Click here to download a PDF of Equity and debt financing.
Tag Archives: Small Times Magazine
Agilent Technologies Inc., the Palo Alto, Calif.-based test and measurement company, has become a player in the atomic force microscope market by acquiring Molecular Imaging Corp. of Tempe, Ariz.
The acquisition is expected to substantially increase the exposure of the Molecular Imaging AFM product line, according to company executives. In turn, said Vance Nau, president and CEO of Molecular Imaging, it will help his 40 staff members focus on their core tasks.
The company’s lead AFM product line is known as the PicoPlus family. The modular, high-resolution AFMs are used for imaging in fluids as well as ambient and controlled conditions. Current customers are mostly in drug discovery, life science, electrochemistry, materials science and polymer science.
Executives said the companies would seek to improve the capabilities of the product and simplify operations in order to address larger markets in the future. Long-term goals include creating a device that could be operated by a technician rather than a doctorate-level scientist, as well as developing application-specific units for uses like defect control in inline manufacturing.
Bob Burns, general manager of Agilent’s Nano Measurements Division, said Agilent would keep the Molecular Imaging team in Tempe because the company has strong ties with Arizona State University. Molecular Imaging was founded in 1993 by Stuart Lindsay and Tianwei Jing of Arizona State.
– David Forman
Schaumberg, Ill.-based American Pharmaceutical Partners Inc. is buying its majority shareholder, privately held American BioScience Inc. of Santa Monica, Calif., in an all-stock deal. The new company will be called Abraxis BioScience and will own global rights to Abraxane, a nanoparticle-based breast cancer drug as well as other technologies.
Aviza Technology Inc., a Scotts Valley, Calif., supplier of thermal process and atomic layer deposition systems, and Trikon Technologies Inc., a Newport, Wales-based provider of plasma etching and deposition systems for the semiconductor and MEMS industries, announced the closing of their consolidation through merger. The combined company is known as Aviza Technology Inc.
Bruker AXS, a Madison, Wis., maker of analytical X-ray systems, closed on two previously announced acquisitions, that of Roentec AG and the X-ray microanalysis business of Princeton Gamma-Tech Instruments Inc. Bruker combined the two units into a newly created Bruker AXS Microanalysis business unit.
Measurement Specialties Inc., a Hampton, Va., designer and manufacturer of sensors and sensor-based consumer products, announced it has acquired the capital stock of HL Planartechnik GmbH, a sensor company located in Dortmund, Germany, for $7.1 million. HL Planartechnik specializes in thin-film metallization processes, producing sensors in a variety of categories.
Nanoforce Technologies Inc. of Clearwater, Fla., entered into an agreement to acquire Refinery Science Corp., a company based in El Paso, Texas, that uses nanotechnology for the extraction and refinement of oil reserves. The company says its technology will help it extract low quality crude oil, such as that from shale and sand, in a cost-efficient and productive process that can compete with light crude refining costs.
Rite Track, a West Chester, Ohio, manufacturer of track systems for the MEMS industry, announced the acquisition of online equipment broker SemiSurplus.com. The acquisition is intended to give the company another source for the components it uses in its business and provides it with more flexibility in daily operations. SemiSurplus.com will operate as a wholly owned subsidiary of Rite Track.
The challenge: Secure Food and Drug Administration approval to put a new type of device or material inside the human body.
The approach: Both CardioMEMS and AcryMed combined rigorous trials with early and constant communication with the FDA.
The result: CardioMEMS’ EndoSure Wireless AAA Pressure Measurement System received FDA approval in November. A catheter using AcryMed’s SilvaGard coating was approved in December.
By David Forman
Developing a new product – matching design and functionality with a real market need – is difficult enough. But when it comes to working inside the human body, it’s doubly so. Devices and materials used in vivo must undergo rigorous clinical trials in what is essentially a make-or-break process. Two recent success stories, one a MEMS company and the other a nanotech company, highlight some of the practices companies use to navigate the trials process.
