societies developing synthetic biology. 201 For instance, among the many concerns about the patenting and commercialisation of advances in synthetic biology is the contested view about who should control and have access to these inventions. Following on from this debate is who should gain from these inventions. Conversely, others argue views about the appropriateness of owning patents on living organisms. Furthermore, concerns exist as to humans overreaching when new organisms are created and the associated debate about what is our proper role in the natural world. Learning from the developments in other emerging fields of science, ethical concerns are too often addressed only after investments have been made and technologies are already commercialised. Other fields of science have shown that at that point, neither the research community or policymakers have a strong incentive to address ethical issues for fear that any debate may stifle technological advance and innovation. For this reason, several commentators have recommended the early adoption of a range of modes for anticipating and shaping the social and ethical implications of these technologies as they emerge. 202

7.5. Risks
Despite the potential benefits of synthetic biology discussed above and in Section 7.7, the technology also raises concerns about risks to human health, the environment and biosecurity. Some of these potential harms include unanticipated adverse human health effects, negative environmental effects from field release and dual-use concerns when research undertaken for legitimate scientific purpose may be misused to pose a biologic threat to public health and/or national security. Some commentators also cite possible negative economic impacts in developing countries where naturally occurring commodities may be devalued if synthetic production occurs elsewhere. In general, risks surrounding synthetic biology can be divided into two broad categories: physical and nonphysical harms. While the risk of physical harm often triggers debates about how to proceed among researchers, policymakers, and the public, the risk of nonphysical harm

201 202

Parens, E., et al., (2009) Ethical Issues in Synthetic Biology, Woodrow Wilson International Centre for Scholars. Danish Council of Ethics 2011 Synthetic Biology: a discussion paper Danish Council of Ethics May 2011

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presents more difficult challenges. Nonphysical concerns range from equitable distribution of benefits to ethical arguments about humans place in the natural world. 203 For both physical and nonphysical reasons, many in the synthetic biology community believe that it is important to develop governance systems to allow innovation in synthetic biology to reach its full potential. The following sections discuss some of the risks associated with various synthetic biology applications in renewable energy, health, agriculture, food, environmental, biosecurity, and dual use. With such large expectations put on these area of synthetic biology, there is also a potential risk that benefits will not live up to expectations.

Risks Associated with Renewable Energy Applications


Synthetic biology offers many potential methods to improve energy production and reduce costs as is demonstrated in Section 7.7. A full assessment of these promising activities requires specific attention to the current limitations, challenges, and anticipated risks, because renewable energy applications may be the first synthetic biology products to come to market. The most widely discussed concern for the development of synthetic biology technologies is the accidental contamination or intentional release of synthetic organisms. Since synthetic biology has the potential to produce products that are capable of self-assembly, self-repair and reproduction, they pose a much greater threat than synthetically produced chemicals, which generally have well-defined and predictable qualities. Concerns centre on the possibility of an unmanaged release that could lead to undesired cross-breeding with other organisms, uncontrolled proliferation, crowding out of existing species, and threats to biodiversity. Countering these risks is that many of the tools being developed through synthetic biology include strategies to remediate such risks. Examples include engineering terminator genes or suicide switches that can be inserted into organisms, preventing them from reproducing or surviving outside of a laboratory or other controlled setting. Furthermore, researchers may uniquely tag the genetic code of new organisms that they develop. This tagging process may provide an additional and effective tracking system when trying to address such issues. Flow-on effects from the development of better biomass, feedstock and biofuel production techniques is the potential harm to ecosystems from the required dedication of land and other natural resources to allow these developments to be commercialised. This has the potential to affect food production, communities, and current ecosystems. Some of these issues are already

203

Parens, E., et al., (2009) Ethical Issues in Synthetic Biology, Woodrow Wilson International Centre for Scholars.

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being realised through the increasing demand on ethanol and the increased amounts of feedstock required for biofuel production. This trend is driving developments in synthetic biology which are aiming to address these issues.

Risks Associated with Medical Applications


Biomedical applications of synthetic biology raise potential risks for humans and the environment similar to those identified for renewable energy applications. Human health risks may arise from adverse effects of intentional or inadvertent release of the organisms engineered using synthetic biology. Novel organisms developed with synthetic biology to treat illness may trigger unanticipated adverse effects in patients. The use of cell therapies of bacterial or mixed microbial origin may cause infections or unexpected immune responses. New organisms developed with synthetic biology may pose risks resulting from their potential as biological organisms to reproduce or evolve. As with energy applications, researchers in synthetic biology are looking to counter these threats in the process of developing these new products. This includes Biological isolation, which is also termed biosafety engineering that aims to build in molecular brakes or seatbelts that restrain growth or replication of partially or fully synthetic organisms.

Risks Associated with Agricultural, Food, and Environmental Applications


Synthetic biology applications in the context of agriculture, food, and the environment raise concerns broadly similar to those raised above with respect to safety, resource management, and biodiversity. In brief, these risks include harms to humans, plants, or animals from: Uncontrolled environmental escape or release and attendant disruption to ecosystems, New or sturdier pests (animal or plant) that may be difficult to control, and Increased pesticide resistance and growth of invasive species. Synthetic biologys critics worry that creating new organisms that have uncertain or unpredictable functions, interactions, and properties could affect ecosystems and other species in unknown and adverse ways. The associated risks of escape and contamination may be extremely difficult to assess in advance, as such novel entities may have neither an evolutionary or ecological history. Countering these concerns is the observation that synthetic cells and systems show a tendency to evolve toward non-functionality. With respect to environmental applications and bioremediation, expectations were placed on genetic engineering for bioremediation purposes in the mid-1980s. Although many issues (such
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as robustness and scalability) arise when putting modified bacteria in a contaminated environment, bacteria currently being developed in laboratories are not scalable or robust enough to survive in the natural environment. 204

Biosecurity and Biosafety


The term biosecurity refers to a strategic and integrated approach to analyse and manage risks in food safety, animal and plant life and health, and biosafety. It provides a policy and regulatory framework to improve coordination and take advantage of the synergies that exist across sectors, helping to enhance protection of human, animal and plant life and health, and facilitate trade.205 In this field, considerable time is being spent on evaluating the biosecurity risks of synthetic biology products and practices. In this respect, there is a clear consensus among scientists and policymakers that biosecurity risks are serious and warrant ongoing and proactive reexamination as technical capacity evolves. Consequently, the role of synthetic biology in expanding general scientific knowledge will allow scientists to address risks with an enhanced level of understanding. It may be difficult to assess the risks of synthetic organisms since there may be no natural equivalent from which to draw comparisons or expected behaviour and evolution. For those based on natural pathogens or with pathogenic mechanisms, associated risks may be easier to assess. However risks become uncertain when considering synthetic organisms as selfsustaining and able to evolve.206 A further complication is that the release of a synthetic organism would not necessarily be accidental. At some point in their development, a synthetically produced organism may need to be proven in a commercial capacity. To perform its task, a novel microbe would have to be released freely into a particular environment or situation. Scientists contemplating any such action would have to set an exceptionally high threshold of certainty or risk mitigation strategies to control such tests. A potential risk to biosecurity is that synthetic biology products and techniques may become increasingly accessible to other industries. Easy access to DNA sequences will see the techniques of molecular biology being adopted by those that have little experience with

204 205

European Academies Science Advisory Council (2011) Synthetic Biology: An Introduction.

Food and Agriculture Organization of the United Nations, available at: http://www.fao.org/ag/agn/agns/foodcontrol_biosecurity_en.asp
206

ETC Group, (2010) The New Biomasters, Synthetic Biology and the Next Assault on Biodiversity and Livelihood

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biological agents. It will be important to ensure that all newcomers to the bioscience community understand the risks involved. Dual Use Concerns about dual use or intentional misuse of synthetic biology to do harm are among the most prominent critiques of this emerging technology. One of the most widely voiced risks attributed to synthetic biology is that it may be used to intentionally create harmful organisms for bioterrorism. For these reasons, biosecurity and biosafety regulations and process will be of utmost importance moving forward and also ensuring that regulations and processes are continually updated to remain current with industry and research practises. Frequently lost in these discussions is recognition that DNA alone is not sufficient to create an independently functioning biological entity. Mere knowledge of a viral genome is far from sufficient to be able to re-constitute or create a disease forming pathogen. Rather, one must have an appropriate host and conditions for a virus to grow, issues that leading scientists have not even solved (it is not yet possible to craft functioning biological organisms from synthesised genomic material alone). Addressing Risks Associated with Biosecurity and Biosafety Principles to be taken into account for a code of conduct to minimise misuse include: An awareness of the potential consequences of research and a refusal to undertake work that can have only harmful consequences An adherence to good laboratory working practices Knowledge of and support for national and international laws and policies to prevent the misuse of research An acceptance of the duty to report any activity that violates codes such as the Biological and Toxins Weapons Convention 207 . The National Science Advisory Board for Biosecurity (NSABB) in the US made three recommendations to ensure biosecurity in the field of synthetic biology: 208 Synthetic biology should be subject to institutional review and oversight since some aspects of this field pose biosecurity risks. Oversight of dual use research should extend beyond the boundaries of life sciences and academia.

207 208

Information available at: http://www.opbw.org/ National Science Advisory Board for Biosecurity (2010), Addressing Biosecurity Concerns Related to Synthetic Biology

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Outreach and education strategies should be developed that address dual use research issues and engage the research communities that are most likely to undertake work under the umbrella of synthetic biology.

7.6. Disruptive Potential


Whilst still a young field of research, synthetic biology has already made several considerable breakthroughs and therefore is an area of enormous strategic and economic significance, representing an arena in which scientific knowledge will be progressively embedded in many, if not all technological solutions in the future. The diversity of potential solutions for biofuels, renewable energy, medicine and health, the environment, agriculture and food, and generally advancing scientific knowledge (particularly nanotechnology) shows the potential of this emerging field of technology. When assessing the disruptive potential of synthetic biology, it must be remembered that research into synthetic biology is still only a decade old. The first department of synthetic biology at a major research institution, The US Lawrence Berkeley National Laboratory, was opened in 2003. 209 To explain the potential of synthetic biology, Figure 17 from the US Department of Agriculture shows the current stage of development for synthetic biology compared with existing technologies. Currently, the true potential of synthetic biology is difficult to grasp (particularly for members of the public) as its benefits are wide ranging and a quantum leap from current technologies and processes. Comparing synthetic biology directly to biotechnology, Figure 17 also shows that synthetic biology has advanced to such a point where the potential to advance rDNA technology is expected to progress rapidly through the use of synthetic biology. This will drive and accelerate the development of products and opportunities addressed in this report and even opportunities that have not yet been identified.

209

Rejeski, D., (2011) Synthetic Biology A Trip Around the Neighbourhood, U.S Department of Agriculture.

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Figure 17: Synthetic Biology, Disruptive Potential

Source: U.S Department of Agriculture, January 2011

7.7. Synthetic Biology Applications


The field of synthetic biology is still young and our understanding of complexity and variation in natural and synthetic parts and systems is far from complete. The technical tools and skills required for large-scale production of products incorporating synthetic biology components still need to be developed. That said, whilst most of the outputs of synthetic biology remain in early stages of development (horizon 3), some applications are expected to come to market within a few years (horizon 2). Success in these research efforts will attract investment and yield new jobs as novel products are developed. As the required skills and technical tools are developed, the acceleration of breakthroughs in synthetic biology is likely to dramatically increase.

7.7.1. Renewable Energy Applications


Biomass and Biofuels
The development of nanotechnology and synthetic biology means that biomass can now be targeted by industry as a source of living green carbon to supplement or partially replace fossil carbons of oil, coal and gas. Industrial sectors that are beginning to switch carbon feedstock to biomass include energy and chemical, plastics, food, textiles, pharmaceuticals, paper products and building supplies industries. Synthetic biology promises to expand the commercial possibilities for biomass from the current, relatively low-tech burning biomass for electricity production, to an ability to create custom
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organisms to act as living factories into horizons 2 and 3. It has been suggested that synthetically manufactured microorganisms in fermentation vats will one day be capable of transforming biomass into a wide range of custom chemicals, plastics, fuels, pharmaceuticals and other high value compounds. 210

Biofuels
Many in the synthetic biology community predict that biofuel products will be the first synthetic biology products to market. Following initial breakthroughs in the industry, synthetic biology may accelerate the development of second generation biofuels that can be prepared from agricultural waste and plant residues, thus avoiding competition with crops grown for food. 211 The potential of synthetic biology to advance the biofuels industry is closely linked with advancements in biotechnology. Synthetic biology offers the opportunity to greatly increase efficiency and yields of the production of some biofuels. These synthetic biology processes are expected to be available commercially within the next few years. Synthetic biologists aim to improve the speed and efficiency of converting biomass into advanced, second or third generation biofuels with cleaner and more favourable energy-usage profiles. One such approach is to create super-fermenting yeast and bacteria through synthetic biology. Synthetic biology may also offer new biomass sources, or feedstock that is more efficient, reliable, low cost and scalable than current sources. These include forest and agriculture residues, grasses, algae, oilseeds, and potentially sewage. Another major focus has been to examine the potential for using synthetic or modified organisms to generate ethanol from plant matter. Several companies are researching industrial applications to produce biofuels using bioengineered organisms. They speculate that these fuels could be on the market within five years. 212

Bioalcohols
Further to biotechnology based studies into bioalcohols such as butanol, current synthetic biology is investigating an easy way to manipulate bacterium E. coli to improve this bacterial biochemical reaction to make butanol more industrially useful.

210 211 212

A NEST Pathfinder Initiative, (2007)Synthetic Biology. Rejeski, D., (2011) Synthetic Biology A Trip Around the Neighbourhood, U.S Department of Agriculture. Parliamentary Office of Science and Technology (2008) Synthetic Biology.

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Photosynthetic Algae
Breakthroughs in biotechnology are occurring in various forms of algae based products. From a synthetic biology perspective, investigations are currently focusing on the engineering of algal cells to secrete oil continuously through their cell walls and thereby increase yield. This timesaving step may support large-scale industrial operations where quick turnaround times are required.

Hydrogen Fuel
Hydrogen fuel is an area of focus for commercial applications of synthetic biology as a clean, efficient process for extracting hydrogen from water. Hydrogen is highly desirable as a fuel source because it is clean-burning and only produces water as a by-product. Hydrogen also has the second highest energy density per unit of weight of any known fuel. Hydrogen is currently produced by converting it from natural gas using steam. Natural gas techniques are costly, inefficient, and reliant on fossil fuels. Synthetic processes for the production of bio-hydrogen is being explored and expected to cost significantly less while providing higher yields. However, research remains in the early development phase. Several possible routes to generate bio-hydrogen are using engineered E. coli as a host organism to produce hydrogen in addition to other biofuels and using engineered algae as a feedstock. Finally, and perhaps most promisingly, researchers are investigating ways to produce high yields of hydrogen using starch and water via a synthetic enzymatic pathway. This is particularly attractive, as it may enable sugar to be converted into hydrogen fuel inside a vehicle itself. This would mitigate the problem of storage, as hydrogen takes up large amounts of space at regular atmospheric pressure and compression of the gas requires energy and makes storage difficult and dangerous.

Medical and Pharmaceutical Applications


Synthetic biology has the opportunity to advance human health in a variety of ways. Synthetic biology builds on the history of genetic engineering technology, used for more than three decades in medicine, to engineer bacteria with the ability to produce commercially relevant molecules like insulin and vaccines for hepatitis B virus and human papillomavirus. Potential improvements in the medical discipline include improved production of drugs and vaccines, advanced mechanisms for personalised medicine, and novel, programmable drugs and devices for prevention and healing.

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While the benefits of synthetic biology to health care may prove monumental, significant hurdles remain. Most of the anticipated health benefits of synthetic biology remain in the preliminary research stage, or horizon 2-3. We are unlikely to see commercial applications from much of the bio-medically oriented synthetic biology research for many years, although the pace of discovery is unpredictable.

Pharmaceuticals
Synthetic biologists have refined a chemical technique called metabolic engineering to enhance the production of medicines. This process involves altering an organisms metabolic pathways (the series of chemical reactions that enable the organism to function at the cellular or organism level) to better understand and manage how they work. Scientists can redesign these pathways to produce novel products or augment the production of current pharmaceuticals. Synthetic biology can also be used to engineer molecules and cells that express proteins or pathways responsible for human disease. In the future, these products may be used in large-scale screening methods to identify novel drugs for disease treatment or prevention.

Vaccines
The first step in the development of a vaccine is the identification of the virus strain, including its unique genetic code, against which the vaccine will be used. Synthetic biology tools, including rapid, inexpensive DNA sequencing combined with computer modelling, may streamline production time by accelerating this initial step. In this respect, synthetic biology techniques are being used to accelerate the development of vaccines. DNA-based vaccines created on-thespot to match actual, circulating viral genetic material may be a more efficient process for producing vaccine seed stock in the future. To assist in this process, one industry group is developing a database of synthetically created seed viruses for influenza vaccines that it hopes will enable more rapid vaccine production by reducing virus identification time. 213

Personalised Medicine
Synthetic biology offers useful strategies for advancing personalised medicine by applying the science of genomics to develop individually tailored, and thereby more effective, approaches to disease prevention and health care. Many current cancer treatments focus on non-selective cell killing or on delivery to specific tissues. Synthetic biology studies are providing a growing body

Presidential Commission for the Study of Bioethical Issues (2010) New Directions, The Ethics of Synthetic Biology and Emerging Technologies

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of knowledge supporting molecular classification of tumours. This may facilitate the development of specifically designed detection devices matched to individual tumours. Custom protein and biological circuit design through synthetic biology practises may eventually enable the delivery of smart proteins or programmed cells that self-assemble at disease sites. Similarly, synthetic organisms could be developed to create a trigger to deliver or withhold treatment depending upon a local disease environment (such as low levels of oxygen). A synthetic biology approach currently under study is a cancer treatment that focuses on up to six cellular identifiers rather than one, effectively enabling the treatment to be targeted more carefully and precisely toward the cells intended to be killed, while sparing healthy ones. These and other novel approaches to tailored disease treatment may substantially improve outcomes and reduce the costs and burden of disease across the population.

