“Good things come in small packages,” is a comment weoften hear around Christmas time. For those in the burgeoning fieldof nanotechnology, though, the maxim has year-round relevance. Wedefine nanotechnology as the building of substances and structuresso tiny as to be essentially invisible. A nanometer is onebillionth of a meter. By comparison, a human hair is 80,000nanometers wide. Nanotechnology involves fabricating nanomaterialsand forging them into useful products. At this level, however,material properties change and can spawn unintended sideeffects.

A scarcity of empirical data — especially regarding losses —hampers nanotechnology-related risk dialogue. Nanotechnology is agrowing niche, so there is little litigation or loss history toanalyze. Thus, much of the discussion of nanotechnology and itsmanagement flows from hypothetical examples.

Less murky is the fact that nanotechnology is not a passing fad.It has innovative applications for a range of technologies andsectors, including drug delivery, medical imaging, integratedsensors, and semiconductors. Many believe that nanotechnology canenhance treatment and detection of diseases like AIDS and cancer.Some estimate that, by 2014, nanotechnology will command a globalmarket value of $2.6 trillion and provide jobs for one millionemployees in the U.S. alone.