Both companies – CardioMEMS of Atlanta and AcryMed of Portland, Ore. – saw their products receive FDA approval late last year. CardioMEMS makes implantable MEMS medical sensors. AcryMed makes antibacterial nanoparticle coatings for medical devices. In both cases, said executives at the firms, getting in touch with the FDA early on proved critical, as did clear communication and a collaborative attitude.
CardioMEMS’ implantable sensor is designed for use with stents that treat an aneurism of the lower abdominal aorta. In the condition, a weakened aortal wall begins to bubble out, a potentially catastrophic problem if it bursts. Currently, stents with a fabric coating are implanted within the artery to create a sort of tube-within-a-tube. When functioning correctly, the blood flows through the tube and the pressure on the arterial wall is alleviated.
However, leaks appear periodically when blood finds its way around the stent, putting pressure back on the damaged wall. Currently, patients must undergo CT scans on a regular basis to test for leaks. With CardioMEMS’ sensor, however, a doctor merely has to move a handheld antenna over the patient’s abdomen to determine whether there is any pressure on the sensor, which has been implanted into the aneurysm sac during the same procedure in which the stent was placed in the body.
In addition to the challenge of developing an innovative technology that combines MEMS sensors, wireless connectivity and proprietary software, “we also had to demonstrate to the FDA that the product is both safe and effective since we are a medical device company,” said David Stern, CardioMEMS’ chief executive.
To streamline the process, Stern said his company stayed in constant communication with the FDA and hired a director of regulatory affairs to be responsible for the effort. Clinical tests began in March 2004 in Brazil and ultimately also included Argentina, Canada and the United States.
For starters, CardioMEMS’ sensor is built on a ceramic silica substrate, he said. To prove its product’s safety, the company had to do extensive research to show that all the materials it used were biocompatible and also extremely stable.
Meanwhile, interesting questions popped up – like, how do you confirm that the device is always functioning correctly? After all, if the stent is doing its job, there may be little or no pressure in the aneurysm sac. It is important that physicians do not misinterpret a “zero” pressure reading as a non-responsive sensor.
Stern explained that as long as the antenna is receiving a frequency signal from the sensor, the physician can be assured that the device is working properly. Just the same, the company still developed a simple test to use during the follow-up pressure measurements: The patient coughs and the sensor responds by showing a pressure change.
AcryMed found success with a similar strategy even though it is ultimately AcryMed’s customers who must file for FDA approval rather than AcryMed itself. The company’s SilvaGard coating is intended to prevent the buildup of films on medical devices. Such “biofilms,” said Bill Gibbins, AcryMed founder and chief technology officer, can provide bacteria with a safe haven from which to launch repeated infections against their hosts.
“It turns out organisms are more coordinated (than we thought),” Gibbins said. “They will turn on a gene that makes them sticky and form a tightly adhering colony on a surface. …When a critical mass forms, it will release a chemical signal to make a polysaccharide coating that blankets the organisms.”
If you can keep biofilms from forming on devices, said Gibbins, you can keep many infections from forming, too. The company’s SilvaGard, a silver nanoparticle technology, is designed to do just that.
The surfaces of implanted medical devices are perfect for the formation of biofilms, Gibbins said, and the longer they are implanted, the likelier they are to create infection-related problems. “If a Foley (bladder) catheter is implanted three to five days, there is less than a 5 percent chance of an infection,” he said. But after that, he said, the infection rates begin to rise precipitously.
Since he knew his licensees would need FDA approval, Gibbins made sure his company was also working closely with the agency from the start. Concerted efforts included developing specifications for using devices, making sure their materials would meet with approval, establishing a baseline for what kind of antimicrobial performance to expect and determining whether there were any known side effects – of which they found none. In December, I-Flow Corp. of Lake Forest, Calif., received FDA clearance for its ON-Q SilverSoaker antimicrobial catheter, the first medical device to use AcryMed’s SilvaGard.
The payback for both CardioMEMS and AcryMed is not just the initial product, but also the momentum of a successful FDA clearance. Stern said CardioMEMS is now transitioning production of its sensors to a large-scale commercial fab, and the company plans to commence clinical trials on a second product within months. Meanwhile, Gibbins said AcryMed has received inquiries from more than a dozen new potential customers.