Biosensors
Synthetic biology also has a part to play in developing novel and more efficient biosensors to be used in tackling complex diseases. Biosensors could be used to collect quantitative dynamic data in minimally invasive ways and to a much greater sensitivity than current mechanical sensor technology. Biosensors also have various other applications such as detecting viruses, bacteria, hormones, drugs, DNA sequences, toxins and warfare agents. 214 Biosensors are currently being developed and used in a limited capacity, however they are expected to be widely available into horizons 2 and 3.

7.7.2. Applications in the Food Industry


Agriculture
The use of rDNA technology, cloning, and other biotechnology tools have enhanced the manipulation of crops and breed animals for specific purposes and enhanced agricultural outcomes. Expanding on the use of biotechnology in this sector, synthetic biologists are developing high-yield and disease-resistant plant feedstock that can be supplemented with efficient and environmentally friendly microorganisms to minimise water use and replace chemical fertilisers.

Food Security
Synthetic biology may help to mitigate threats to global food supply. Synthetic biology work in this field is still in the early stages compared with other areas of research such as energy and

214

Parens, E., et al., (2009) Ethical Issues in Synthetic Biology, Woodrow Wilson International Centre for Scholars.

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health, but R&D in this field is well underway. Examples of synthetic biology projects focused on food security are discussed below. Glycyrrhizin Glycyrrhizin is the sweet compound found in liquorice root that is 150-300 times sweeter than table sugar and is widely used as a natural sweetener and in natural medicine. Liquorice root is in high demand, with supplies almost exclusively limited to wild indigenous species of the liquorice plant found in arid regions of China, Siberia, Mongolia, and Japan. Researchers have identified and synthesised all the genes responsible for producing glycyrrhizin. According to researchers, it should now be possible to use synthetic biology to induce a soy plant or a microbe such as yeast to produce glycyrrhizin allowing the production process to be moved away from the countries listed above. This approach to creating difficult to produce food stocks can be applied to many food products to improve global food security. Palm Oil The oil palm genome is currently being decoded by a Malaysian palm oil conglomerate in an attempt to replace it in foods such as mayonnaises and ice creams as well as soaps and lotions to aid in reducing harvesting plantations of oil palm. Supporting this project, other researchers are investigating the development of oil profiles of algae and devise replacements for different types of oil. 215 Biofuel Feedstock Synthetic plants are also being investigated by synthetic biologists to create more economical feedstock. By using synthetic DNA sequences to engineer plants, they can be made to perform more efficiently as biofuel feedstock. An example is an engineered synthetic sequence that causes corn to produce an enzyme, which readily breaks down the corns stalks into cellulose to produce cellulosic biofuels. Other similar projects include using synthetic biology to reprogram commodity crops such as corn, cotton and canola as more efficient biofuel feedstock. 216

Food Processing
Synthetic biology may also provide materials, substances, sensors and other technologies that can facilitate, enhance and reduce the cost of food production processes. Particular areas of the food industry likely to profit from synthetic biology tools and techniques include:

215

Presidential Commission for the Study of Bioethical Issues (2010), New Directions, The Ethics of Synthetic Biology and Emerging Technologies 216 A NEST Pathfinder Initiative, (2007)Synthetic Biology.

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Metabolites, health products (e.g. vitamins) and processing aids in the manufacturing process of food and food derivatives, such as nutraceuticals, probiotics and glycolnutrients used to raise the value of certain foods or nutrient-enriched plants. Preservatives, an area already largely based on genetic engineering Flavours and fragrances Food waste processing.

7.7.3. Environmental Applications


Industrial and environmental biotechnology has been described as the third wave of biotechnology innovation (following energy, healthcare and agriculture). Synthetic biology is presented as being able to assist and facilitate with many of the challenges currently being faced in this field. 217 Due to the nature of these applications, they are not expected to make an impact until into horizon 3. Environmental applications of synthetic biology are currently targeted at pollution control and ecological protection. Bioremediation is the use of biological systems to treat environmental contaminants. Researchers are leveraging natural processes to develop microorganisms that can accumulate and/or degrade substances such as heavy metals and pesticides. 218 Synthetic biology and genetic biology is being used in many different ways to tackle these challenges: For mobilisation purposes: such as bacteria being modified to increase their ability to absorb metals For detection through biosensors For transformation of chemicals and substances, such as setting up catalytic reactions allowing the conversion of industry waste into CO2 or water For bioremediation or degradation. A biotechnology example is the use of naturally occurring oil-devouring microorganisms at the site of the 2010 oil spill off the US Gulf Coast. This demonstrated how these organisms could reduce some types of pollution. Synthetic biologists are looking to develop and extend this work to understand, direct and enhance biological capabilities to respond to existing and future pollution and waste issues. Other environmentally relevant examples of synthetic biology applications include laboratoryconstructed synthetic biofilms, which are being developed for use as environmental biosensors.

217 218

European Academies Science Advisory Council (2011) Synthetic Biology: An Introduction. ETC Group, (2010) The New Biomasters, Synthetic Biology and the Next Assault on Biodiversity and Livelihood.

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These sensors could be used to monitor soil for nutrient quality or signs of environmental degradation. The design of biological wetting agents or bio-surfactants could increase the efficiency of bioremediation efforts and minimise the extent of damage from pollutants. Bio-surfactants are naturally produced by bacteria, yeasts, or fungi and are environmentally friendly. Synthetic biology may offer the ability to enhance the features of microbially produced bio-surfactants to tailor them to specific spills or otherwise polluted areas.

7.7.4. Convergence with Other Enabling Technologies


Due to the systems approach of many synthetic biology disciplines, the field uses, overlaps and is driven by several other established scientific disciplines. Biotechnology, nanotechnology, information technology and synthetic biology are so intimately interconnected that it is difficult to make neat distinctions among them. It is also equally hard to cleanly and consistently distinguish those mentioned from other areas of scientific inquiry, such as cognitive neuroscience or even stem cell research. In this respect, the overlap and interconnectedness led Mihail Roco and William Sims Bainbridge (2002) to describe synthetic biology as the convergence of emerging technologies. Figure 18 illustrates the process of creating a synthetic cell as an example of how the interaction of enabling technologies makes synthetic biology possible. Figure 18: Example of the convergence of technology that makes synthetic biology possible

Source: Presidential Commission for the Study of Bioethical Issues

Bio-nanoscience
Since synthetic biology occurs at the nanoscale, it shares many attributes and investigation pathways with nanotechnology. Furthering nanoscience is a natural progression for synthetic

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biology in the business of synthesising whole cells or other living systems. 219 In this light, using synthetic biology, attempts are being made to create manmade cells that are capable of selfassembly, self-repair and reproduction. As an example, nanoscientists are using synthetically produced viruses to construct battery parts. 220

Genetic Engineering and Biotechnology


Biologists believe that synthetic biology is a window through which they can understand how living things operate. Synthetic biology provides a mechanism to test, through sequencing, modelling, and reproduction, our current understanding of the life sciences. Synthetic biology allows, through modelling and manipulation of living systems, researchers to better understand and define the functions of genes and physiological systems. Synthetic biology relies and is driven by concepts from molecular biology and chemically synthesised DNA. The ability to sequence and synthesise DNA allows the design and redesign of biological systems. 221 The rDNA technology, or genetic engineering, allowed for some important successes, such as biosynthetic insulin. However, rDNA is expensive and, from an engineering perspective, messy since knowledge built up in this discipline can be difficult to translate to other projects and fields of study. Furthermore, rDNA cannot address all issues associated with genetic engineering. Beyond the technical shortcomings, there is a deeper conceptual problem with the existing approaches to genetic engineering. As our understanding in this area increases, it has become evident that current techniques underestimate the complexity of naturally occurring processes. Research into addressing these shortcomings is driving the development of new processes and scientific understanding through synthetic biology. Large-scale genome sequencing investigations are providing a wealth of information on naturally occurring organisms. Synthetic biologists use sequencing to verify that they fabricated their engineered system as intended. 222 Combining the ease at which DNA can now be synthesised with developments in computer modelling, the building of de novo proteins and the use of bioinformatics to predict and analyse those products allow synthetic biologists to create

219

Rejeski, D., (2011) Synthetic Biology A Trip Around the Neighbourhood, U.S Department of Agriculture. Parens, E., etal., (2009) Ethical Issues in Synthetic Biology, Woodrow Wilson International Centre for Scholars European Academies Science Advisory Council (2011) Synthetic Biology: An Introduction. Parens, E., et al., (2009) Ethical Issues in Synthetic Biology, Woodrow Wilson International Centre for Scholars.

220 221 222

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systems that are less complex than naturally occurring systems but are also more efficient at producing the products we want. 223

Engineering and Information Technology


Engineers working in the field of synthetic biology hope to bring a level of standardisation, predictability, and reproducibility to biology. Synthetic biology is an expansion of biotechnology, with the added dimension of being able to design, build and manipulate engineered biological systems. 224 For this engineering approach to be successful, synthetic biology needs to develop transferable and modular tools and compatible building blocks comparable to those used in traditional engineering. 225 From an engineering perspective, DNA can be viewed simply as information. Furthermore, cells can be viewed as networks much like the information networks in information technology. For this reason, the convergence with information technology and computer modelling has large implications for where and how production of synthetic parts can take place. Sophisticated computer modelling and simulations are allowing synthetic biologists to better predict system behaviour prior to fabrication. Synthetic biology will benefit from better models of; how biological molecules bind substrates and catalyze reactions; how DNA encodes the information needed to specify the cell; and how multi-component integrated systems behave. Recently, multi-scale models of gene regulatory networks have been developed that focus on synthetic biology applications. As with all other areas of science and engineering, precise and accurate quantitative measurements of biological systems are crucial to improving understanding of biology and synthetically produced components. Measurements help to explain how systems work and provide the basis for model construction and validation. Differences between predicted and measured system behaviour can identify gaps in understanding and explain why synthetic systems do not always behave as intended. For this reason, technologies which allow many parallel and time-dependent measurements will be especially useful in synthetic biology. Microscopy and flow cytometry are examples of useful measurement technologies. 226

Gutmann, A., (2010) New Directions, The Ethics of Synthetic Biology and Emerging Technologies, Presidential Commission for the Study of Bioethical Issues.
224 225 226

223

Parens, E., et al., (2009) Ethical Issues in Synthetic Biology, Woodrow Wilson International Centre for Scholars. A NEST Pathfinder Initiative, (2007)Synthetic Biology. Parens, E., et al., (2009) Ethical Issues in Synthetic Biology, Woodrow Wilson International Centre for Scholars.

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Chemistry
From the perspective of a chemist, synthetic biology is a tool for manufacturing new molecules and molecular systems. Chemists have used synthetic biology to directly manipulate chemical reactions in living systems, for example, in making medicines quickly and inexpensively. They have also produced biofuels that can harness energy directly from plants and the sun.

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8.0 CONTRIBUTION TO ADDRESSING AUSTRALIAS MAJOR NATIONAL CHALLENGES


A number of major challenges are facing Australia, both nationally and from a global perspective. These challenges will impact on the future growth and prosperity of Australia and will need to be overcome or at least mitigated for the benefit and advancement of the nation. Taking into account the opportunities, risks and barriers discussed in this roadmap study, the potential contribution of the new and emergent enabling technologies to meeting some of these challenges is discussed. The major national challenges, many of which are interrelated that are facing Australia include: Capturing opportunities from the mining boom Impacts of climate change Increasing demand for energy Sustainable use of natural resources Ageing of the population and health Food security with rising global demand for food Biosecurity Changing factors of global competitiveness aligned with major shifts in the global geopolitical economy National defence and uptake of enabling technologies in soldiering of the future This section discusses the potential of enabling technologies to address Australias national challenges listed above. The most attractive early applications of enabling technologies are those that can yield large payoffs from small effort with low development requirements. These applications include sensors, computer devices, catalysts, and therapeutic agents. Many other applications, such as materials and energy production systems present greater challenges of production cost and complexity.

8.1. Mining Boom


Overview
Due to the appetite for natural resources of developing nations, notably China and India, Australia is currently experiencing a mining boom. As this boom is focused on finite resources, Australia needs to maximise and leverage the benefits for all Australians. The challenge facing the mining industry is that Australias share of global mineral investment in exploration is
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declining. At the moment, many companies are trading the increased technical risk of discovering and developing Australian deposits for the higher sovereign risk associated with operating in other countries. 227 To secure the future of the minerals industry, Australia needs to leverage the use of enabling technologies to solve the technical challenges that will be associated with Australian mineral operations. These challenges include: Limited or no outcrop Greater depth of operation Higher rock stresses Increased gas levels Lower grades Scarcer human resources Globally high standards of safety and health Appropriately strict environmental impact regimes. Australia outperformed many other developed economies through the global financial crisis, avoiding a recession. This economic strength is due in no small part to the mining sector, leveraging an abundance of natural resources and unprecedented demand from developing nations (for example; Brazil, Russia, India and China). Emerging nanotechnologies and biotechnologies have the potential to improve the environmental and production performance of the mining industry in Australia. These technologies will enable Australia to extract better value from mineral resources and will assist in addressing the challenges of sustainability and international competition.

The Role of Enabling Technologies


One important application of enabling technologies in the Australian mining industry is in reducing the environmental cost of mining activities. For example, bioremediation and phytoremediation have important applications in the stabilisation and isolation of mine wastes. 228 rDNA technology may play an important role in this. Transgenic plants with enhanced phytorememdiation capabilities have already been developed. Similarly transgenic and even synthetic microbes may also be used in mine site bioremediation. Transgenic microalgae have already been used for the removal and recovery of heavy metals from industrial wastewater,

227

CSIRO, Minerals Down Under: helping to transform the minerals industry in Australia, accessed 1/08/2011, available at: www.csiro.au/org/Minerals-Down-Under-Overview.html Mukhopadhyay, S., and Kumar Maiti, S. (2010) Phytoremediation of Metal Enriched Mine Waste: A review, Global Journal of Environmental Research

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and other transgenic microbes have been employed to biodegrade heavy metals in soil to less toxic and/or less bio-available products. 229 As greater economic value is placed on the preservation of the environment, Australia can leverage its research capability to become a world leader in minimal-impact mining, and mine site regeneration. Biotechnology also has applications in the extraction of minerals. Biomining is the processing of metal-containing ores using micro-biological technology, and is currently used commercially to enhance the extraction of gold and copper, and to a lesser extent to leach base metals from ores and concentrates. 230 Biomining technologies, including bioleaching, can reduce capital costs and environmental pollution associated with metal extraction. Conventional techniques for the recovery of metals from low-grade ores are highly capital and energy intensive, and come at a high environmental cost. Biomining lends itself to processing low-grade deposits, especially small or remote deposits that cant be cost-effectively treated by existing technologies. As more low-grade ore deposits are being exploited in Australia, and environmental conservation becomes a higher national priority, biomining is expected to become more commercially viable. Biohydrometallurgy is an area that utilises enabling technologies from a large number of areas. Applications involve microbial mining, oil recovery, bioleaching, water-treatment and others. Biohydrometallurgy is mainly used to recover certain metals from sulphide ores. It is usually utilised when conventional mining procedures are too expensive or ineffective in recovering a metals such as copper, gold, lead, nickel and zinc. Bioleaching uses bacteria to extract metals from ore. This technique is most commonly used in copper and gold mining. Similarly, bio-oxidation also uses bacteria to release metals in ore bodies. These techniques have several advantages over traditional methods including improved recovery rates, low capital and energy costs, the potential to be used in remote locations and lower skill requirements than technically advanced mechanical systems. Biotechnology can also be used in oil extraction. Microbial enhanced oil recovery (MEOR) uses microorganisms to increase the amount of oil recoverable from wells. Acids and/or gases produced by microorganisms can be used to free oil pockets in reservoir rock and therefore increase oil extraction. MEOR technology is currently being used at a small scale in several oil fields. Nanosensors are also being used in oil and gas extraction by assisting in the detection of uncharted reserves. Further, nanosensing technologies are expected to have many other

Shukla, K., et al (2010) Bioremediation: Developments, current practices and perspectives, Genetic Engineering and Biotechnology Journal.
230

229

Brierley, C. (2008) How will biomining be applied in the future? Tran. Nonferrous Met. Soc. China

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applications in the mining industry, particularly for resource management and environmental remediation uses. Synthetic biology also has the potential to allow the harvest of coal bed methane through synthetic microbial digestion. Looking to horizon 2 and 3 applications, advanced biotechnologies may be used to optimise and synthetically produce bacteria and microorganisms for applications discussed above. Potential advantages include increasing leaching rates, increase tolerance to harsh conditions or produce novel characteristics that improve oil recovery. Expected continued high demand for natural resources will drive research in this area.

8.2. Climate Change


Overview
The emission of greenhouse gases from human activity and energy use are major contributing factors to climate change and associated increases in global temperatures. As demand for fossil fuels continues to grow through increased energy requirements and population growth, greenhouse gas emissions are expected to continue increasing. Each decade in Australia since the 1940s has been warmer than the last with 2001 to 2010 being the warmest decade on record in Australia and around the globe. 231 A changing climate will have consequences in Australia, such as more frequent and more extreme weather events, including heat-waves, storms, cyclones and bushfires, a continued decline in rainfall in southern Australia. Higher temperatures will lead to decreases in water supplies. Current actions looking to address some of these issues include changing the way buildings and infrastructure are designed, diversifying the water supplies in cities and improving Australian water use, rethinking the way vulnerable coastal areas are developed and planting more drought-tolerant crops. In 2007, the Intergovernmental Panel on Climate Change (IPCC)232 concluded that, for Australia, "Ecosystems, water security and coastal communities have a narrow coping range. Even if adaptive capacity is realised, vulnerability becomes significant for 1.5 to 2.0C of global warming. Energy security, health (heat-related deaths), agriculture and tourism have larger coping ranges and adaptive capacity, but they may become vulnerable if global warming exceeds 3.0C."

