Nanotechnology: Small Size Equals Big Potential

The ability to manipulate materials and create structures at the molecular level is spurring research in a spectrum of fields--from computing, materials science, and manufacturing, to medicine and diagnostics. Much of the work is still being done in academic laboratories and in big corporations with no near-term plans to launch nano-products. But lately, several new companies have been forming, convinced they can turn blue-sky nanotechnology research into greenback dollars. Their goals range from the deliberately practical to the decidedly high-risk but potentially paradigm-shifting.

Nanotechnology—a term that stretches to fit many types of research, but essentially refers to the process of manipulating matter at the atomic level—was deemed the "Breakthrough of the Year" for 2001 by Science magazine. It's not a brand-new science, though.

Scientists first began looking at the world on a molecular scale—a nanometer is one-billionth of a meter, or about the...

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