Nanotech sector leaders and analysts recently called for more funding for research into the environmental, health and safety (EHS) impact of nanotechnology and one group released an inventory of existing EHS efforts.
At a hearing in November in Washington, D.C., by the U.S. House Committee on Science, witnesses from within industry, market analysis and policy research organizations and an environmental group said the funds currently allocated for such research are insufficient.
Clayton Teague, director of the U.S. National Nanotechnology Coordination Office and a witness at the hearing, said the government has allocated $39 million in such funding in 2006. The testimonies of the other witnesses covered a wide range of issues but found common ground in the call for additional funding for research into the environmental and safety aspects.
Witnesses Matthew Nordan, vice president of research at Lux Research, and David Rejeski, director of the Project on Emerging Nanotechnologies at the Woodrow Wilson International Center for Scholars, argued that the government should be more proactive in addressing the risks of nanotechnology – in particular, nanomaterials – so that the public can be accurately informed about both the potential risks and rewards.
“Even if studies showed every commercially relevant nanoparticle to be harmless in every real-world usage scenario, public skepticism about the safety of nanoparticles could still build and sharply limit the use of nanoparticles in products,” Nordan said in a prepared statement.
Meanwhile, shortly after the hearing, the Project on Emerging Nanotechnologies at the Wilson Center unveiled an inventory of research into nanotechnology’s potential environmental, human health and safety effects.
The center says its inventory shows a need for more resources, for a coherent risk-related research strategy, and for public-private partnerships and international EHS research collaborations. The inventory identifies about $27 million currently being spent by the U.S. government on EHS, though the center acknowledges the inventory is not comprehensive.
Wilson center scientists said particular areas needing support include investigating workplace safety issues like the risk of explosion in production of nanopowders. They also said that virtually none of the research deals with future generations of nanomaterials; and that little funding is allocated to explore possible links between exposure to nanomaterials and diseases of the lung, heart or skin.
– David Forman
Accelrys Inc., a San Diego maker of scientific modeling software, announced the launch of the Accelrys NanoBiology Initiative. The goal of the initiative is to accelerate the development of computational modeling and informatics software that will enable scientists and engineers to apply nanotechnology to key areas of biological research, including diagnostics, biosensing, drug delivery and biomaterial design. By fostering collaboration between scientists and engineers and bridging the gap between materials science and life science, the company says the new initiative will aim to enhance nanobiology R&D, extending the use of nanotechnology into new areas of research. A scientific advisory committee will be chaired by Leroy Hood, president and co-founder of the Institute for Systems Biology and a leading proponent of biological applications of nanotechnology.
The Institute of Electrical and Electronics Engineers (IEEE) announced it has begun work on a new standard, “Standard Methods for the Characterization of Carbon Nanotubes Used as Additives in Bulk Materials.” Known as IEEE P1690, the standard is expected to be the first to define methods for testing carbon nanotube additives and how to report the resulting performance data. The IEEE said the standard would recommend instruments and procedures for validating nanotube purity, concentration, dispersion rate, agglomeration and other properties. In the area of purity, for instance, it will address the presence of non-carbon substances, such as metal catalysts and carbon-like molecules. It will give material suppliers a structure for providing data and offer guidance on proper levels for dispersion and agglomeration.
Freescale Semiconductor Inc., the Austin, Texas-based Motorola spinoff, announced it has proven a 24-Mbit memory array based on silicon nanocrystals – a milestone toward developing a nanocrystal memory that could compete with embedded Flash memory in years ahead.
The device was proven at the company’s Austin technology and manufacturing center. It was made using full 90-nanometer processing technology. In 2003, the company demonstrated a 4-Mbit device that partially used 90-nanometer processing but relied on a circuit made using a 130-nanometer process.