231

Annual Australian Climate Statement 2009, Bureau of Meteorology, 2010, available at: http://www.bom.gov.au/announcements/media_releases/climate/change/20100105.shtml

Working Group II Report "Impacts, Adaptation and Vulnerability, IPCC, 2007, available at: http://www.ipcc.ch/publications_and_data/publications_and_data_reports.shtml

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Climate change is expected to impact almost every aspect of the Australian economy, society and environment. Australian ecosystems and biodiversity, water resources, agriculture, built infrastructure, regional and remote communities, disease patterns and associated health risks are all expected to be adversely affected by climate change. The Australian AUD $214 billion export sector is particularly exposed due to the vulnerability of the key export commodities. 233 The productivity of agriculture, particularly irrigation dependent agriculture, forestry and fisheries is also expected to be affected by changing climate patterns and extreme weather events. Tourism will also be impacted by changes to natural habitats of high tourism worth. Global warming may also alter the spread of infectious diseases to new geographic regions and therefore cause new health risks in new areas, opening up new challenges and opportunities for enabling technology based medical applications. According to the CSIRO, potential impacts of climate change on Australia and its economy include: Water scarcity and supply reliability, affecting irrigation, domestic and industrial water use, and environmental flows. Development and population growth in coastal regions will exacerbate the risks from sea-level rise. Losses of unique Australian animal and plant species, disrupting ecosystem function and causing the loss of ecosystem services. Higher temperatures, altered groundwater and soil conditions, sea-level rise and changed rainfall regimes will affect urban infrastructure including failure of urban drainage and sewerage systems, potential blackouts, transport disruption, and greater building damage. To address these issues, the Australian Government has a target of reducing carbon pollution from 2000 levels by between five and 25 per cent. It is expected that if Australia takes no action, by 2020, carbon pollution could be 20 per cent higher than 2000 levels. Furthermore, The Garnaut report recommends the following three areas of consideration that will play a key role in Australia dealing with climate change affects: Innovation Nation the ability of Australians to adapt and innovate to climate change and associated opportunities.

233

Addressing National Challenges, 2008, CSIRO, available at: http://www.csiro.au/files/files/piih.pdf

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Transforming the land sector adapting to higher costs of producing farm products, but also in making the most of anticipated higher food prices. Electricity transformation the lowest-cost path to reducing emissions in the transport, industrial and household sectors involves greater use of low-emissions electricity.

The Role of Enabling Technologies


Enabling technologies will play an important role in addressing the effects of climate change. In particular, the following applications of enabling technologies are expected to be of great importance for addressing climate change: The development of biofuels to supplement or replace carbon intensive fossil fuels The use of biotechnology to produce feedstock for chemical and plastics to replace reliance on fossil fuels The genetic modification of crops to adapt to increasing aridity or pest infestations Use of manufactured nanomaterials such as metal oxides as a slurry additive Using biosensors to monitor soil nutrient quality, moisture availability and/or environmental degradation. More efficient energy production and storage, including power generation, energy capture and storage, fuel cells, etc. To leverage and use efficiently and sustainably Australias natural resources. The development and adoption of agricultural biotechnologies, particularly plant varieties with increased stress tolerance, could help mitigate these effects. The increased demand for energy and associated energy price increases could drive developments and uptake of bioenergy and industrial biotechnology in processes where energy consumption can be reduced. Enabling technologies can be used in the environmental services sector to repair and monitor environmental conditions. Two main applications include: Remediation the use of microorganisms and nanomaterials to reduce, eliminate, contain, or transform contaminants present in soils, sediments, water, or air. Sensors devices that use an immobilised biologically related agent (such as an enzyme, antibiotic, organelle or whole cell) to detect or measure a chemical compound. Sensors preforming these functions will become available at the nanoscale. Waste from industry (e.g. heavy metals), agriculture (e.g. chemical fertilisers) and sewage treatment pose a modern and challenging problem to many countries. Currently technology developments are focused on bioremediation and improving the ability of microorganisms to breakdown and neutralise harmful compounds. Given the complex compounds that are required
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to be treated (mainly from industrial processes); it is likely that metabolic pathway engineering will provide a solution to improve efficiencies. Solutions are also being investigated to increase the resistance of microorganisms to toxins and metals to allow a broader application of bioremediation techniques and technologies. Biosensors (including nanosensors) can be used for long-term monitoring of environmental conditions and biodiversity. Advances in technology are allowing for in-situ sensing capabilities for biological conditions including being self-powered, self-healing and biologically compatible. Associated with these breakthroughs, biological monitoring will need to integrate information analysis with appropriate in-situ responses to be considered a useful advance over existing techniques. Biosensors will also play an important role in assessing, tracking and analysing climate change and its effects. Advances in the quality and amount of information available will require new sensor designs for effective biological monitoring. Biosensors are likely to be used over conventional methods when continuous results are required, e.g. monitoring of bioterrorism, chemical weapons, explosives and drinking water. In addition to bioremediation and biosensors, biotechnology and nanotechnology is also being used to produce solutions that can be applied as pre-treatment for chemicals or fuels to reduce the presence of harmful compounds. For example, microbes could be used to remove sulphur compounds when burning fossil fuels and therefore reduce the effects of acid rain. Climate change is an integrated issue that is affected by a large number of external factors. Many of the potential benefits of enabling technologies to address climate change are linked and integrated to the application of renewable energy and resource efficiency, which is discussed further below.

8.3. Increasing Demand for Energy Efficiency and Renewable Energy Sources
Overview
Australia is currently dependant on finite natural resources for energy production. These energy sources are high emitters of carbon dioxide, a major contributor to global warming and climate change. For this reason, the drive towards clean renewable energy and a low carbon emission future is becoming increasingly important in Australia. Therefore, the application of costeffective, renewable, low-emission energy sources will contribute positively to Australias energy future. The national priorities to address Australian energy use, as identified by the CSIRO, include:
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Supporting a smooth transition to a new energy future. Securing access to cost competitive petroleum resources. Accelerating large-scale cuts to emissions. Without major changes to address energy use and climate change, increasing energy use and population growth will continue to drive the nations reliance on fossil fuels. It is expected that 80 per cent of the demand for energy will be met by fossil fuels out to 2030. 234 Developing nations will demand the largest portion of energy into the future, with the Asia-Pacific region being the world's largest consumer. Estimates suggest that the world will need 50 per cent more energy in 2020 than current levels. This will create new energy related issues including: Security and sustainability of energy supply The link between combustion of fossil fuels and dramatic changes in climate Availability of technological innovation in energy conversion, transmission and use. The role of technological innovation is critical to a clean energy future. The International Energy Agency 235 has shown that by using existing technologies more effectively and by accelerating development of new technologies, a clean and sustainable energy future is possible. This future can be realised through a number of key strategies: Realising energy efficiency gains in the transport, industry and building sectors Decarbonised power generation through renewable energy sources such as wind, solar and geothermal, natural gas and coal with CO2 capture and storage Increased use of biofuels for road transport. Electricity generation and transport fuels are important for Australias clean energy future due to its large land mass and long distances between population centres. Australia has large fossil fuels energy resources; black coal reserves have an estimated potential life of 100 years and brown coal 500 years. Both are major sources of electricity for the country, and are expected to continue to be so into the future. Natural gas reserves are estimated to have a life of about 60 years in Australia. Contributions from renewable energy sources such as hydro, biomass, wind and solar are currently at low levels compared to existing power generation techniques. Australian Government policy has historically stressed energy competitiveness, security and sustainability. The development of cleaner technologies for fossil fuel combustion, coupled with carbon capture and storage has been favoured to support continued use of black coal.

234 235

International Energy Outlook, 2011, Energy Information Administration, available at: http://38.96.246.204/forecasts/ieo/index.cfm

The Outlook to 2050 and the Role of Energy Technology, Summary and Policy Implications, International Energy Agency, available at: http://www.iea.org/textbase/npsum/etp.pdf

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Government programs have also encouraged the adoption of renewable energy production such as photovoltaic systems, hydro and wind turbines.

The Role of Enabling Technologies


The enabling technologies discussed in this report have the potential to address issues associated with increasing demand and consumption of energy resources, as well as ensuring Australias energy security by reducing the nations dependence on fossil fuels. The development of industries around addressing Australias increasing need for energy through enabling technologies has the ability to create a growing market sector that will have positive flow on effects to other industry sectors. Such a sector would aid in accelerating the cost competitiveness of renewable and other clean energy sources against existing forms of energy such as fossil fuels.

Nanotechnologies
Developments in manufactured nanomaterials may provide lighter, stronger and increased thermal and electrically efficient materials. These materials and components will have a wide variety of applications in energy production, clean coal, fuel cells and more efficient, practical and integrated solar cells. One such example is metal/organometallics that can to be used to improve catalytic converters. Some possible applications of nanotechnologies in energy systems have been identified as: Energy conversion: solar cells, thermoelectric devices, catalysts, environmental management, fuel cells, CO2 capture and storage, hydrogen production. Energy storage: supercapacitors, batteries, hydrogen storage. Energy transmission: superconducting cables, hydrogen distribution. Energy use: conservation in manufacturing industries and construction materials for transport, fuel cells, catalysts for combustion. Many of these applications offer potential energy savings and reductions in greenhouse gas emissions. Two studies that are applicable to Australia include a US study suggesting that potential reductions from a number of nanotechnology based products could be about 15 per cent of total energy consumption (lightweight materials in transport, solid-state lighting, selfoptimising motor systems, smart roofs with reflectivity control and energy-efficient separation membranes). A second study from the UK estimates that an approximate reduction of 20 per cent in greenhouse gas emissions is possible by 2050 from improved storage and the introduction of a
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hydrogen economy. This study identified the following as opportunities for applications of nanotechnologies: Horizon 1: energy conservation, environmental management, catalysts for combustion, photovoltaic cells. Horizon 2: catalysts for conversion of biomass, gas and coal, fuel cells, advanced photovoltaic systems using engineered nanomaterials. Horizon 3: hydrogen production, storage and use. A horizon 1 analysis of global energy markets suggests that short term impacts of enabling technologies will be in more efficient use of existing resources rather than in the creation of new products such as hydrogen-based technologies. In this respect, solid-state lighting, nanocomposite materials, aerogels and fuel-borne catalysts are seen as short term opportunities. Energy saving technologies and applications in transport are also expected to have a large impact in the short term. In horizons 2 and 3, the commercialisation of energy generation systems such as improved photovoltaics and focussed solar systems and hydrogen fuel cells, will impact the energy markets. Given the time required and scale of expenditure involved in commercialising new technologies, publicprivate partnerships are required and are currently being used in the development of low-emission coal combustion processes and carbon capture and storage technologies. Examples of Australian companies in the energy sector utilising enabling technologies include CAP-XX (supercapacitors), Ceramic Fuel Cells, Dyesol (dye sensitised solar cells), Origin Energy (silicon sliver solar cells) and Hydrexia (hydrogen storage). The development of nanoscale materials, as well as the methods to characterise, manipulate and assemble them, will continue to change traditional approaches to energy conversion, storage, transmission and use. Properties of nanomaterials such as carbon nanotubes, is their high surface area per unit volume which leads to much higher surface activity than in typical materials. This potentially can aid in accelerating chemical reactions and improving the efficiency of many chemical processes.

Biofuels
Energy prices are expected to continue to increase into the future, driving an increase in R&D for biofuels. This will lead to new agricultural feedstocks and the development of new enzymes to increase production capacity, reduce biomass and energy input requirements, and reduce the costs of using cellulosic biomass.
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Current research and technologies will be able to use biotechnology to increase the production of biofuels such as cellulosic ethanol through the development of super-fermenting organisms and more efficient feedstock. Breakthroughs are also occurring in photosynthetic algae and using synthetic biology for the production of bio-hydrogen using engineered E. coli, starch and water via a synthetic enzymatic pathways. Horizon 3 applications are expected to result from research into producing electric current directly from synthetic living cells without the need for post processing. Biotechnology and synthetic biology will also play an important role in the development of commercial grade biofuels. Currently, many biofuels are produced without using modern biotechnology. Ethanol is produced from sugar cane through fermenting sugars with yeast, a method that has been used for millennia. However, there are two places in biofuel production where biotechnology is used, the development of crops tailored to bioenergy production with increased oil content or maize) and new processes that improve the conversion of biomass to fuel. Many industries, including food processing and pulp and paper, already process biomass the energy as a by-product. These production plants do not use modern biotechnology. A pulp and paper mill can produce a variety of paper from wood while using wastes and residues to generate electricity. Likewise, the production of ethanol from sugar cane relies on conventional fermentation, while bagasse is simply burned to generate electricity. There are also existing biorefineries that use enzymes produced from modified microorganisms to convert starch into sugars that are then fermented into ethanol. However, developments in biorefineries are occurring rapidly utilising biotechnology. A number of these are included below:

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Table 14: Characteristics of New Types of Biorefineries


CONCEPT TYPE OF FEEDSTOCK Wet biomass: green grasses and green crops such as lucerne and clover Whole crop (including straw) cereals such as rye, wheat and maize Lignocellulosic-rich biomass; straw, chaff, reed, miscanthus, wood All types of biomass PREDOMINANT TECHNOLOGY Pre-treatment, pressing, fractionation, separation, digestion Wet or dry milling, biochemical conversion Pre-treatment, chemical and enzymatic hydrolysis, fermentation, separation Combination of sugar platform (biochemical conversion) and syngas platform (thermochemical conversion) Thermochemical conversion: torrefaction, pyrolysis, gasification, HTU, product separation, catalytic synthesis Cell disruption, product extraction and separation PHASE OF DEVELOPMENT

Green biorefineries

Pilot plant and R&D

Whole crop biorefineries Lignocellulosic feedstock biorefineries Two platform concept biorefineries Thermo chemical biorefineries Marine biorefineries

Pilot plant and demonstration plant R&D / pilot plant, demonstration plant (US) Pilot plant

All types of biomass Aquatic biomass: microalgae and macroalgae (seaweed)

Pilot plant (R&D and demonstration)

R&D (and pilot plant)

Source: Ree and Annevelink, 2007

Debate over the use of food crops and cropland for biofuel production, as well as debates over the environmental benefits of using maize, wheat and soybeans to produce fuels, could lead to substantial changes in biofuel production. An expected outcome is a shift in research priorities to non-food crops such as grasses and tree species that can be grown on land unsuitable for crop agriculture.

Fuel Cells
Fuel cells are expected to play a major role in addressing the increased demand for energy as well as providing benefits to climate change and the environment. Despite advances in recent years, existing fuel cell technology still has several challenges, including: the lower than theoretical efficiency of energy conversion, the high platinum content of electrocatalysts and the instability of platinum under long-term operational cycling conditions. Nanoparticles may provide a solution as they have different catalytic properties from conventional materials. The ability to place atoms of a catalyst on the well-ordered facets of a nanoparticle may be conducive to improving their properties and therefore fuel system performance. Carbon nanotubes may also play an important role in the development of more efficient fuel cells.

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Australia has well established research foundations in solid oxide fuel cells, which use nonporous ceramic electrodes at high temperatures to achieve high efficiencies. These materials use ceramic nanopowders to improve the fabrication of electrode membranes and thus reduce costs. Research is also being conducted into providing technologies that can be used for the introduction of fuel cells into vehicles. In lower temperature cells, polymer electrolytes and electrodes of porous carbon with catalytic layers are often used. In this process, costs can be reduced by using plasma sputtered nanofilms.

Hydrogen Production, Storage and Use


The attraction of hydrogen as a clean energy source is that its combustion produces only water and no greenhouse gases. Hydrogen can be burnt in a combustion chamber to generate power in vehicles or used in fuel cells to generate electricity. This has led to the concept of a hydrogen economy to replace the present hydrocarbon economy. A critical factor in the establishment of a hydrogen economy is the supply of sufficient hydrogen for the communitys needs. There are various ways of producing hydrogen including: steam reforming of natural gas, gasification of coal, breakdown of water by electrolysis or hightemperature reaction. Current research is concentrating on methods to produce hydrogen that do not involve the release of greenhouse gases. For Australia, with ample natural gas supplies, the use of nanostructured catalysts may improve the efficiency of the reforming and gasification processes involved in producing hydrogen. Hydrogen needs to be compressed for distribution, storage and use. Hydrogen also needs local storage solutions, particular if it is to be used in vehicles. Nanostructured materials such as metal hydrides and carbon nanotubes are being researched to assist in addressing storage challenges. The key to practical use of hydrogen is the ability to absorb and release the hydrogen over many cycles without deterioration of the storage device.

Solar Energy
The use of photovoltaic (PV) devices to produce energy is being increasingly recognised as an important component of future clean energy production. While silicon-based photovoltaics still dominate the market, the cost remains an order of magnitude too high to compete with power generation from fossil fuels. Thin film technologies are providing promise of low cost PV advancements. Technologies such as nanostructured organic photovoltaics (NOPV) are believed to be a key to future PV systems. Low cost NOPVs, low temperature processing, and the potential to make large area devices on flexible substrate cheaply make them very attractive. In general terms, an optimised NOPV
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device requires controlling the organisation of nanocomponents. NOPVs have the potential to provide large-scale, low cost clean electrical power. With its abundance of solar radiation, Australia is ideally placed to develop and exploit PV technologies such as NOPV. While silicon is the most widely used material, Australian research is examining a variety of alternative approaches including thin crystalline silicon slivers, crystalline silicon-on-glass technology, organic nanofilms on polymers, quantum dots and dye sensitised cells. The aim of this research is to reduce the cost of production of solar technologies and increase their efficiencies.

Energy Conservation
Energy efficiency is also a key Government policy area. Energy efficiency is a critical way for Australia to waste less energy, reduce the demand on energy resources and lower the greenhouse gas emissions. Reducing the amount of energy used is widely believed to be the quickest, simplest and most cost-effective way to reduce Australias greenhouse gas emissions. With respect to domestic and industrial dwellings, the high summer temperatures in Australia, and often high humidity, mean that air conditioning usage is high compared with other countries. Potential solutions to reduce air conditioning dependence is more efficient insulation. Potential candidates to serve this function include aerogels formed from nanostructured carbon or silica for the use of smart glazing. Smart glazing involves the use of multilayer nanoscale coatings applied to glass surfaces to enable them to change their transmittance and reduce internal temperatures. Lighting also consumes a considerable amount of electricity. Solid-state lighting (SSL) offers the potential to greatly increase the efficiency of artificial light production. SSL is the direct conversion of electricity to light using a semiconductor. The use of nanoscale production methods would allow the controlled arrangement of the charge transporting and light emitting building blocks and therefore greatly increase efficiency of SSLs. Light emitting devices (LEDs) utilise crystalline semiconductors. The management of single atomic defects is important for efficient light output. Organic LEDs (OLEDs) are based on largely amorphous, very thin films of molecular materials. As with SSLs, this potential cannot currently be recognised as there is a lack of technology to assemble the bulk structure with molecular precision. If this technology were available, the potential exists to manufacture both LEDs and OLEDs with close to 100 per cent of the thermodynamic efficiency for conversion of electricity to light.

