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NANOTECHNOLOGY ENTERPRISE IN THE UNITED STATES



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NANOTECHNOLOGY ENTERPRISE IN THE UNITED STATES STRUCTURE AND LOCATION A Thesis Presented to The Academic Faculty by Ajay S Bhaskarabhatla In Partial Fulfillment of the Requirements for the Degree Master of Science in Public Policy in the School of Public Policy Georgia Institute of Technology May 2006 COPYRIGHT 2006 BY AJAY BHASKARABHATLA NANOTECHNOLOGY ENTERPRISE IN THE UNITED STATES STRUCTURE AND LOCATION Approved by Dr Philip Shapira Advisor School of Public Policy Georgia Institute of Technology Dr Diana Hicks School of Public Policy Georgia Institute of Technology Dr Marco Castillo School of Public Policy Georgia Institute of Technology Date Approved April 10th 2006 ACKNOWLEDGEMENTS I wish to thank the members of my thesis committee Dr Philip Shapira Dr Diana Hicks and Dr Marco Castillo for their valuable suggestions and comments on draft versions of this thesis I also wish to thank Dr Jan Youtie and Dr Andrea Ribas for their comments I am thankful to Jue Wang and Dirk Libaers for sharing data on the nanotechnology industry I am also thankful to Erin Lamos for providing helpful comments on my writing style iii TABLE OF CONTENTS Page ACKNOWLEDGEMENTS iii LIST OF TABLES v LIST OF FIGURES vi SUMMARY viii CHAPTER 1 INDUSTRY LOCATION IN AN AGE OF GLOBALIZATION 1 2 LITERATURE ON HIGH TECH INDUSTRY LOCATION 6 2 1 Introduction 6 2 2 Externalities and High tech Industry Location 7 2 3 High Tech Industry Location and Theories of Economic Geography 15 2 4 Market Structure Innovation and Location 21 2 5 Nanotechnology Industry Location 22 2 6 Research Questions and Hypotheses 28 3 ANALYSIS OF NANOTECHNOLOGY INDUSTRY LOCATION 31 3 1 Methodology 31 3 2 Initial Trends in Nanotechnology Research 36 3 3 Tests of Hypotheses 45 3 4 Regression Model 53 4 CONCLUSIONS 60 APPENDIX A Nanotechnology Firms on Market Indices 64 APPENDIX B CREA Definition of Nanotechnology 66 REFERENCES 67 iv LIST OF TABLES Page Table 2 1 Relationship of agglomeration circumstances with economic growth 10



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