Ko-Min Chang, Freescale’s manager of memory devices, said the memory array is significant because it goes a long way toward proving the reliability of such a device. “The more bits we have the faster we can evaluate the reliability,” he said. “…In the field, almost 100 percent of failures are single-cell related. We now check per bit.”
The technology is intended to compete with embedded NOR Flash, the type used in computers and industrial applications to store programs and relatively small quantities of data. Chang said competing with the NAND Flash used for consumer electronics audio and video storage might be feasible further down the product development path. He anticipates the company will try to roll out its first nanocrystal-based memory product to serve the automotive market in the 2008 to 2009 timeframe and that it will likely be built on a 65-nanometer process.
Chang said the use of nanocrystals would make it easier to integrate memory with a logic processor than using conventional Flash, and that semiconductor foundries would be likely to adopt it because the technology does not require new materials or equipment.
– David Forman
Applied Biosystems Group, an Applera Corp. business based in Foster City, Calif., and joint venture partner MDS Sciex, a division of MDS Inc., announced the launch of the Tempo Liquid Chromatography systems. The systems are designed to provide integrated front-end solutions for researchers conducting proteomics, biomarker and drug discovery studies.
CardioMEMS Inc., an Atlanta company focused on the application of MEMS technology to create innovative medical devices, announced U.S. Food and Drug Administration clearance and the U.S. market launch of its EndoSure Wireless AAA Pressure Measurement System.
Cepheid Inc., a Sunnyvale, Calif., maker of systems for genetic analysis, announced the launch of the GeneXpert System into the molecular clinical research field. The initial product for use on the GeneXpert System in this field is a research product for the identification of cells carrying the BCR/ABL chromosomal translocation. The product is part of a broader program directed at investigating its potential use for monitoring patients with chronic myelogenous leukemia. Both the GeneXpert System and the BCR/ABL products will be available for shipment on a research-use-only basis.
![]() A coated part emerges from an ultraviolet cure manufacturing line operated by Ecology Coatings. Photo courtesy of Ecology Coatings |
Ecology Coatings Inc., an Akron, Ohio, provider of nano-engineered ultraviolet curable coatings, announced that it has developed a new nanomaterial-based coating that adheres to polycarbonates to provide a barrier for moisture, chemical, scratch and abrasion resistance for automotive parts, consumer electronics, flexible displays and other sensitive polycarbonate applications. Ecology said its product’s performance was confirmed at Tekra Corp., a company focused on the development of high-end customized coatings.
FEI Co. of Hillsboro, Ore., announced it has introduced its next-generation Vitrobot, an automated vitrification device for plunge-freezing of aqueous samples. The system maintains the cryo-fixation process at constant and user-definable physical and mechanical conditions, delivering reproducible sample freezing and high throughput. The technique of cryo fixation and imaging of aqueous samples at cryo temperatures in a transmission electron microscope is used in nanobio research and by the chemical and pharmaceutical industries for studying colloidal solutions of polymers, pigments and other nanoparticles. FEI also announced that Ohio State University’s Center for Accelerated Maturation of Materials has become the first North American site to install and begin using its new scanning/transmission electron microscope, the FEI Titan 80-300.
Jenoptik Mikrotechnik GmbH, a Jena, Germany, maker of hot embossing/imprinting tools, announced the introduction of its HEX 04 system. The system is designed to provide the user with flexibility in the high precision molding of polymer parts containing micro and nanoscale features, including those with high aspect ratios. The system was specifically created to provide an effective solution to large volume applications like optical gratings, microfluidic chips and wafer-scale packaging, which require highly automated/high throughput manufacturing.
![]() NanoOpto’s infrared cutoff filters are now inside camera phones being sold by major manufacturers. Photo courtesy of NanoOpto |
NanoOpto Corp., a Somerset, N.J., maker of optical components using proprietary nanoprocessing techniques, said its infrared cutoff filter is currently inside mobile camera phones being sold to consumers. The filter blocks infrared light from infiltrating the camera lens. NanoOpto is currently shipping the product to two submodule assemblers who integrate the component in a camera assembly that is then sold to camera phone manufacturers.