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8.4. Sustainable Use of Natural Resources


Overview
Sustainable resource efficiency includes addressing concerns about the overexploitation of natural resources and establishing sustainable ways of living. This includes the intelligent use, conservation and renewal of natural resources and ecological systems.236 Major challenges for Australia include the protection of environmental amenity, natural resources, water management and waste management. Resource efficiency impacts the following policy considerations: The sustainable use of natural resources. Reduce the environmental impact of resource use at local, regional and global scales. Dematerialise economic processes and reduce waste and greenhouse gas emissions by introducing eco-efficiency and cleaner production strategies. Promote increased consumer awareness and responsibility for resource use. Identify transition pathways for sustainable resource use, including adaptive responses to climate change. Natural resources underpin nearly every economy around the world. However, the current rate of resource use by developed and developing nations is unsustainable. Unsustainable resource use may exacerbate the effects of climate change and therefore cause serious damage to the environment. As developing nations grow, their resource use will continue to rise, compounding environmental impacts. One of the reasons for current unsustainable development trends is the large amounts of materials used by industrialised and developing societies, resulting in rising resource use per capita. Policy and planning has realised the importance of sustainable resource use and has led to investment in understanding the relationship between society and natural resource use, called social metabolism. Research institutes such as CSIRO are hoping that by understanding this relationship, production and consumption can be made more sustainable. Industrial metabolism is also being investigated for sustainable resource use by Australian industries. Due to increases in water demand and climate change, strategies that reduce demand, increase efficiency and maximise wastewater reuse will be important in implementing a sustainable future. Associated with increased water demand is the increased demand on agriculture to meet

236

Sustainable use of natural resources, CSIRO website, accessed 1/08/2011, available at: www.csiro.au/science/Sustainable-Resource-Use.html

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growing food demands, both in Australia, and globally. Agriculture is a key user of water resources and along with the potential for droughts, could result in major strains on Australian water resources. Meat production, which is a key Australian agricultural output, is especially water intensive. As an already arid land mass, this effect could potentially be greater in Australia than other nations. As discussed above, water is and will continue to be a key natural resource for Australia. The Australian Government has several key policy areas to address water issues and security: Growing more food with less water Supporting farmers to grow more food with less water. Investment in the future of farming in the Murray-Darling Basin. Updating old irrigation systems and putting in new water saving infrastructure.

Delivering water back to Australia rivers Putting more water into the Murray-Darling Basin's river system. Water buy backs to put back in rivers. Purchases so far will return on average more than 600 billion litres a year. Securing water for Australia's cities and towns Alternative water supplies for cities and towns. Using stormwater, desalination and recycling to reduce reliance on rivers for water supplies. Smart new projects to save water. Helping families save water at home Better use of water in the home. National water efficiency standards mean that it is easier to buy water saving washing machines, showerheads and dishwashers.

The Role of Enabling Technologies


Enabling technologies provide the opportunity to do more with fewer resources. This will aid in addressing and meeting rapidly rising demands that humans are placing on all resources. Enabling technologies also provides the opportunity to take advantage of previously considered waste such as wastewater, sewage and other industrial process by-products. Further to the previous discussions on biofuels, competition for natural resources and agriculture will need to be carefully managed between food and feedstock requirements and those associated with energy production processes. Biotechnology will play an important role in genetically modified crops that reduce resource input requirements and more efficiently produce feedstock for biomass processes.
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Catalysts for Conversion of Natural Gas


Australia has large reserves of natural gas. However many of these reserves are in hard to access and reach areas. The potentially limited scale of many of these fields means that improved efficiency of catalytic conversion is required to make these reserves economically viable. Research into nanostructured catalysts is currently being conducted to develop more cost-effective processes for natural gas recovery.

Forestry
Biotechnology is currently being used to develop faster-growing tree species for timber, pulp, paper, and biofuel production. Improved tree varieties provide commercial opportunity in a range of areas, particularly for sustainable use within new biorefineries that can use tree and pulp products and therefore reduce the reliance on food crops. A number of biotechnologies could also be widely used in forestry programs. Improved pest resistance is an important goal for tree breeding programs, however there may be resistance from groups looking to protect native biodiversity. Tropical conditions favour tree plantations for wood, fibre and biofuels. As a result, biotechnology and GM are being investigated to replicate tropical efficiencies in more arid conditions. These investigations include breeding programs focused on new varieties of fastgrowing, short-rotation trees such as pine and eucalyptus species.

8.5. Ageing of the Population and Health


Overview
Australia, like other OECD countries, is currently experiencing a shift in its population profile to an ageing population. At June 2010, the median age of the Australian population was 36.9 years, up from 36.5 years in 2005. 237 Furthermore, there were 3.01 million people aged 65 years and over in Australia at June 2010, an increase of 370,600 people or 14 per cent since June 2005. Figure 19 shows the age profile of the Australian population as at June 2010.

237

Australian Bureau of Statistic, June 2010

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Figure 19: Australian Population Age Profile

Source: Australian Bureau of Statistic, June 2010

As a result of this ageing population profile, the 2010 Intergenerational Report projected that Australias health expenditure will increase from four per cent of GDP in 2009-10 to 7.1 per cent by 2049-50. 238 Key drivers include; technological innovation (the development of new drugs), increasing demand for health services, and consumer demands for higher levels of care. Ageing is predicted to account for 40 per cent of this rise. Technological innovation actually results in increased expenditure on health care due to increased range, quality and expectation of health services. Efficiency in delivery then becomes very important such as eHealth and other emerging technologies. By 2030, the share of the global population over age 60 will increase while the share under 15 will decrease. This demographic shift will occur in both developed and developing regions, but the increase in the share of older people will be more pronounced in the developed countries. The effects of an ageing population profile will place increasing pressure on pension and healthcare systems. Health aspects have been of particular focus, as preventing or delaying chronic diseases is identified as key to improving wellbeing and containing health care costs. According to the CSIRO, the three major chronic disease burdens throughout the world are

238

The 2010 Intergenerational Report, 2010, Australian Government, available at: http://www.treasury.gov.au/igr/igr2010/

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cancer, neurodegenerative diseases and obesity. Within Australia, the Government has identified seven disease burdens; cancers, cardiovascular diseases, nervous system and sense disorders, mental disorders, chronic respiratory diseases, diabetes and injuries. Exploiting technical advances in biology and other areas will play an important role in tackling these issues. 239 Scientists and researchers are working across a large number of health related areas including: Better screening for and early detection of disease. Better understanding how environment and diet contribute to disease. New protective foods and personalised nutritional and lifestyle approaches to disease prevention. Better ways to monitor and measure health, incorporating improved use of health data through more effective sharing of electronic health records. Further to issues associated with an ageing population, increases in populations and incomes are also expected to have a large impact on the global economy that will have flow on effects to Australia. The world population will reach approximately 8.3 billion in 2030 according to the UN. Almost all population growth, 97 per cent, is expected to occur in developing countries. Asia will continue to dominate the worlds population, with China and India accounting for over a third of the global population. This sustained economic growth and associated higher incomes in developing nations will create additional demand for healthcare, meat, fish and specialty foods, consumer durables, automobiles, higher education, and travel.

The Role of Enabling Technologies


Enabling technologies such as nanotechnology, biotechnology and synthetic biology have the opportunity to make a difference to human kind through advances in a wide range of medical applications; ageing-in-place applications, medicines and vaccines, early screening for cancer, synthetic components and replace or complement faulty or defective natural elements such as genes. Technologies and applications range from preventative (i.e. skin protection) through to curative (medicines). However, this is also the area in which the majority of ethical debates arise.

239

CSIRO Preventative Health Flagship website, accessed 1/08/2011, available at: www.csiro.au/org/P-Health-Flagship.html

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Australia is in a position to leverage current strong research capability in nanotechnology, biotechnology and information technology in the medical science area. This research has led to medical breakthroughs such as the cochlear implant and bionic eye.

Gerontechnology
The application of enabling technologies to ageing is termed gerontechnology, linking medical aspects of ageing (gerontology) with technologies to assist in daily living. The Australian Academy of Technological Sciences and Engineering (ATSE) identified three main categories of interest in gerontechnology related to enabling technologies: Security and safety elderly-friendly homes, prevention of falls, communication and social interaction. Diagnosis and treatment telehealth, coping with degenerative diseases, nanomedicine. Assistive technologies biorobotics, brain/machine interaction, mobility systems. A key concept linking these categories is eHealth; telemedicine and telecare to support the needs of older adults and caregivers remote from medical centres. Enabling technologies have to ability to contribute to many of these areas. These are summarised in the table below:

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Table 15: Possible Technology Areas with Potential Impact on Elderly Australian
AREA 2008-13 2013-18 2018-23 Personal sensory devices to provide data about social and physical environments Sensors to detect composition of drugs, foods and biohazards Sociable technology to enhance relationships with one another and with machines

Tracking systems Improved house design Security and safety Smart homes Improved networking / communications Safer transportation

Implants for monitoring vital symptoms Smarter homes Falls alleviation Smart clothes sensors

Diagnosis and treatment

Telemedicine for remote health monitoring Devices for medication compliance Wider use of biosensors for diagnosis Audio GPS for visually impaired

Rehabilitation robots Tele-rehabilitation, low cost haptic systems Nanodelivery systems for medication Biometric devices for identification Brain/neuro computer interaction Improved vision and hearing devices Exoskeletons for lifting objects Enhanced mobility systems Service robotics Artificial molecular muscles Diagnosis and control of neurodegenerative diseases

Assistive technologies

Aids for driving Ultra lightweight wheel chairs Improved prostheses Handling devices

Source: Australian Academy of Technological Sciences and Engineering, 2010

The convergence of enabling technologies with cognitive science will play an important role in addressing issues associated with health and an aging population. Cognitive science coupled with enabling technologies may yield new approaches to difficult areas such as brain-machine interfaces and dementia.

Nanotechnology
Research and applications of nanomedicine can be classed as predictive, pre-emptive, personalised and regenerative. Predictive refers to nanotechnology that can help clinicians predict diseases. Pre-emptive refers to the early detection of diseases that could lead to early treatment and long term management (e.g. diabetes, cardiovascular disease, hypertension and cancer). Personalised refers to effective personalised medical strategies for patients (e.g. tailored / personalised drugs).

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Short term nanotechnology benefits to human health and well-being include incremental improvements over existing methods in medical health care such as needleless vaccines. Nanomaterials are also being used in tissue engineering, medical imaging, tissue/organ regeneration, smart implants, medical diagnostics, drug delivery, nano-arrays, nanoparticles to improve sunscreens and cosmetics, nanoengineered structures for prosthetics, nanocomposites in integrated diagnostic devices, supramagnetic nanoparticles for use in MRI detection and carbon nanotubes for scanning probe tip, atomic force microscope and drug delivery. Nanotechnologies enable the diagnosis at single cell and molecule level and can be incorporated into current molecular diagnostics such as biochips. Use of this technology on a lab-on-a-chip would refine the examination of fluid droplets containing trace chemicals and viruses. As such, these technologies will extend the limits of current molecular diagnostics and enable point-of-care diagnosis as well as the development of personalised medicine. Most important applications are foreseen in the areas of biomarker research, cancer diagnosis, and detection of infectious microorganisms. Nanodevices such as silica-coated micelles, ceramic nanoparticles, dendrimers and cross linked liposomes are being used for cancer therapy. Nanodentistry is aiding periodontology, implantology, prosthetic dentistry, orthodontics and endodontics, tooth regeneration, dental root implants, soft and hard tissue reconstruction using nanfibrous biomimetric membranes. Nanosensors are being used in the treatment of oral and systemic diseases, DNA sequencing, nucleic acid detection, genomic testing, proteomics, pharmacogenomics, pathogen and virus detection, blood screening, respiratory monitoring, glucose testing and in vivo radiation monitoring. Nanobiosensors are being researched for integration into other technologies such as lab-on-a-chip to facilitate molecular diagnostics. Their applications include detection of microorganisms in samples, monitoring of metabolites in body fluids and detection of tissue pathology such as cancer. Nanowires and nanotubes are being investigated to potentially be used in building blocks for nanoscale electronics and optoelectronics. Boron-doped silicon nanowires have been used to create highly sensitive, real-time electrically based sensors for biological and chemical species. The small size and capability of these semiconductor nanowires for sensitive, label-free, realtime detection of a wide range of chemical and biological species could be exploited in arraybased screening and in vivo diagnostics.

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Genetic Nanomedicine for Gene Detection and Gene Delivery 240


Gene delivery is an area of considerable current interest. DNA, RNA, and oligonucleotides have been used as molecular medicine where they are delivered to specific cell types to either inhibit undesirable gene expression or express therapeutic proteins. To date, the majority of gene therapy systems are based on viral vectors delivered by injection to the sites where the therapeutic effect is desired. Viral gene-transfer techniques can deliver a specific gene to the nucleus of a cell. Nanosystems such as nanoparticles, dendrimers, micelles, molecular conjugates, and liposomes can be designed with different biological properties. These have been extensively investigated for drug and gene delivery applications.

Nanotechnology-Based Regenerative Medicine 241


Combining biodegradable polymer scaffolds and specific cell types, various tissues including cartilage, bone, and blood vessels have been reconstructed, all be it only at a laboratory level. Cell sheet engineering is also being investigated which utilises temperature-responsive culture surfaces. These allow for the non-invasive harvest of cells by temperature reduction. These harvested cell sheets have been used for various tissue reconstructions, including ocular surfaces, periodontal ligaments, cardiac patches, oesophagus, liver, and various other tissues.

Oncology Nanomedicine for Early Diagnosis and Early Treatment in Cancer 242
A key challenge in the diagnosis and treatment of cancer is targeting and local tumour delivery. Research into cancer therapies is focusing on a better understanding at the molecular level. Nanobiotechnology is being used to refine biomarkers, molecular diagnostics, drug discovery, and drug delivery, which are important basic components of personalised medicine. Management of cancer through nanobiotechnology is expected to enable early detection of cancer and more effective treatment. Recently, many nanotechnology tools have become available which can make it possible for clinicians to detect tumours at an early stage. A new technology technique named bioMicroNano-technologies have the potential to provide accurate, realtime, high-throughput screening of tumour cells without the need for sample preparation. These rapid, nano-optical techniques may play an important role in advancing early detection, diagnosis, and treatment of disease.

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Battelle Memorial Institute and Foresight Nanotech Institute (2007) Productive Nanosystems, A Technology Roadmap Battelle Memorial Institute and Foresight Nanotech Institute (2007) Productive Nanosystems, A Technology Roadmap Battelle Memorial Institute and Foresight Nanotech Institute (2007) Productive Nanosystems, A Technology Roadmap

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Nanolaser spectroscopy using the biocavity laser represent new tools that hold promise for detecting early stage cancer and may help to limit delays in diagnosis and treatment. Nanotechnology can help diagnose cancer using dendrimers and kill tumour cells without harming normal healthy cells by tumour selective delivery of genes using nanovectors. These and other technologies are currently in various stages of discovery and development.

Pharmacological Nanomedicine for Drug Delivery and Drug Design 243


Nanobiosensors and nanobiochips are used to improve drug discovery and development. Nanoscale assays are being investigated to contribute to cost-saving in screening. Many drugs discovered in the past could not be used in patients because a suitable method of drug delivery was not available. Nanotechnology is currently being used in the development of new drugs by considering drug-delivery at the earlier stages of drug design.

Cardiovascular Nanomedicine for Heart and Vascular Diseases 244


Current technology limits clinicians to diagnostic techniques that either image or functionally assess the significance of large obstructive vascular lesions. Current imaging modalities do not allow for the possibility of imaging atherosclerotic disease at its earliest stages nor do available techniques allow routine assessment of atherosclerotic lesions susceptible to rupture and/or thrombosis. Techniques have been developed recently to achieve molecular and cellular imaging with most imaging modalities, including nuclear, optical, ultrasound and MRI. Nanotechnology is being utilised in cardiovascular diagnosis through applied nanosystems to the area of atherosclerosis, thrombosis, and vascular biology. The future of cardiovascular diagnosis already is being impacted by nanosystems that can both diagnose pathology and treat it with targeted delivery systems. Advanced imaging methods and new targeted nanoparticles for early characterisation of atherosclerosis and cardiovascular pathology might represent the next frontier for combining imaging and rational drug delivery to facilitate personalised medicine. The rapid growth of nanotechnology and nanoscience could greatly expand the clinical opportunities for molecular imaging.

Neurological Nanomedicine for Neuroscience Research 245


Applications of nanotechnology in basic neuroscience include those that investigate molecular, cellular and physiological processes. Nanoengineered materials for promoting neuronal adhesion and growth to understand the underlying neurobiology of these processes or to

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Battelle Memorial Institute and Foresight Nanotech Institute (2007) Productive Nanosystems, A Technology Roadmap Battelle Memorial Institute and Foresight Nanotech Institute (2007) Productive Nanosystems, A Technology Roadmap Battelle Memorial Institute and Foresight Nanotech Institute (2007) Productive Nanosystems, A Technology Roadmap

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support other technologies designed to interact with neurons in vivo. Imaging applications using nanotechnology tools, in particular, those that focus on chemically functionalised semiconductor quantum dots are also being investigated. Applications of nanotechnology in clinical neuroscience include research aimed at limiting and reversing neuropathological disease states. Nanotechnology approaches are designed to support and/or promote the functional regeneration of the nervous system; neuroprotective strategies, in particular those that use fullerene derivatives; and nanotechnology approaches that facilitate the delivery of drugs and small molecules across the blood-brain barrier. Applications of nanotechnologies for neuroprotection have focused on limiting the damaging effects of free radicals generated after injury, which is a key neuropathological process that contributes to CNS ischaemia, trauma and degenerative disorders.

