The UK Council for Science and Technology (CST) published its Nanoscience and Nanotechnologies Review (PDF) yesterday, warning that the UK risks being "left out in the cold". 

The CST has been reviewing the government's progress on commitments it made two years ago in response to the Royal Academy of Engineering's Nanoscience and Nanotechnologies: Opportunities and Uncertainties report. 

One of the biggest recommendations is that government programmes that support the nanotechnology industry should consider ring-fencing a proportion of budgets for research into the health and environmental impacts of nano-materials.

The report also suggested that the government must streamline its relationship with the nanotech industry to promote better communication.

Simplification of the interaction between government departments, Regional Development Agencies and the European Union would allow all parties to collaborate more effectively, and smooth access for non-governmental organisations and the media.

The government has also been urged to work more closely with the Nanotechnology Industries Association (NIA) to achieve these recommendations. 

And the Department for Environment Food and Rural Affairs must improve its dialogue with the NIA to resolve any remaining issues the industry may have concerning the protection of intellectual property. 

"The NIA supports the CST's Nanotechnology Review published today," said Dr Steffi Friedrichs, director of the NIA.

"The UK government should establish a nanotechnology funding budget, and ring-fence part of this for lifecycle analyses and risk assessments of novel engineered nanomaterials.

"The funding could be channelled through industry in order to provide small nanotechnology companies with support for expensive toxicology tests.

"In addition, a percentage of the budget should also be earmarked to invest in areas in which the UK nanotechnology industry can be globally competitive in five to 10 years' time."

Friedrichs told vnunet.com that the UK risks being left behind in the nanotech industry, despite being seen as a pioneer in the field three years ago.

The UK has very few spin-off companies that result from research into nanotech when compared to countries such Germany, the US, Japan and even France.

The NIA believes that these areas of competitive advantage should come from collaboration between the public and private sectors.

"Moreover, it would be recommendable for government to champion nanotechnology and to promote its wealth-creation opportunities and potential benefits for health, society, the environment and consumers," said Friedrichs.

"This would help to secure the UK as a leading player in nanotechnology by stimulating innovation in companies and research in universities and providing the right climate to support these technologies.