Owlstone Nanotech Inc., a Cambridge, England, developer of nanotechnology-based chemical detection products, announced a beta testing program with Kidde, the global fire and safety group. Owlstone said its nanofabricated chemical detection system would be tested for suitability in the next generation of Kidde’s safety detection, prevention and protection systems.
![]() PLUS Vision’s V339 home and business projector is based on Texas Instruments’ MEMS digital light processing engine. Photo courtesy of PLUS |
PLUS Vision Corp. of America, a Beaverton, Ore., maker of projectors, unveiled the V-339, a dual color mode projector based on Texas Instruments’ digital light processing MEMS technology. The 2.8-pound projector is intended for either home or business use. One color mode is intended to enhance the natural color of photographs or DVDs while a second mode increases the crispness required for business presentations.
Polychromix Inc., a Wilmington, Mass., developer of material analysis, chemical sensing and spectroscopy solutions, announced the launch of its MobiLight products, a family of long life, portable light source and probe devices that support a broad range of spectroscopy applications.
PolyFuel Inc., a Mountain View, Calif., developer of fuel cell membranes, announced that its hydrocarbon direct methanol fuel cell membrane has passed the 5,000-hour mark in durability testing.
pSivida Ltd. of Perth, Australia, announced it signed a license with Beijing Med-Pharm Corp. for the clinical development, marketing and distribution of pSivida’s lead product, BrachySil, in China. Under the terms of the license, pSivida will manufacture BrachySil and Beijing Med-Pharm will be responsible for clinical development, securing regulatory approval, marketing and distribution in China.
Singular ID of Singapore is to supply its magnetic protection tags to the Singapore subsidiary of automotive parts manufacturer Sanden International. The tags contain micro- and nanometer-size magnetic components that create a unique magnetic signature. SENSORS
SUSS MicroTec, a Munich, Germany, equipment supplier for MEMS manufacturing and testing, received three purchase orders from leading device manufacturing companies for its production wafer bonder ABC200. The systems are for locations in Europe, North America and Taiwan and are being used for display and automotive applications in direct, triple-stack anodic and thermal compression bonding processes. SUSS also announced that Purdue University has purchased a SUSS SB6e Substrate Bonder and a MA/BA6, Mask/Bond Aligner for use in its Birck Nanotechnology Center.
thinXXS GmbH, a Zweibrucken, Germany, maker of microfluidic and micro-optical components, announced its MDP2205 micro pump. The pump features high back pressure and suction height while its footprint measures only an inch in diameter and a fifth of an inch in height. It is intended for OEM products in areas such as diagnostics, analytics, miniaturized fuel cells, consumer goods or chip cooling.
INSEAD InnovAsia contributed to this report.
While I’ve never resorted to putting a Canadian flag on my luggage, I understand why Americans do it. People are nicer to Canadians than Americans. Canadians have a well-deserved reputation as being good, honest and nice. And nice doesn’t include pushy. Unfortunately.
Having just returned from a whirlwind tour of Montreal and Toronto, I have a better appreciation of the micro and nanotechnology landscape in Eastern Canada. There are interesting happenings in the white belt, though I doubt many people outside Canada know. At a national level, the Canadian government is not visibly promoting its capabilities to a broad audience.
My trip was sponsored by a Canadian embassy as a way to showcase their nanotechnology development efforts. But this was the initiative of a strategic-thinking investment development officer, not a coordinated push from above. It’s hard to be taken as a serious player when no one knows you are in the game.
Although the promotion isn’t there, the activity certainly is. NanoQuebec, a non-profit organization funded by the governments of Quebec and Canada, organized two days with startups, universities, venture capitalists and a MEMS manufacturer. There is support, including funding, for building a competitive nano cluster in Quebec.
During my trip I was given the good and bad of nano in Canada. However, what I am discovering is that regions are finding ways to leverage their strengths to make the most of limited resources. In Canada’s case, it appears that the university system is the key driver of the nanotechnology sector. Researchers are securing funding for infrastructure, focusing on technology application and are moving their research into the marketplace.