Medical Devices
An example of enabling technologies being used for drug delivery involves modified autologous cells that produce biopharmaceuticals in the patient, avoiding the need for ongoing injections. Another early-stage innovation that could reach the market by horizon 2 and 3 is a nanodevice that releases drugs in response to over-expression of undesirable proteins.

Biotechnology
Biotechnology has the potential to bring substantial improvements to healthcare delivery through more effective personalised therapies and the development of predictive and preventive medicine. Assisting this trend will be the continual decrease in genome sequencing costs. Almost all research into improving human health will and is using biotechnology. This includes identifying drug targets, improving drug delivery, or tailoring prescribing practices to the genetic characteristics of patients. Testing for serious genetic diseases into the future will become widespread and inexpensive. Testing for genetic profiles that increase the risk of chronic diseases such as arthritis, type II diabetes, heart disease, and some cancers will also become inexpensive. Biotechnology is aiding human health and well-being through gene based applications such as genetic screening and targeted, personalised medicines. Genomic medicine and RNA based therapeutics may also provide improved patient outcomes through personally targeted therapeutics. Furthermore, previously incurable diseases are being addressed with regenerative medicine using stem cell technology. Technology incorporating biotechnologies and nanotechnologies are improving diagnostic tools that will leverage discoveries in epigenetics,

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genomics, bioinformatics and microarray technology, allowing professions to better characterise disease.

Therapeutics
Biotechnological knowledge in small molecule drug development is expected to increase significantly over the next decade meaning that a growing percentage of small molecule pharmaceuticals are likely to be developed or produced using biotechnology. For instance, biotechnology could be used to fight against antibiotic resistance through the development of new antibiotics. Looking to horizon 2 and 3, almost all drugs will have used biotechnology at some point in their development.

Diagnostics
Diagnostic tests based on modern biotechnology are used to identify both genetic diseases and non-genetic diseases. In general, there are two main types of biotechnology-based in vitro diagnostic tests: immunological based on the specificity of antibodies to bind to a target molecule and molecular genetic based on the binding properties of similar gene sequences. Antibodies specific to a very wide range of molecules can be generated and used to detect signs of diseases or to detect foreign substances in a variety of human fluids, such as blood or urine. Genetic tests can identify specific genes, and determine the presence or absence of mutations or other changes in an individuals genetic material. Genetic testing can yield information in a wide variety of circumstances from pre-implantation screening of embryos during in vitro fertilisation, screening of foetuses, or of children or adults to diagnose genetic conditions, to identify a persons risk profile for developing or passing on certain medical conditions, or even to detect infectious agents such as the Human Papilloma Virus. Genetic testing is likely to shift from identifying single genetic mutations to tests for multiple genes that increase the risk of diseases caused by a large number of different factors.

Pharmacogenetics 246
Pharmacogenetics examines the way in which genes and drugs interact. The method uses diagnostics and bioinformatics to identify subgroups that respond or do not respond to specific drugs. This technology could pave the way to personalised health therapies where the type of prescribed drug and dosage are determined by an individuals genome. An increasing number

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of drugs tailored to groups of people who share specific genetic characteristics are likely to reach the market by horizon 2 and 3.

Synthetic Biology
Synthetic biology is improving and providing breakthroughs in technologies that have reached their natural limit through biotechnology and nanotechnology. Synthetic biology is also providing a platform on which general scientific knowledge about how human cells and genomes function and operate. Combining nanotechnology, biotechnology and synthetic biology, scientists are advancing medicines through metabolic engineering for more efficient large-scale screening methods, smart proteins and programmed cells for the molecular classification of tumours, personalised medicines and accelerating the development of vaccines through rapid classification of viruses. Bio and nanosensors will also play a very important role in the collection of quantitative dynamic data in minimally invasive ways.

Brain/Machine Interaction
Human-machine interfaces cover any technology that allows humans to interact with technological devices. Examples include techniques that make use of neural impulses in the brain through brain imaging technologies that are used to control a device through non-invasive interfaces. Various enabling technologies play a role in these techniques such as sensors, biomaterials and microcontrollers. A subset of brain-machine interface technologies related to ageing healthcare is brain stimulation and regulation. Potential benefits of brain stimulation are for severe cases of disease or illness where alternative, less invasive techniques have failed. These may include severe cases of epilepsy or depression and age-related diseases such as Parkinsons disease and Alzheimers disease.

8.6. Food Security


Overview
Population growth and dietary changes are the main drivers in global food security considerations. With an increasing global population, the world is facing an approximate 70 per cent increase in food demand out to 2050 from current levels. The global challenge will be to increase food production through raising agricultural productivity efficiently, whilst decreasing the environmental footprint of these activities. Since food production is heavily reliant on water and land resources, the effects of climate change and use of natural resources play an important role in food security. Australia doesn't currently have a problem feeding its own
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population but has a humanitarian interest in food security and stability for its neighbours and other developing countries. 247 Demand for agricultural products will rise from an increase in both population and income. The latter will increase demand for meat, fish and dairy products, which require large inputs of natural resources including water and animal feed. An increase in intensive agriculture and rising demand for many goods will exacerbate some of todays environmental problems. The Australian Government commissioned a report Australia and Food Security in a Changing World that was delivered in October 2010. This report highlighted Australias strengths in dealing with food security issues: Australian agriculture has maintained its leading position by producing food on the driest inhabited continent, on low quality soils and in the face of continual climate variability. Australia has built strong links and capabilities in delivering technological developments to developing countries in the region. Australia has a strong research and development (R&D) base and agricultural R&D capability ranks among the best in the world. Australia has developed a strong capability in climate change research including studies on impacts, adaptation and mitigation. Australia has expertise in human health and nutrition research. From these strengths, several key areas were identified as important to Australias food security: A national approach to food (bringing together food related policy, regulatory agencies and research organisations). Investing in R&D to reverse declining agricultural productivity growth (improved water use, sustainable management of natural resources and accelerated advances through new plant, livestock and fish breeding strategies). Building human capacity to meet the challenges and opportunities. Raising the importance and awareness of food in the public consciousness. The Australian Government is also actively involved in promoting the benefits of open trade and efficient markets, to expand opportunities for farmers in developing countries to maximise returns on their output and improve their incomes. Concluding the Doha Round of multilateral

CSIRO Food security explained: issues for Australia and our role in the global challenge, accessed 1/08/2011 www.csiro.au/science/Food-security-explained.html

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trade negotiations will reduce the distortions to global agricultural trade, especially production and export subsidies in developed countries.

The Role of Enabling Technologies


The role of enabling technologies in addressing food security will be important in ensuring sustainable food production for human and animal consumption, but also to ensure there is a balance with field feedstock production for biomass and biofuel production. Nanotechnology can help in a variety of ways including agrosensors (nanoagriculture) to monitor the health of crops and farm animals and nanosensors for monitoring spoilage bacteria and other indicators in the food industry. Biotechnology and synthetic biology will provide a platform for the development of metabolites, health products, genetically engineered preservatives, flavours and fragrances that are typically difficult to grow. High-yield and disease-resistant plant feedstock are also being developed using synthetic biology for a number of industries.

Food, Feed, and Beverages


Sustained high demand for food and water will drive agricultural biotechnologies. Of particular interest are technologies that increase yield and tolerance to salinity and drought in new plant varieties. Water shortages and health risks from underdeveloped sanitary systems could also drive the development of industrial biotechnologies that reduce water consumption or purify polluted water sources, particularly for developing nations. By horizons 2 and 3, approximately half of global food and feedstock production is estimated to come from varieties developed using biotechnology. By horizon 2, it is estimated that GM crops could account for more than 75 per cent of hectares planted, particularly for soybeans and cotton crops. The developing nations of China, India and Brazil are expected to drive this growth. The characteristics of new GM crops that are expected to reach market by horizon 2 include herbicide tolerance and pest resistance for barley, sugar beet, peanuts, peas, potato, rice, and safflower, amongst others. Research is also being conducted to improve yield and resistance to drought, salinity and higher temperatures from global warming. Further, research is being conducted on product quality. Breakthroughs in these research areas could provide benefits to farmers, industrial processors, consumers and entire nations (through better food security). Enzymes are another area of research utilising enabling technologies. Enzymes are used in the production of cheeses, breads and fermented beverages. Many enzymes are already being produced using genetically engineered microorganisms to improve production efficiencies.

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Enzymes can also be used in animal feed to improve digestibility and nutrition. For instance, up to 80 per cent of phosphorous in pig and poultry feed is bound by a molecule known as phytate. Phytases increases the nutritional value of the feed by releasing phosphate and by optimising the animals phosphorous intake. This intern reduces the release of phosphorous into the environment and therefore reduces water pollution. Plant diagnostics is another important area where enabling technologies are being utilised. Early diagnostics has the ability to identify a plant disease and treat it before it causes significant crop and/or economic damage. Marker Assisted Selection (MAS) and GM may also be used for insects as they are an important part of plant industries. Research is being conducted into the use of insects and pest-resistant varieties of honeybees and diagnostic tests for pathogens that attack honeybee hives. Improved honeybee varieties are unlikely to be commercially available before horizon 2, but new diagnostic tests could eventuate in the short term.

Animals
Biotechnology has three main applications in the livestock, poultry and aquaculture industries: breeding, propagation and health (diagnostic and therapeutic). Techniques used in these industries reflect and leverage the work done in the plant sectors. Diagnostics can be used to identify inherited diseases in order to remove afflicted animals from breeding. The largest commercial application of biotechnology in animal breeding is the use of MAS to improve the accuracy and speed of conventional breeding programs. MAS is often used by pig breeders to screen for genetic problems and remove defective stock. Cloning (somatic nuclear transfer) utilises advanced biotechnology and consists of removing the nucleus of an egg cell and replacing it with the nucleus (and DNA) of a donor individual of the same species. The cloned animal is identical to the animal that donated the DNA. This technique is too expensive to be widely used for basic animal breeding. Horizon 2 and 3 will see MAS and other biotechnology techniques that do not involve GM likely to be widely used to improve commercial livestock species such as pigs, cattle, dairy cows, and sheep as knowledge in the area increases and costs decrease.

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8.7. Biosecurity
Overview
Biosecurity aims to protect communities against the misuse of pathogens, or their toxins in indirect or direct acts against humans, livestock or crops. Government, industry, and society have a requirement to develop robust biosecurity systems that ensure public safety. Biological materials pose unique security challenges that require non-conventional security mechanisms. The amount of biological material required to undertake an attack is much less than that of chemicals. While Australias geography provides many natural advantages in keeping threats at bay, biosecurity needs to remain a priority area of consideration due to Australias plant and forestry industries being worth AUD $25 billion annually, 60,000 km of coastline and Australias large area of pristine natural environments. 248 The National Centre for Biosecurity highlights the importance of containing the spread of unwanted pests and diseases. This is vital for the success of some of Australias important industries, including horse racing, meat and livestock, and for protecting and preserving Australias native wildlife. The key areas of research focus in Australia (as outlined by the Australian Biosecurity CRC) are developing and refining diagnostic tests, improving understanding of disease ecology, and advancing surveillance methods for disease tracking.

The Role of Enabling Technologies


Enabling technologies could potentially play a large role in addressing the major challenges faced in establishing and enforcing biosecurity in Australia. These include: Infectious disease outbreaks. Biological weapons and bioterrorism. Dual use dilemmas in the life sciences. Laboratory safety and security. The impacts of disease on economies, societies and governments. The growing fields of biotechnology and synthetic biology will bring rise to a biosecurity industry. Various applications for emerging technologies exist including gold core oligonucleotides for biodefence from the nanotechnology sector, biotechnology tools and platforms (e.g. DNA

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sequencing technology) for applications in biometric security devices and the ability to uniquely tag genetic codes for biosecurity using synthetic biology technology and concepts. Policy approaches with respect to biosecurity require international discussions to develop a common approach to securing dangerous pathogens and to mitigate the potential for misuse of research results, both intentional and unintentional. This will need international collaboration on biosurveillance, outbreak detection, development and distribution of medical countermeasures, and response to an incident. This will ultimately require the participation of all stakeholders including individual scientists, businesses, national governments, and international institutions to develop a comprehensive biosecurity strategy.

8.8. Global Competitiveness and Productivity of Australian Industry


Overview
The Australian manufacturing sector is a significant contributor to the Australian economy. It produces around 12 per cent of GDP and almost 40 per cent of exports. It also conducts 31 per cent of business R&D nationally. 249 Furthermore, there is evidence that manufacturing has a multiplier effect on the rest of the economy by driving jobs, investments and sales in other sectors. The US Bureau of Labor Statistics has, for example, calculated that each dollar worth of manufactured goods creates another USD $1.43 of economic contribution towards other sectors, the highest multiplier of any sector. Manufacturing is also the primary source of technological innovation in the Australian business sector. Much of Australias higher value added activity is as a direct result of R&D activities of manufacturing firms. However, the Australian manufacturing industry is facing increasing competition from regional trading partners and the associated rise of low cost, low wage manufacturing economies. To meet these challenges, Australian industry needs to find new ways of doing business that are more efficient. Further to increasing productivity and reducing costs, Australian businesses will also need to increase their energy and water efficiency and reduce emissions, restrictions that do not necessarily apply to regional trading partners. According to the Australian Business Foundation, key changes that are redefining manufacturing are: The disappearing boundary between manufacturing and services.

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Future Manufacturing Industry Innovation Council (2010) Submission to the Victorian Government Inquiry into Manufacturing in Victoria

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New niches to be exploited through outsourcing and in wider and more distributed global value chains. New understandings of innovation based on smart problem-solving for customers which are accessible to all companies, not just those who can afford formal R&D and frontier technologies. Manufacturing is no longer characterised by standardised mass production. Intangible assets, like know-how and know-who, are increasingly important to the sustained success of manufacturing firms. The Australian Business Foundation also identifies key forces of change likely to shape the future environment for manufacturers: More intensified competition. More complex and varied opportunities for doing business globally. Shift from mass production to customisation and personalisation. Growing importance of the low carbon economy. Changing skills needs and imperatives. Technology that transforms entire business models. Collaboration and connectivity that accelerates innovation and competitiveness. Australias global competitiveness will also be affected by the changes in workforce demographics of developing neighbours. In 2030, 90 per cent of the global workforce will be in developing countries, with China and India alone accounting for 40 per cent of the total. Most employment in developed countries will be in the service sector, while employment in developing countries will shift out of agriculture and into manufacturing and services. A Deloitte report on manufacturing competitiveness identified a number of areas of importance for the Australian manufacturing industry. At the top of the list was access to talent which is a change from traditional factors such as labour, materials and energy. Australia needs to have a steady supply of highly skilled workers including scientists, researchers and engineers, as they have been identified as the main drivers of manufacturing competitiveness across a range of nations. The educational qualifications of the global workforce will also continue to change and improve. Investment in education is expected to result in a much larger share of the global working-age population in 2030 with some form of tertiary education. In the OECD area, the share of the population with a tertiary degree is expected to increase from 26 per cent in 2005 to 36 per cent in 2025. In developing countries, the share of the population with a tertiary education is
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projected to grow from just over five per cent to over 10 per cent in China, and to increase from 6.5 per cent to nearly 14 per cent in both Brazil and India in 2030. Global workforce demographic shifts and increasing education levels may create opportunities for the enabling technologies sector. Given the high knowledge intensity of biotechnologies, an increase in the global population with a tertiary education will increase the size of the labour pool available for biotechnology R&D. In developing countries, a larger and better-educated workforce could support greater investment in industrial and primary production biotechnology.

The Role of Enabling Technologies


The future of manufacturing in Australia is reliant on high technology, high skill, high wage, value added manufacturing where Australia has world class capabilities and technology. This requires an increasing focus on advanced processes, materials, enabling technologies and education. Examples of such manufacturing industries where this technology is relied upon and Australia has world class capabilities are: scientific and medical instruments, pharmaceuticals, specialist engineering concentrating on design for manufacture, aerospace and defence component and system design, automotive component design and manufacture, smart machine and assembly tools, advanced metals manufacturing and specialist food and beverage production. In Australia, advances in technology have long been acknowledged as a key contributor to the health and survival of manufacturing and will continue to do so, particularly with reference to enabling technologies. Access to and take-up of enabling technologies, either through investment in R&D or through technology transfer strategies are central to the ability of manufacturers to survive in an increasingly competitive world. However, for Australian manufacturers looking to compete on the global stage, technology alone is no longer enough as a key differentiator. The Australian Business Foundation highlights there is evidence that manufacturing is evolving to meet the challenges and realities of a knowledge-based economy. Two key features include; the increasing interdependence between manufacturing and other sectors of the economy, particularly services; and how the knowledge economy operates in practice as a potential driver of new sources of business innovation and productivity for manufacturing. This leads to more integrated manufacturing businesses where they operate as inventors, innovators, global supply chain managers and service providers. Manufacturers are now engaged not only in production, but in research, design and service provision. In essence,

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manufacturing is the collection of activities that is required to develop, produce and deliver goods and services to customers. In order to compete internationally and increase the value add of their manufactured products, Australian manufacturers are moving away from build to print contracts to complete design to build capabilities. With respect to enabling technologies, this will mean building the knowledge and capability within a firm to integrate nanotechnologies and biotechnologies into new and existing products. This includes R&D (including tapping into research organisations), engineering, prototyping, design and testing services during the production process, and services like maintenance, training and information/help desks. Service firms will also play a role in this development as they look to add value to physical products acquired from manufacturers by bundling them with other services. This results in more competitive capabilities in the enterprises involved, adding to the resilience of Australian manufacturing. As stated above, new technologies will drive new manufacturing products and process. As a result, new services (such as engineering solutions) will need to be developed to capitalise on new opportunities. Services such as design and engineering of nanotechnology and biotechnology will require extensive in-house knowledge (or effective outsourcing options) of enabling technologies. With many enabling technologies still at the research or laboratory stage of development, this capability will take time to develop and integrate into commercial offerings.

