Which brings more nano green: Republican red or Democratic Gray?

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OAKLAND, Calif., Oct. 7, 2003 — Does nanotechnology look better in blue or red?

That question might be answered in today’s California gubernatorial recall election. Blue is the color the nation’s political maps use to denote Democratic states, and red for Republican.

California is about as blue as a major state gets. Both senators are Democrats as are the bulk of the representatives, including House Minority Leader Nancy Pelosi. So is the besieged governor, Gray Davis.

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If voters replace Davis with the leading Republican candidate, Arnold Schwarzenegger, California will suddenly mix some red into its blue profile. And, if you believe some of the nanobuzz around here, that may mean more federal money for nanotechnology research.

Thus, while the rest of the nation watches the election in fascination and bemusement, the local nanotech community might be forgiven for wondering whether it’s about to win a nanotech funding lottery.

U.S. Reps. Mike Honda and Zoe Lofgren, both Democrats, did not say directly that partisan politics is currently preventing federal funds from coming to California, but at a recent Bay Area nanotech forum, they went as far as to say that in Washington, it matters whether a state is red or blue.

Others in the Bay Area point grimly to the location of the six Nanoscale Science and Engineering centers funded by the National Science Foundation in 2001. Three of them were in New York state, one in Texas, one in Illinois and one in Massachusetts.

“I don’t think there’s a coincidence in dollars going to Texas, nor that the dollars are going to New York,” said Rick Juarez, managing partner at AlphaCap Ventures LLC, a merchant bank in Pleasanton, Calif.

In theory, then, a Republican governor might help California attract more federal funds for nanotech research, particularly useful for a state whose budget problems preclude new spending initiatives.

“I personally think it helps” if Schwarzenegger becomes governor, said Chris Piercy, managing director of Knowledge Market, a venture capital firm. He praised the Bay Area’s congressional representatives, particularly Lofgren, Honda and Democrat Anna Eshoo, but noted, “if you look at the political runes, they’re blowing funding over to Republican states such as New York, Texas and Florida.”

Of course, Silicon Valley has a thriving nano research community, much of it federally funded, at the University of California, Berkeley, Stanford University and a variety of companies. Federal funding for nano research also flows into NASA’s Ames Research Center, among the biggest single centers for nanotechnology research in the country. There is also a federally funded Molecular Foundry under construction at the Lawrence Berkeley National Laboratory. So perhaps some of Silicon Valley’s paranoia is overblown.

Then again, the wackiness of the recall almost invites paranoia. More than 120 candidates are on the ballot, among them a porn impresario, a porn starlet, a billboard queen and a comedian. One can even argue that Schwarzenegger isn’t the best Arnold for small tech. That honor could belong to diminutive actor Gary Coleman, “Arnold” in the one-time hit comedy “Diff’rent Strokes.”

“I think we want the big Arnold,” said Tim Draper, of the Silicon Valley venture capital firm Draper Fisher Jurvetson. Draper, who is raising money for Schwarzenegger, said he doubts federal research dollars get doled out on a “red/blue” basis, but he argues that Schwarzenegger is the best candidate for nanotech.

“He’d be good for business confidence here and very good for education here. Both would make an impact on the success of the nanotechnology marketplace.”

Nonsense, says another nano investor, Garrett Gruener, co-founder and director of Alta Partners. Gruener, who sits on the board of Nanomix Inc., was probably the only gubernatorial candidate directly involved in nanotech. He’s on today’s ballot, though he is opposed to the recall and dropped out of the race last Thursday, throwing his support to Lt. Gov. Cruz Bustamante.

Gruener argues that Schwarzenegger has adopted the standard Republican platform of driving economic growth solely through tax cuts. “That’s a good way to compete for chemical plants, not for the most gifted people on the planet,” Gruener said. He argues that it’s much more important to invest in the state’s universities and general education system, both of which are suffering under the weight of California’s enormous budget deficit.

Gruener also said that California has done a poor job of competing for federal dollars, even when a Democratic administration was in place in Washington.

Gov. Davis has been a strong proponent of nanotechnology research and biotech investment in the state. He was actively involved in creating and funding the California NanoSystems Institute, for instance, and has worked hard on the state’s biotech initiative.

Perhaps seeing red will actually make the state’s nanotech industry blue.

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