Nanotechnology
Nanotechnologies are providing the first applications of enabling technologies into the manufacturing industry. These include nanoscale electronic memory applications, nanoparticles for high performance coatings, nanowhiskers for moisture wicking and stain resistant apparel, Smart nanomaterials which feature intrinsic properties and added properties and nanowires in circuitry such as micro/nanofluidic systems. Carbon nanotubes is an area of significant investment as their applications are wide ranging, including use in polymer additives, carbon composite fillers, electrodes, transistors, sporting goods, super capacitors, efficient electricity and heat conductors. Further advanced applications include advanced optical lithography tools for the production of nanoscale features on microelectronic devices.

Production of Chemicals
Investment in biotechnology and synthetic biology also has potential to drive Australian competitiveness. Applications include direct processing uses such as processing aids in food manufacturing to eliminate and treat industrial waste by-products such as the conversion of industry waste in carbon dioxide or water and the use of bio-surfactants. The role of enabling
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technologies in protecting the environment and the added costs of pricing carbon will become more important in the future as developing countries begin to tackle with these problems. Biotechnology can be used to produce a large number of biofuels and bulk and specialty chemicals, including enzymes, solvents, amino acids, organic acids, vitamins, antibiotics, and biopolymers. In chemical production, biotechnological processes can substitute one or more traditional chemical steps. This can have several advantages including more specific reactions, less demanding production conditions such as lower temperature and pressure, and milder pH conditions, lower energy inputs, lower waste output and reduced environmental impacts. Despite these advantages, the uptake of biotechnology in chemical production is limited, due to the high costs of enzymes or bioreactors and the costs of building or modifying production facilities to use biotechnology. 250 As research continues and the use of enabling technology increases, biotechnology will become more cost competitive through improved production methods and the use of genetic modification and metabolic pathway engineering to increase the output efficiency of microorganisms. Fermentation systems that permit more than one strain of a microorganism in a bioreactor could dramatically reduce production costs. This approach is already established for ethanol production. Horizons 2 and 3 may see new biocatalysts and advanced fermentation processes that are faster, less expensive and more versatile than current practises.

Production of Biomaterials
Biobased chemicals have the potential to replace traditional materials such as wood and cotton in the production of packaging and containers, fabrics and consumer durables (e.g. electronics casings and car components). Bioplastics, manufactured from biopolymers are already commercially available.

Detergents, Textiles and Pulp and Paper


There are many different enzymes currently on the market. Many are produced using modern biotechnologies, with current research aimed at expanding the range of useful enzymes. Biotechnology can create new enzymes through the use of a number of techniques including

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2007, Productive Nanosystems, A Technology Roadmap, Battelle Memorial Institute and Foresight Nanotech Institute

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genetic manipulation, protein engineering, directed evolution, and by advanced selection techniques. In horizons 2 and 3, metabolic pathway engineering could radically change the types of products that can be produced by living cells, particularly in closed industrial system applications. The rate of development of competing technologies will impact the use of enabling technologies in this sector. For examples, some countries are investing heavily in solar, wind, wave, geothermal or nuclear power instead of biorefineries. The relative prices and availability of petroleum versus biomass feedstocks will also drive the industry as this influences the commercial viability of biotechnological production processes compared to processes based on petroleum. The most probable industrial uses of biotechnology in horizon 3 is to produce enzymes for a range of industrial processes; one-step synthesis of high-value chemicals and plastics using microorganisms in bioreactors; and the production of high energy-density biofuels from sugar cane and cellulosic crops. Large-scale commercial production of bulk chemicals or biofuels from microorganisms or algae is difficult to estimate due to technical difficulties in scaling up production to commercial levels.

8.9. National Defence and Security


Overview
Australias national defence and security is growing increasingly complex. Australias defence forces are not only tasked with defending the nation, but also in engaging with Australias neighbours, countering terrorism and protecting borders. Defence also needs to ensure that Australia is ready for the challenges presented by broader environmental, social, economic changes and catastrophic events. In this respect, Australia must remain technologically and scientifically alert, agile and robust so as to anticipate and respond to new and emerging threats. Remaining at the leading edge of enabling technologies is vital for the nations security. It will make Australia more effective in preparation, smarter in preventative measures, stronger in response and more rapid in recovery. 251 National security is increasingly affected by technological change in the broader community. Breakthroughs or advances from other sectors or fields of research can be applied to improve the efficiency and effectiveness of national security capabilities. New technologies transform

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Department of the Prime Minister and Cabinet (2009) The National Security Science and Innovation Strategy

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how societies communicate, travel, store valuable information and manage finances. Terrorists or criminals can create or target vulnerabilities by exploiting ubiquitous or emerging technologies. The National Security Science and Innovation Strategy 252 highlighted the relationship between national security issues and various topics discussed in this paper. Emerging concerns highlighted in this discussion related to the ETRM included: Impact of climate change. Impact of demographic change. Impact of energy and resource security.

The Role of Enabling Technologies


Defence and national security is a combination of food, energy, biosecurity and other forms of security, not just military and defence operations. Therefore, many of the applications of enabling technologies discussed in this section are applicable to defence and security. Defence and national security often are at the forefront and drive technology development. In this respect, defence applications will play an important role in the development of a wide range of enabling technology applications. However, with nanotechnologies and biotechnology, defence is actually adapting research from other sectors, particularly medical biotechnology.

Defense Advanced Research Projects Agency (DARPA)


A factor to consider is Australias defence relationship with other NATO countries. In particular, Australia has very close ties with the US military. Of significance to enabling technologies is Australias collaboration with US Military research operations. With organisations such as the DARPA receiving considerable funding for research into military applications of enabling technologies, there may be opportunities for Australian researchers to collaborate with organisations in the US and other countries. This will ensure Australia remains at the forefront of research in this area. DARPA are currently investing heavily in enabling technology development for defence and military applications. These include: Nanoelectronics, optoelectronics and magnets for:

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Department of the Prime Minister and Cabinet (2009) The National Security Science and Innovation Strategy

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Network centric warfare Information warfare Uninhabited combat vehicles Automation/robotics for reduced manning Effective training through virtual reality Digital signal processing

Nanomaterials for: High performance, affordable materials Multifunction, adaptive (smart) materials Reduced maintenance

Bionanotechnology for warfighter protection through: Chemical/biological agent detection/destruction Human performance/health monitor/prophylaxis

Human Enhancement and Protection


In a similar manner to general society, enabling technologies have the ability to enhance many aspects of defence and military personnel. Opportunities for enhancement include improved pharmaceuticals, advances in combat medical care, advanced sensors, new lighter and stronger materials, amongst others. As with applications in general society, military applications of emerging technologies could also raise ethical concerns. An example of pharmaceutical applications for warfighters includes advances in biotechnology to manipulate circadian rhythms to enhance pilot alertness on long missions. Further research is also being conducted to increase soldier awareness out to several days without adverse effects, whilst also allowing for rapid recovery. Other applications involve the development of foods that can provide vaccines and nutrients to soldiers more efficiently. Below is a general list of areas where enabling technologies may enhance future warfighters: Extreme hardened endurance. Enhanced performance. Artificial life, immune systems and intelligences. Self-healing and adaptive materials for protection and performance enhancement. Biochip / integrated implants. Extended sensory capacities. Integration of humans and autonomous intelligences including brain-computer interface for equipment and weapons control. Nano-enhanced tissue for trauma applications and human enhancement.
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Future advances in biotechnology will also improve the protection of both the general public and military personnel from deadly biological agents. The creation of broad-spectrum vaccines may provide the ability to vaccinate a country's entire population against endemic diseases and biological weapons.

Sensors
A key area of importance for defence and security applications of enabling technologies is sensor technology. Examples currently under development include nanosensors and the use of synthetically produced biosensors that are many times more sensitive than existing sensors for the detection of a wide range of chemical and biological threats. Much of the sensor development for military use is coming from commercial applications such as medical devices. Another area of development is the "lab on a chip" that incorporates rapid biological agent detection. Enabling technologies have the ability to enhance the following characteristics of existing sensors: Low-power requirements. Compact and lightweight. Ability to be incorporated into distributed networks. Sensors utilising polymer electronics, carbon and silicon nanotubes and biomimetics (electronic noses). It is important to note that the new generation of sensors will need to integrate several fields of enabling technologies. The biotechnology, materials and micromachining techniques required to assemble an integrated biosensor are complex and require further development.

Materials and Equipment


In the short term, the application of enabling technologies in defence and security products and services will be via enhancing existing products with new materials such as nanomaterials and nanobiomaterials. Applications of nanomaterials in defence applications include: Enhancements to stealth, human protection, intelligence, energy systems, hazardous environments. Memory materials and fabrics. Living organisms as biofoundries and nanomechanical systems. Biologically aware materials.
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Explosives and propulsion systems. Aerogels, batteries and fuel cells. Nano-optical materials in photonics and organic LEDs. Nanostructures in electrochemical systems. Enhanced nanostructured energetic materials. Applications for biotechnology based materials include: Camouflage biomaterials with stealth and non-illuminating characteristics. Biomarkers in combat identification. Lightweight and self-healing armour produced from bio-derived and inspired material. Bio-derived and inspired materials for increased mobility of humans, vehicles and robots. Performance enhancements through neuro interaction with prosthetics. Nanobiotechnology for use in radiation resistant electronics. Synthetically produced enzymes to fight infectious agents and neutralise toxic chemicals. Naturally, these new materials will find their way into military and security equipment, promising advances over current products and altering the way military operations are conducted. Soldiers are currently burdened with carrying large amounts of equipment and weight, restricting movement and increasing fatigue. The applications of enabling technologies has the potential to reduce weight in existing components such as reduced weight of mobile power generation through biological and synthetic photovoltaics and reducing the power requirements of existing products leading to fewer batteries to be carried and disposed of in the battlefield. Future applications involve improvements to the exoskeleton to allow soldiers to carry heavy loads without fatigue or physical injury and incorporating power generation.

Robotics
Short term targets for robots in military applications are to reduce the risk of injury or death in dangerous missions. A current example is bomb detection, particularly in current conflicts in Iraq and Afghanistan where improvised explosive devices have been used in unprecedented levels. Research into long term applications of robots includes smart autonomous robots that incorporate distributed sensors and intelligence. Longer term research includes

neurobiologically inspired robots that have control systems based on principles of the nervous system. Research is also being conducted into the mechanics and biology of flight to be used in the design of software for flight control systems. Other applications of robots incorporating biomechanically inspired technologies include:
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Enhanced vehicles to be used to conquer complex terrain better and more efficiently. Better underwater performance. Robotic climbers. The use of robots in confined spaces and squeezing through cracks.

8.10. Summary
Table 16 provides a summary of how the enabling technologies discussed in this paper can contribute to addressing a number of Australias major national challenges. It is important to note that when assessing the potential benefits that enabling technologies can bring to addressing national challenges, that they are not considered in isolation. In many cases, breakthroughs in one area will bring about flow on effects and complimentary benefits to other areas. For example, developments in the biofuels have the potential to address energy security issues, however, will also benefit climate change issues, improve resource efficiency and reduce energy costs, which subsequently increases competitiveness.

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Table 16: Contribution of Enabling Technologies to National Challenges Matrix


NATIONAL CHALLENGE Mining NANOTECHNOLOGY Oil and gas sector could use nanosensors to assist in the high throughput detection of uncharted oil and gas reserves. BIOTECHNOLOGY GM plants and microbes for bioremediation of polluted mine sites and wastewater Biomining will improve environmental and production performance of mines Bioleaching in copper and gold mining Biohydrometallurgy to recover metals from sulphide ores Microbial enhanced oil recovery (MEOR) to increase oil recoverably Climate Change The potential for nanodevices and engineered nano materials to convert carbon emissions to molecules that can be re-used e.g. artificial photosynthesis Metal oxides for slurry additives Geoengineering technologies may be able to re-habituate specific environmental ecologies that may be threatened Nanomaterials used in advanced filtering and other applications for water purification and recycling Energy GM technology will help agricultural crops better adapt to the effects of climate change. Biofuels can supplement and replace carbon intensive fossil fuels for some applications. Bioremediation to reduce, eliminate, contain, or transform benign products contaminants present in soils, sediments, water, or air. Biosensors to detect or measure chemical compounds Pre-treatment for chemicals or fuels to reduce harmful compounds. Nanomaterials may provide lighter, stronger and increased thermal and electrically efficient materials Nanomaterials: more efficient power plants and enable new energy production systems based on renewable sources Nanomaterials and nanostructures providing cleaner coal, fuel cells, portable solar cells,
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SYNTHETIC BIOLOGY Harvest Coal bed methane through synthetic microbial digestion Advances in biotechnology to increase leaching rates, increased tolerance and to improve oil recovery

Biosensors to monitor soil for nutrient quality or environmental degradation Integrated systems to manage soil nutrients and water for crops and animal farms based on the outputs of the biosensors e.g. precision agriculture

Biofuels provide clean and renewable fuel sources. Organic waste conversion to fuels e.g. biogas Integrated energy storage systems Harnessing biological systems for energy production Self-powered devices and systems
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Biofuels: cellulosic ethanol, super-fermenting organisms Bioalcohols: butanol Photosynthetic algae: synthetic / modified algae Bio-hydrogen: extracting hydrogen from water Making electric current from synthetic living
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portable energy cells, integrated solar cells, efficient lighting Nano based metal/ organometallics to improve catalytic converters Nanomaterials being used to improve storage capacity in batteries Nanoparticles in fuel cells for enhanced catalytic properties Ceramic nanopowders to improve fabrication of electrode membranes in fuel cells Increasing energy efficiency: lightweight materials in transport, solid-state lighting, selfoptimising motor systems, smart roofs with reflectivity control and energy-efficient separation membranes. Hydrogen production, storage and use. Nanostructured catalysts to improve the efficiency of reforming and gasification in producing hydrogen Carbon nanotubes: aid in accelerating chemical reactions and catalysis and improving the efficiency of chemical processes nanostructured organic photovoltaics to reduce costs of PV systems Aerogels for the use of smart glazing Resource Efficiency New engineered nanomaterials can substitute or replace rare elements or diminishing raw materials Nanofabrication can provide new designs that minimise waste material but also promote reuse and efficient lifecycle management GM plants will reduce resource input requirements in agriculture. Bioenzymes will improve efficiency of industrial processes. Biofuel technologies convert waste byproducts into fuel. Catalysts for conversion of natural gas
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cells Development of crops tailored to bioenergy production with increased oil content or maize and new processes that improve the conversion of biomass to fuel

Bio-mass: more efficient feed-stocks Bio-remediation: microorganisms to accumulate and/or degrade substances Environmentally friendly microorganisms to minimise water use and replace chemical fertilisers

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Development of faster-growing trees for timber, pulp, paper, and biofuel production Replication of tropical growing efficiencies in more arid conditions Health and Wellbeing Nanomaterials in tissue engineering, medical imaging, tissue/organ regen, nanobio, smart implants, bio-materials, medical diagnostics, drug delivery, nano-arrays Nanodevices for cancer therapy: silica-coated micelles, ceramic nanoparticles, dendrimers and cross linked liposomes Nanodevices that releases drugs in response to over-expression of undesirable proteins. Nanosensors: treatment of periodontitis and other oral and systemic diseases, DNA sequencing and nucleic acid detection, genomic testing, proteomics, pharmacogenomics, pathogen and virus detection, blood screening, respiratory monitoring, glucose testing and in vivo radiation monitoring Nanodentistry: periodontology, implantology, prosthetic dentistry, orthodontics and endodontics, tooth regeneration, dental root implants, soft and hard tissue reconstruction using nanfibrous biomimetric membranes. Nanoparticles to improve sunscreens and cosmetics Silicon Quantum dots for in-vitro diagnostics, gene expression assay, medical imaging Carbon Nanotubes for scanning probe tip, atomic force microscope and drug delivery Nanoengineered structures for prosthetics Nanocomposites in integrated diagnostic
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Identifying drug targets, improve drug delivery, tailor prescribing practices to the genetic characteristics of patients Genomic medicine will provide improved patient outcomes, and personally targeted therapeutics Regenerative medicine using stem cell technology will address previously incurable diseases RNA based therapeutics will expand the number of druggable targets, improving patient outcomes New biotechnology tools and platforms will enhance our understanding of disease biology Improved diagnostic tools will leverage discoveries in epigenetics, genomics, bioinformatics and microarray technology to better characterise disease Therapeutics - small molecule drug development Diagnostics - vitro diagnostic tests and molecular genetic based tests Pharmacogenetics Medical devices - modified autologous cells to avoid the need for ongoing injections.

Medicines: metabolic engineering, efficient, large-scale screening methods Vaccines: accelerate the development of vaccines Personalised Medicine: molecular classification of tumours, smart proteins and programmed cells Biosensors: collection of quantitative dynamic data in minimally invasive ways Disease biomarkers for those working on biomedical research

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devices Supramagnetic nanoparticles for use in MRI detection Identification of biomarkers will help predict disease susceptibility Enable point-of-care diagnosis as well as the development of personalised medicine Genetic Nanomedicine for Gene Detection and Gene Delivery Nanotechnology-Based Regenerative Medicine: Cell Sheet Engineering Oncology Nanomedicine for Early Diagnosis and Early Treatment in Cancer Pharmacological Nanomedicine for Drug Delivery and Drug Design Cardiovascular Nanomedicine for Heart and Vascular Diseases Neurological Nanomedicine for Neuroscience Research Food Security Nanoagricultural: agrosensors to monitoring the health of crops and farm animals Nanosensors for monitoring spoilage bacteria and other indicators in the food industry High-yield, drought, disease, salinity and high temperature resistance for plant feedstocks Herbicide tolerance and pest resistance for barley, sugar beet, peanuts, peas, potato, rice, and safflower Enzymes to improve digestibility and nutrition in animal feed Plant diagnostics for early diagnostics to identify a plant disease and treat it before it causes significant crop and / or economic damage. Livestock, poultry and aquaculture industries: breeding, propagation and health. Marker assisted selection to improve the
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Metabolites, health products, genetically engineered preservatives flavours and fragrances Insecticides and pest-resistant varieties of honeybees and diagnostic tests for pathogens that attack honeybee hives.

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accuracy and speed of conventional animal breeding programs Somatic nuclear transfer cloning National Security Gold core oligonucleotides for bio-defence Nanosensors for military and security use for detection of biological and chemical threats Biotechnology tools and platforms (e.g. DNA sequencing technology) may have applications in biometric security devices Biological electronic interfaces and implantable RFID tags for monitoring the movement of specific threats Production of biofuels and bulk and specialty chemicals; enzymes, solvents, amino acids, organic acids, vitamins, antibiotics, and biopolymers Chemical production: substitute one or more traditional chemical steps; lower temperature and pressure, and milder pH conditions, lower energy inputs, lower waste output and reduced environmental impacts New biocatalysts and advanced fermentation processes that are faster, less expensive and more versatile Biobased chemicals for the production of packaging and containers, fabrics and consumer durables. Ezymes for a range of industrial processes; one-step synthesis of high-value chemicals and plastics using microorganisms in bioreactors; and the production of high energy-density biofuels from sugar cane and cellulosic crops. Conversion of industry waste in CO2 or water Bio-surfactants Processing aids in food manufacturing Biosecurity: unique tagging of genetic codes

Global Competitiveness

Nanoscale electronic memory applications Nanoparticles for performance coatings Nanowhiskers for moisture wicking and stain resistant apparel Carbon Nanotubes for polymer additives, carbon composite fillers, electrodes, transistors, sporting goods, super capacitors, efficient electricity and heat conductors. Advanced optical lithography tools (produce nanoscale features on microelectronic devices) Smart nanomaterials which feature intrinsic properties and added properties Nanowires in circuitry such as micro/nanofluidic systems

Source: AIC, 2011

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9.0 INFLUENCES AFFECTING THE ADOPTION OF ENABLING TECHNOLOGIES


This section summarises the major themes of this enabling technologies roadmap report. It also highlights major influences affecting the adoption and development of enabling technologies.

9.1. Challenges in the Uptake of Enabling Technologies in Australia


The next decade promises the emergence of revolutionary enabling technologies that have the potential to provide new opportunities, deliver new applications, influence existing

manufacturing practices, develop new products and services, and solve complex societal challenges. However, to obtain significant value from enabling technologies they must first be successfully translated, commercialised and adopted. Therefore, a number of factors have been identified that influence the successful adoption and utilisation of enabling technologies. Figure 20 outlines an integrated model of enabling technologies and the influences determining successful adoption and utilisation. Figure 20: Integrated Enabling Technologies Model

Source: AIC, 2011

The key factors that influence adoption and utilisation of enabling technologies are discussed in the following section.

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9.2. Market-pull Commercialisation


Commercialisation of technologies and scientific discoveries traditionally has involved technology-push approaches, generally through research organisations that have developed the particular technology. Numerous case examples have shown that traditional technology transfer has been a difficult pathway in commercialising new technologies. New concepts in commercialisation that have emerged in recent years involve demand driven market-pull strategies. Although the concept of market-pull commercialisation is relatively new, it offers comparatively higher opportunities for successful commercialisation of new technologies because it takes into consideration the existing needs of the market represented by commercial organisations involved in product and services development. Successful commercialisation of enabling technologies therefore will be dependent on fulfilling the needs of the market in developing new products and services or addressing existing problems and challenges. Enabling technologies are currently in an emerging stage of development and integration into other industries. At this point of an emerging sectors life cycle, particularly in a high technology industry, market forces are traditionally a mixture of market pull and technology push. In the early stages, research and technologies breakthroughs necessitate a technology push approach and other industries are educated and informed as to the benefits to their market segments. It is not until this critical mass of education and knowledge is reached that the industry will be market pull driven.

9.3. Absorptive Capacity


The absorptive capacity of an organisation is defined as its ability to recognise, exploit and integrate external knowledge for its own use. 253 A number of factors exist that can effect an organisations absorptive capacity and adoption. A firms prior related knowledge enables it to recognise valuable new information, assimilate it and apply it to commercial ends. Therefore, a firm with a better developed knowledge base in a particular field will have a higher absorptive capacity for new opportunities. 254 Absorptive capacity allows firms to pursue projects with a higher probability of success due to their superior knowledge. 255

253

Cohen, W. M., & Levinthal, D. A. (1990) Absorptive Capacity: a New Perspective on Learning and Innovation. Administrative Science Quarterly, 35(1 (Special Issue: Technology, Organisations, and Innovation)), 128-152.

Hine, D. and Kapeleris, J. (2006) Innovation and entrepreneurship in biotechnology, an international perspective: Concepts, theories and cases. Edward Elgar Publishers UK.
255

254

Deeds, D.L. (2001) The role of R&D intensity, technical development and absorptive capacity in creating entrepreneurial wealth in high technology start-ups, Journal of Engineering and Technology Management, Vol. 18, pp 29-47

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A key aspect of absorptive capacity is the ability to recognise an opportunity arising from new knowledge about technology, a customers needs, or market trends. A firm will be better placed to uptake a new enabling technology when it possesses the absorptive capacity to recognise the potential value created from the exploitation of the new technology in servicing the needs of customers and the market. Effective management of technology acquisition involves: 256 Understanding technology needs in relation to strategic plans. Technology roadmapping, competitive analysis and complementary internal capabilities are important

considerations. Identifying external technology through mechanisms such as searches, networks, brokers and alliances. Evaluation and assessment of technology leads. Strong internal expertise is needed to evaluate value and internal resources needed to exploit it. Cross functional team and objective assessment criteria are used. Valuation of the technology which considers costs to further develop and implement the technology. Developing a technology agreement such as through licensing, collaboration or an alliance framework. Metrics for measuring success. As discussed above, absorptive capacity is related to the lifecycle stage of relevant industries. It is a function of technology push and market pull forces as well as the overall general knowledge of emerging technologies such as enabling technologies discussed in this report.

9.4. Government Support for Research and Enabling Technologies


Government supports and funds research activities as part of its commitment to the development of the highest-quality research that leads to the discovery of new ideas and the advancement of human knowledge through education and knowledge transfer. This takes the form of direct funding for research, financial assistance towards facilities and equipment that researchers need to be internationally competitive, support for the training and skills development of the next generation of researchers and incentives for talented researchers to collaborate with other researchers nationally and internationally. Research is supported at

256

Slowinski, G. et al (2000) Acquiring External Technology, Research Technology Management, September-October, Vol. 43, No. 5, pp 29-36

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various stages, with varying levels of commitment between discovery and application-based research, subject to the preferences underpinning the prevailing policy settings of the day. The emergence of enabling technologies has been influenced by singular discoveries in a range of fields that when aggregated or integrated offer unique platform capabilities that provide a further and more efficient means to create greater leaps in performance, productivity and knowledge outcomes. The enormous impact and future potential for research, science, innovation and commerce is immense, drawing government attention and focus.

9.5. Convergence of Technologies


Convergence of disciplines, particularly in nanotechnology, biotechnology and synthetic biology, has occurred over time as interdisciplinarity increases through enhanced interrelatedness and interdependence of prior disciplines. The integration and convergence of prior disciplines creates new disciplines that develop new technological trajectories. Convergence leads to technologies that are applicable across a wide range of applications, and subsequently become the enabling technologies that support the emergence of new disciplines. The need to master the complexity of combining a number of disciplines, which at the same time are evolving, is the challenge at the heart of interdisciplinarity. The National Science Foundation commented on the importance of convergence and integration of the emerging scientific disciplines. 257 As the sciences and arts emerged half a millennium ago, it was common for scientists to be masters of several fields simultaneously. Today, however, specialisation means that no one can master more than a tiny fragment of human creativity. The sciences have reached a point at which they must unify if they are to continue to advance. This will drive a comprehensive understanding of the structure and behaviour of matter from the nanoscale up to the most complex systems, the human brain. The most exciting opportunities for the convergence of nanotechnology, biotechnology and synthetic biology are the interactions and convergence with the cognitive sciences. Cognitive science is the study of the mind as an information processor and therefore has a direct correlation with synthetic biology, particularly with respect to convergence with the ICT industry. As synthetic biology develops the ability to produce sufficiently complex synthetic systems, its interactions with psychology, artificial intelligence, philosophy, neuroscience, linguistics, anthropology, sociology, and education will produce new convergent technologies and their

Roco, M. and Bainbridge, W., (2002) Converging Technologies for Improving Human Performance Nanotechnology, Biotechnology, Information Technology and Cognitive Science, National Science Foundation

257

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applications in a range of areas such as education, medical prostheses, defence force applications for the soldier of the future and raise challenges for the international sporting industry, as well as the more problematic area of human enhancement in general. The confluence of technologies that now, through the development of nanotechnology, biotechnology and synthetic biology and convergence with the cognitive sciences, offers the promise of improving human lives in many ways. According to the National Science Foundation, examples of opportunities includes improving work efficiency and learning, enhancing individual sensory and cognitive capabilities, revolutionary changes in healthcare, improving both individual and group creativity, highly effective communication techniques including brain-to-brain interaction, perfecting humanmachine interfaces including neuromorphic engineering, sustainable and intelligent

environments including neuro-ergonomics, enhancing human capabilities for defence purposes, reaching sustainable development using enabling technologies and cognitive science tools, and ameliorating the physical and cognitive decline that is common to the ageing mind. Developments in systems approaches, mathematics, biological processes and computation (including general ICT) allow for the understanding of the natural world and cognition in terms of complex, hierarchical systems. This convergence of technologies means that through a coevolutionary process, progress in one area accelerates progress in many others. This is particularly prevalent in new technologies for studying brain function using nano and synthetic biology techniques. Through this process, the existing boundaries between industry sectors become increasingly blurred. The convergence of emerging technologies with the cognitive sciences and the current evolution of technical achievement means that improvement of human performance through integration of technologies is becoming increasingly possible. In broad terms, the integration of cognitive sciences into emerging technologies will have long term implications to human activity such as working, learning, ageing, group interaction, and human evolution. The natural progressions of any of these fields could result in a turning point in the evolution of human society. However, it must also be noted that convergence of enabling technologies also brings with it significant issues. For example; regulatory changes, funding requirements and skills development amongst others. These areas are discussed in detail throughout this report.

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9.6. Collaboration between Research and Industry Sectors


As discussed above, the enabling technologies sector is currently in a technology push phase of research and commercialisation, which means that the collaboration between research and industry sectors is of utmost importance. Australia is placed at the bottom of Organisation for Economic Cooperation and Development (OECD) countries when measuring the level of collaboration between industry and the research sector. Collaboration between industry and academia is an important driver of national innovation capacity, enhancing knowledge exchanges, and increasing the impact of research outcomes in global markets. Establishing networks, not only nationally but also internationally and across industry sectors, is one of the key drivers of innovation. Additionally, collaboration amongst different scientific disciplines encourages the exchange of knowledge and ideas that create new opportunities at the intersections of disciplines facilitating convergence and the development of new enabling technologies. Open innovation is the process by which organisations use both internal and external knowledge to drive and accelerate their internal innovation strategy in order to fulfil existing market needs or to access new market opportunities. Collaboration plays a key role in open innovation involving the engagement of external organisations to co-create future opportunities, technologies and products that address existing or new markets. By encouraging and facilitating an open innovation paradigm, organisations may have the inclination to seek opportunities outside their organisation and be more receptive to adopting and utilising enabling technologies.

9.7. Incremental, Radical and Transformational Innovation


Innovation can be described as incremental, radical or transformational 258 . However, innovation can also be continuous or discontinuous, affecting existing processes in an organisation 259 . An extension of this thinking describes innovation as incremental improvements punctuated by discontinuous change (radical innovation) 260 . More recently the concept of disruptive innovation

258

Cooper, R.G. (2001) Winning at New Products: Accelerating the Process from Idea to Launch, Third Edition, Perseus Publishing, Cambridge, Massachusetts.

Tushman, M. and Anderson, P. (1986) Technological Discontinuities and Organizational Environments, Administrative Science Quarterly, Vol.31, Issue 3, pp.439-465. Tushman, M.L. and OReilly, C.A. (1997) Winning Through Innovation: A Practical Guide to Leading Organizational Change and Renewal, Harvard Business School Press, Boston.
260

259

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has been described which can have a transformational effect on existing organisations, markets and systems 261 . While product life cycles in enabling technologies vary in time, they are comparatively long, taking an average of eight to twelve years from idea to commercialisation. Innovation speed, a fundamental competitive factor in many industries, is a significant challenge to enabling technology based companies. Based on the R&D cycle, innovation speed refers to the length of time it takes for a product to move from idea to commercialisation 262 . Limitations exist in the ability to reduce R&D cycles in enabling technologies, and this is one of the key barriers to successful commercialisation and adoption of enabling technologies. The main area in this respect is scalability the ability to replicate findings in the laboratory on larger commercial scales. The successful development of new enabling and converging technologies and their applications will predominantly emerge from incremental innovation, however, radical and transformational innovation will also have an impact on new developments.

9.8. Product Innovation versus Market Innovation


Product innovation is generally the focus of breakthrough technology innovations. Firms have brought new products to market by successfully commercialising breakthrough technologies. However, it is not always the product innovation that creates significant success for a firm. An emerging area of practice is business model innovation which allows firms to enter into new market spaces. Business model innovation allows firms to leverage their existing resources, better understand their markets and to extend their domination into new or adjacent markets. A new business model may require a new value network where interaction occurs with customers, suppliers and competitors. The practical application and commercialisation of enabling technologies to solve existing problems and to develop new products and services, will generally be more successful if market innovation is a key focus. Market innovation rather than product innovation will facilitate better understanding of customer and stakeholder needs thereby facilitating successful adoption and uptake of enabling technologies by the market.

261

Christensen, C.M. and Overdorf, M. (2000) Meeting the Challenge of Disruptive Change, Harvard Business Review, March, Vol.78, Issue2, p.66. Kessler E.H. and Chakrabarti A.K.(1996). "Innovation speed: A conceptual model of context, antecedents, and outcomes." The Academy of Management Review 21(4), 1143-1191.

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9.9. Knowledge of Enabling Technologies


The importance of knowledge and education of enabling technologies has been discussed at length in this report. Organisations that are well informed of the advantages provided by enabling technologies are more likely to adopt new technologies. Commercially driven organisations are willing to consider adopting enabling technologies if they address a need in the marketplace and are commercially feasible for the organisation. Organisations that had previous negative experiences or had negative views are less likely to adopt enabling technologies. At times the short-term commercial focus of organisations is in conflict with longer-term technology investments. An important factor influencing uptake of enabling technologies is public attitudes. These influence markets, industry confidence, regulatory responses and public policy. Given the novelty and disruptive potential of enabling technologies, they are often subject to controversy. Controversy may be focussed on potential risks to health or environment, specific ethical issues raised, e.g. when technologies challenge understandings of what it is to be human (see section 9.12), or broader societal issues about the role of technology in society, societal impacts and technology governance. 263 There is international recognition of the importance of promoting public awareness of enabling technologies and of democratic engagement with the wider community in decision making about technology development. 264 Under the National Enabling Technologies Strategy, the government supports public awareness and education about enabling technologies, including a dedicated website (techNyou) and a curriculum-linked education resource. NETS has also recently developed a community engagement framework (STEP Science & Technology Engagement Pathways) that seeks to bring members of the wider community into dialogue with those making decisions about enabling technology development, management and future directions.

9.10. Regulatory Environment


Any new technologies bring potential risks along with potential benefits. The regulatory environment is an important factor in managing these risks. Decisions about the regulatory environment take into consideration various factors including the impact on innovation, public perception about apparent risk/benefit balance and capability to enforce any regulation.

263

Directorate-General for Research, European Commission (2007). Taking European Knowledge Society Seriously. Report of the Expert Group on Science and Governance to the Science, Economy and Society Directorate. House of Lords (Select Committee on Science and Technology) (2000). Science and Society. United Kingdom Parliament, London. Available at: http://www.publications.parliament.uk/pa/ld199900/ldselect/ldsctech/38/3802.htm

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The topic of regulations in an emerging industry sector always incites opinions from many different perspectives. Regulatory requirements and frameworks are often perceived as either a commercial risk that can sometimes be a hindrance to innovation or present an opportunity that defines the operating guidelines for business to exploit market opportunities. This is particularly relevant for enabling technologies. Regulation and the predictability of the regulatory environment can influence the direction of enabling technology research, the type of research that is commercially viable, and the costs of research and development. It establishes the guidelines for the safety, efficacy and effectiveness of nanotechnology and biotechnology products. Many enabling technologies are regulated to protect humans, animals, plants and the environment. Research to establish environmental and consumer safety is required to meet regulations for biotherapeutics, animal therapeutics, GM plant varieties, and GM

microorganisms intended for open release. Products that are perceived as less harmful to humans or the environment are less strictly regulated. These include in vitro diagnostics, nonGM biotech crops, and GM microorganisms for use in a closed bioreactor. As a result, these products can typically be brought to market relatively quickly compared to products that are highly regulated.

Effects of Regulation on Innovation


High regulatory costs can provide a competitive advantage to large firms compared to small or medium sized firms. This is especially the case in agriculture, where the costs of bringing some products to market exceed the financial capacity of small firms. High regulatory costs can also impede some types of innovation, especially when they have relatively small markets. Many environmental applications of industrial biotechnology, such as bioremediation, have small markets because the microorganisms need to be adapted to local temperature, humidity, and soil conditions. Regulation that effectively prohibits the use of a technology can have more damaging effects on innovation. The de facto moratorium on growing GM plant varieties in Europe is an example of the influence of regulation to alter long-term market structures and future business opportunities. A similar decline in agricultural biotechnology research occurred after several Australian states implemented a moratorium on GM plantings. An Australian Federal Government review

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concluded that the moratoria were having negative effects on the agricultural and research sectors. 265 For health applications of biotechnology, technical developments and high research costs create a different set of regulatory challenges, namely the need to balance risks and benefits with the costs of developing health treatments. Experience in the long-established field of drug regulation shows that the balance of risks and benefits can change abruptly as science develops and experience is gained, requiring adjustments to health regulations. The type of regulatory requirements that could be enforced in the future for regenerative medicine based on stem cell therapies and tissue engineering could also require adjustments to health regulations. One perspective is that these technologies should be regulated as pharmaceuticals, requiring the submission of full clinical trial data, while an alternative perspective is that they should be more lightly regulated as medical devices. An argument in favour of lighter regulation is that regenerative medicine based on the patients own tissues or cells would have a very low rate of adverse immune system reactions, thereby reducing risks.

Regulatory Barriers
It is not unusual for a clear regulatory environment to lag technology and this is seen in many industries. However, the lack of a clear regulatory environment results in a cautious approach to new technologies in the early stages of an emerging sector. All exporters of products face established regulatory environments overseas, and will need to adapt to meet those regulations in order to sell their products or be excluded from potentially very large markets such as those found in the US and Europe. An example is that GM agricultural crops that are approved as safe in the US are facing significant regulatory hurdles in gaining access to the European Union. The development and commercialisation of GM crops illustrate a complex challenge facing trade diplomacy - the challenge of regulatory regionalism created by social and economic regulatory barriers.

9.11. Intellectual Property Rights


Biotechnology R&D is performed in the public sector (government research institutes and higher education institutes), by the business sector, and by the private non-profit sector. As such, organisational drivers to discover, invent, protect and commercialise from each of these sectors will vary. Businesses which commercialise products and services in biotechnology,

265

Statutory Review of the Gene Technology Act 2000 and the Gene Technology Agreement, 2006

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nanotechnology and synthetic biology arenas are capital intensive by nature and generally have comparatively long and costly lead times to product development. In relation to patenting in the nanotechnology sector, a correlation between the technical breadth of an individual patent (and thereby the size of the marketplace to which the patent is relevant), and the intensity of the investment the applicant is willing to make in its protection has been observed. That is, the more commercially viable nanotechnology patent portfolios are technically broader in nature. 266 Technically, the fields found to have the most

commercialisation potential are more chemical in nature, i.e. inks, paints, coatings and cosmetics. On the other hand, non-chemical nanotechnologies and nanotechnical applications, despite heavy patent activity and associated R&D activity, would appear to be more immature, and can perhaps be seen as the reason for the reduction in activity by corporate entities in the last few years. In addition to organisation drivers, emerging technology areas are often highly complex as they can play on multiple technologies and disciplines, e.g. synthetic biology and nanotechnology. Adding further to the technology complexity is that a market may not yet exist. One ramification of such a complex and costly environment is the need for protecting technology investment by the use of patents. The primary purpose of patents is to provide incentives for innovation. Intellectual property rights (IPRs) are attractive to business because they create the prospect of recouping their investment by charging others monopoly prices for access to their intellectual capital and preventing others (free riders) from taking away their competitive advantage. Governments grant IPRs for limited periods to enable recovery of investment and innovation. In return, the government, and the public are taught how to work the invention and enable further innovation in many related as well as unrelated applications. The knowledge taught in the patent literature is globally disclosed, vast and is for all to learn from and access at the appropriate time. With regards to human gene patenting, ethical-based objections have been raised questioning its eligibility for patent protection. Recently in the US, a Federal Appeals Court has reconsidered the validity of gene-based patents to patentee Myriad Genetics for diagnostic breast cancer tests, and in doing so, stirring public opinion on the ethical rights of patenting isolated DNA in the process. 267 Perhaps striking a balance, the recent decision found that isolated

266

White, E., (September 2011) Nanotechnology IP Landscaping Analysis, prepared for the Department of Innovation, Industry, Science & Research, Cth of Australia, Thomson Reuters IP Consulting. Association for Molecular Pathology et al v US Patent and Trademark Office et al, 702 F.Supp.2d 181 (S.D.N.Y.2010)

267

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DNA was patentable, however diagnostic methods comparing or analysing DNA sequences, e.g. BRCA1 and BRCA2 genes were not. The same gene patent debate continues in Australia as the Federal Government is currently considering whether to ban the patenting of biological materials, the subject of a proposed amendment to the Australian Patents Act 1990 (Cth) (Patent Amendment Human Genes and Biological Materials Bill 2010). A Senate Committee report was in preparation to address this issue. There is also corresponding action before the Australian Federal Court 268 with the case set for hearing in February 2012. Further to human gene patenting discussed above, broader areas of ethical debate exist that include patenting of non-human genes, patentability of biological materials and other forms of life. 269

Regulation and Legislative Environments


Various factors influence the development and adoption of enabling technologies. Government regulation has long added to the required product development pathway. This is most visible with products that are directed to animal health, and more so to human health. In recognition of the overall regulatory delays (e.g. patent, industrial regulations, health regulation, a number of jurisdictions, including Australia and the US, offer incentives by way of expedited patent examination to assist with the lengthy process. In the US, expedited examination via the patent prosecution highway can now be requested without incurring extra official fees and green technology inventions are considered to be suitable for expedited examination and automatically qualify. On the other hand and in support of the view that patent rights inhibit innovation, changes in patenting legislation are routinely made in Australia. For example, in 2006, the Springboarding for Pharmaceuticals provisions opened up exploitation of pharmaceuticals patents for the purposes of gaining regulatory (globally) approval. Currently, the Intellectual Property Laws Amendment (Raising the Bar) Bill 2011 is seeking to limit patentees rights and exempt patent infringement of research and experimental activities. The very complex nature of the emerging technologies has given rise to its own burdens. The multi-disciplinary nature of nanotechnology and biotechnology requires patent expertise to be drawn from several different fields when partnering/collaborating, patenting, assigning and

268 269

Cancer Voices Australia & Anor v Myriad Genetics Inc & Ors (Federal Court, NSD643/2010) Parens, E., et al., (2009) Ethical Issues in Synthetic Biology, Woodrow Wilson International Centre for Scholars

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licensing out new technologies. For example, a recent study by the U.S Department of Agriculture 270 highlighted two problems in the patenting of synthetic biology research and products. Firstly, the creation of overly broad patents may foster monopolies, hamper collaboration and stifle innovation by other researchers; and, conversely, the creation of unduly narrow patents may impede subsequent applications because of the complexity of licensing arrangements required to deal with multiple patent owners. To address some of this complexity, alternatives to conventional patenting arrangements are being utilised, for example the sharing of information in patent pools by the pharmaceutical industry.

Commercialisation
Patent thickets have been identified as a specific barrier to commercialisation of enabling technologies.
271

They are described as a dense web of overlapping IPRs that organisations

must hack their way through in order to commercialise new technology 272 . Thickets are a consequence of multiple upstream (core technology) patents. As an example, a number of isolated genetic materials covered by a series of patents of related technical nature (core technology) may be required in developing further inventions such as diagnostic tests or pharmaceutical products from which they depend (downstream applications and products). 273 Recently, to address patent thickets, commercial entities (for example, http://www.intellectualventures.com) now license grouped technologically-based patent portfolios to provide invention rights to users. This serves to offer users a competitive advantage by leveraging from pre-formed patent rights, ensuring freedom to operate in the technology space and thereby reducing exposure to infringement actions or blocking access to the core technology. However, in an alternative view, the creation and use of thickets or other patenting strategies provide a legal right in which many Australian researchers rely upon to level the playing field globally and provide the requisite protection and business diligence to attract investment for commercialisation purposes. Many in the field advocate openness and minimal patenting, while others indicate that in some cases, having a strong IP regime that you can control is the best way to protect openness.

270 271

Rejeski, D., (2011) Synthetic Biology A Trip Around the Neighbourhood, U.S Department of Agriculture.

Australian Government, Australian Law Reform Commission, Patents and Biotechnology Industry, Barriers to Commercialisation, Accessed 02/09/2011, Available at: http://www.alrc.gov.au/publications/18-patents-and-biotechnologyindustry/barriers-commercialisation#_ftnref7
272

Australian Government, Australian Law Reform Commission, Patents and Biotechnology Industry, Barriers to Commercialisation, Accessed 02/09/2011, Available at: http://www.alrc.gov.au/publications/18-patents-and-biotechnologyindustry/barriers-commercialisation#_ftnref7
273

C Shapiro, Navigating the Patent Thicket: Cross Licenses, Patent Pools, and Standard-Setting (2001), 1-2.

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In relation to biotechnology in general, the sharing of genetic materials within the research community is important for the progress of research and development. Living organisms are difficult to describe and often impossible to duplicate from a written patent description. 274 Due to the increased commercialisation of research results, the need for formalise arrangements which govern the transfer of biological or other research materials from the owner or authorised licensee to a third party for internal research purposes has grown significantly. At issue is striking a balance between the need to appropriately articulate the scope of the work, the technical description and the limitations of use to adequately protect intellectual property and the drive to streamline the increasing volume of material transfer agreements (MTAs) required. The use of model or templated MTAs to streamline this process has led to discrepancies involving patent ownership and reach-through claims to subsequent inventions. 275 Related to patenting synthetic biology in particular, the following concerns have been raised: 276 Patents: the world of patents is highly complex, and is particularly so for disciplines which play on multiple technologies such as synthetic biology. Moreover, there are a range of unresolved patent issues that are anticipated to have a major impact in shaping the future of synthetic biology (e.g. patentability, how prior art is applied and nonobviousness tests). In relation to public sector research, unanswered questions as to how university technology transfer offices (TTOs) are developed and how they operate. Interaction and bundling of IP rights: design rights and how they apply to bundled technologies have been raised as a potential issue Database operations: information and materials arising from synthetic biology research are currently being placed in registries or other databases. Concern around how these databases might operate, for example in isolation or integrated has been raised. Copyright: copyright protects originality and expression. In synthetic biology, there is an increasing decoupling of design from manufacturers and processes. The concern is that this may increase the likelihood of copyright issues.

274

Jong, S., Cypress R., (1998) Managing Genetic Material to Protect Intellectual Property Rights, Journal of Industrial Microbiology and Biotechnology 95, 99 Australian Government, Australian Law Reform Commission (2004) Genes and Ingenuity: Gene patenting and human health, (Updated 2010)
275

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9.12. Ethical Considerations


The perceived potential of enabling technologies will drive, and has driven, the development of a wide variety of products and technologies. These technological advances are surrounded by ethical issues that need to be addressed as the industry develops, including how we can or should change ourselves and our environments. Use of these technologies also requires consideration from an overall society and community perspective, for example the socioeconomy in which technological applications are developed and marketed, and the ensuing political implications.

9.12.1.

Human Enhancement

There are potentially significant impacts that can arise from the use of enabling technologies to enhance human life. Ethical debate is particularly important in relation to the use of technology for human enhancement. The topic of bioethics and the associated arguments surrounding human enhancement, particularly through genetic means, is currently a hotly debated topic with a wide variety of opinions. 277 Developments in genetic, genomic, and reproductive technologies have raised many ethical and moral questions. Biotechnology breakthroughs in this area, like genetic engineering, genetic screening, and cloning, are highly profit-driven, delivering personalised services to those who can afford them. Human biotechnology techniques, for instance, can screen fertilised human eggs for specific traits, such as gender, or the propensity to develop certain diseases, allowing scientists to eliminate those that carry undesirable traits. Genetic screening also allows insurance agencies the chance to identify and discriminate against people predisposed toward certain illnesses. Cloning and synthetic biology techniques could allow fast reproduction of these desirable traits. Concerns around human enhancement are usually summarised by considering the question: Once we set off on the project of human enhancement, where or why we should stop? These arguments logically extend to non-genomic applications of human enhancement, including the human-machine interface.

277

Buchanan, A., ( 2011), Beyond Humanity? The ethics of Biomedical Enhancement, Oxford University Press.

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Convergence of GRIN Technologies


Due to the increasing rate of innovation in the new enabling technologies, futurists are predicting that we are approaching a point of convergence between genetics, robotics, informatics and nanotechnology (GRIN technologies) so that machines will increasingly be able to behave like living things and that living things will be increasingly enhanced by machines. The use of GRIN technologies could result in; the enhancement of human intellectual, physical and emotional capabilities; the elimination of disease and suffering; and the dramatic extension of the lifespan. The US Department of Commerce and National Science Foundations report, Converging Technologies for Improving Human Performance 278 predicts that over the next 10 to 20 years: Direct connections between the human brain and machines will transform work in factories, control automobiles, ensure military superiority and enable new sports, art forms and modes of interaction between people Wearable sensors will enhance every persons awareness of his or her health condition, environment, chemical pollutants, potential hazards and information of interest about local businesses, natural resources and the like Machines and structures of all kinds, from homes to aircraft, will be constructed of materials that have exactly the desired properties, including the ability to adapt to changing situations, high energy efficiency and environmental friendliness Formal education will be transformed by an understanding of the physical world from the nanoscale through the cosmic scale. GRIN technologies are also being explored by the US Defense Advanced Research Projects Agency (DARPA) 279 , and can be expected to be taken up by Defense Forces around the world as nations seek to ensure their own competitive advantage in terms of national security. Examples include: The Bioinspired Dynamic Robotics program, for example, mimicking the ability of geckos to walk up vertical walls and hang from ceilings The Mesoscopic Integrated Conformal Electronics program, for example printing electronic circuits on the frames of eyeglasses and helmets, woven into clothes, and

278

Roco, M. and Bainbridge, W., (2002) Converging Technologies for Improving Human Performance Nanotechnology, Biotechnology, Information Technology and Cognitive Science, National Science Foundation Ostman, C., (2010) Visions of the Future: Impacts of Nanotechnology on National Defense, Institute for Global Futures

279

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attaching them to insects, and extending this to antennas, fuel cells, batteries and solar cells The Biological Input/Output Systems program, for example allowing plants, microbes and small animals to serve as remote sentinels, reporting the presence of chemical or biological particles The Brain-Machine Interface program, for example, putting wireless modems into peoples skulls. These applications demonstrate the more radical approach to the possibilities opened up by GRIN technologies and suggests the possibility of transitioning to an engineered evolution of posthumans; beings whose basic capacities so radically exceed those of present humans as to no longer be unambiguously human by our current standards. This drive to transhumanism involves assumptions about: The undeniable competitive advantages that the genetic, robotic information and nanotechnologies convey for economic, medical, educational, military or artistic reasons That the GRIN technologies will enable the augmentation of cognition, metabolism and allow us to become designers of our own evolution That the GRIN technologies will allow us to eliminate pain, infirmity, mental illness and biological cravings, and allow us to have better memory, better immune systems, renewable organs, stronger skeletons, cells that do not age, more muscle mass, increased ability to process vast amounts of information quickly, the ability to speak many languages, an absence of genetic disease and more talent in visual and performing arts. Many of the technologies that are being identified as supporting human enhancement are those initially developed to overcome genetically-based diseases and disabilities, injury, diseases of ageing, and organ and joint degeneration. They can expect to be explored initially in the areas of competitive sport and defense, but are likely to be exploited by individuals seeking a competitive advantage in cognitive and physical human performance. One example of this was the recommendation of a US National Science Foundation report, as far back as 2002, calling for highest priority to be given to the Human Cognome Project, a multidisciplinary effort to understand the structure, functions, and potential enhancement of the human mind. 280

280

National Science Foundation, Converging Technologies for improving Human Performance, June 2002

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9.12.2.

Social Implications

Nanotechnologies may provide new solutions for developing countries that lack access to basic services, such as safe water, reliable energy, health care, and education. However, concerns are frequently raised that the benefits of nanotechnology will not be evenly distributed, and that any benefits associated with nanotechnology will only reach affluent nations. Furthermore, producers in developing countries could be disadvantaged by the replacement of natural products (including rubber, cotton, coffee and tea) by developments in nanotechnology. Their substitution with industrial nano-products could negatively impact the economies of developing countries. Other societal risks from nanotechnology include the possibility of military applications (implants and other means for soldier enhancement) as well as enhanced surveillance capabilities through nano-sensors. Ethical debates in this sphere concentrate on the need and want of using machines to enhance human performance. 281

281

Cozzens, S., and Wetmore , J., (2010), Nanotechnolgoy and the Challenges of Equity, Equality and Development Springer

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10.0 LIST OF ACRONYMS


Bio-SG Bio-synthetic gas BtL Biomass-to-liquids CAGR Compound Annual Growth Rate CDR - Carbon Dioxide Removal CMP Chemical Mechanical Polishing CRC Cooperative Research Centre DNA - Deoxyribonucleic Acid dsRNA double stranded RNA ESF European Science Foundation ETRM Enabling Technologies Road Map GFC Global Financial Crisis GM Genetically Modified GMO Genetically Modified Organisms HESC - Human Embryonic Stem Cells Horizon 1 technologies currently available Horizon 2 technologies currently under development with expected commercialisation within the next decade Horizon 3 Long term (greater than 20 years) technologies and applications HPLC High Performance Liquid Chromatography HVO Hydrotreated Vegetable Oil IB Industrial Biotechnology ICT Information and Communication Technology IPR Intellectual Property Rights iPS Induced Pluripotent Stem IVF in vitro Fertilisation Manufactured nanomaterials nanomaterial intentionally produced for commercial purposes to have specific properties or specific composition. miRNA micro RNA MRI Magnetic Resonance Imaging MTA Material Transfer Agreements Nanomaterial material with any external dimension in the nanoscale or having internal structure or surface structure in the nanoscale. This generic term is inclusive of nanoobject and nanostructured material.
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Nano-object material with one, two or three external dimensions at the nanoscale. This is a generic term for all discrete nanoscale objects. Nanoscale the size range from approximately 1 nm to 100 nm. Properties that are not extrapolations from a larger size will typically, but not exclusively, be exhibited in this size range. For such properties the size limits are considered approximate. NETS Australian National Enabling Technologies Strategy OECD Organisation for Economic Cooperation and Development PGD Preimplantation Genetic Diagnosis R&D Research and Development rDNA Recombinant DNA RNA Ribonucleic Acid RNAi RNA Interference SCID Severe Combined Immunodeficiency Disease SCNT Somatic Cell Nuclear Transfer siRNA - small interfering RNA SME Small and Medium Sized Enterprises SRM - Solar Radiation Management Technical Recession two consecutive quarters of negative economic growth as measured by a country's GDP TTO Technology Transfer Offices US United States of America USD US Dollars UV Ultraviolet

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11.0 REFERENCE LIST


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