The Neurological Institute at McGill proves how researchers are crossing traditional academic departments to solve real-world problems with nanotechnology. In open discussion forums, researchers talk about the problems they are trying to solve. Unique angles, new approaches and a common language are being discovered through this dialog – creating excitement and initiative to work together driven by the bottom up, not the top down.
Although the universities in Quebec are competing against one another, the provincial government has instituted a process to encourage cooperation and to facilitate resource sharing. University researchers/grant developers go through two approving bodies before their infrastructure proposal is recommended to a federal funding organization. Quebec’s technology research fund assesses the project’s scientific value and partners with NanoQuebec to evaluate the industrial strategic value.
While I was there, NanoQuebec was facilitating discussions between the University of Montreal and McGill, two strong nano research institutions looking for support of double-digit million dollar projects. The goal is to eliminate duplication of funding requests and encourage research and equipment use across boundaries while prioritizing an industrial agenda.
The coordinated efforts in Quebec are paying off. According to the Canadian research funding database, Quebec’s nanotechnology related expenditures in 2004 – a little more than $47.5 million – were the size of all the other provinces put together, with the exclusion of Ontario at about $35.5 million.
More informally, the interconnection of academia and the industrial community in Quebec and Ontario was clear in almost all of my meetings. Industry relies heavily on the research community for technology development and facility sharing. While there seems to be a solid base for seed funding of new companies, the dollars available for significant equipment investment are hard to come by. Companies use relationships with the universities to meet their short-term research and development needs.
At the Ecole Polytechnique at the University of Montreal, an incubator system in a new nanotechnology building provides access to facilities for companies like Nanometrix, which is commercializing technology for monolayer assembly, and Nova Plasma, which is trying to solve degradation and quality issues in flexible organic electronics manufacturing.
Waterloo holds an entrepreneurial/commercial center and a vibrant university with a large undergraduate nanotechnology program. While I’ve heard arguments against undergrad nanotechnology degrees, I believe the industry demand for skilled labor (this program also requires 24 months of co-op experience) will create a strong pull for these graduates.
While considered by some to be a minor player, Canada has more potential than is commonly recognized. Strong research programs, high-quality workforce, solid research, and equipment will all assist Canada in playing an important global role in emerging technologies, albeit probably a niche one.
But take a lesson or two from one of Canadian’s rising nano stars, Ted Sargent. Learn the art of self-promotion.
![]() |
Patti Glaza is vice president and publisher at Small Times. She can be reached at [email protected].
Acacia Research Corp., a Newport Beach, Calif., holding company whose CombiMatrix division makes microfluidic products, announced that Jonathan Said joined CombiMatrix’s wholly owned subsidiary, CombiMatrix Molecular Diagnostics, as a member of its scientific advisory board. Said is chief of the division of anatomic pathology at UCLA Medical Center for the Health Sciences.
Advance Nanotech Inc., a New York-based provider of financing and support services for nanotechnology companies, announced the appointment of Thomas Finn as chief financial officer. Finn was formerly financial controller. As CFO, he will be responsible for designing and implementing financial reporting infrastructure, policies and procedures. Advance Nanotech also appointed Tony Goncalves to its board of directors. Goncalves is associate director at Purdue Pharma L.P.
Arrowhead Research Corp., a Pasadena, Calif.-based funder and developer of nanotechnology research and companies, announced the appointment of Leon Ekchian as president. Ekchian’s responsibilities will include overseeing the day-to-day operations of Arrowhead’s subsidiaries and developing its long-term strategic plan. Ekchian was president and chief executive officer of Litex Inc., a Lockheed Martin spinoff focused on the commercialization of advanced electronic automotive technologies.
![]() Ken Thouvenot |
FKI Logistex, a St. Louis maker of integrated material handling solutions, named Ken Thouvenot as vice president of project management and engineering in the company’s North American manufacturing systems unit. Thouvenot was most recently vice president of project management and marketing. The company also named Matt Wicks as director of systems engineering and Brett Felton as international sales manager.
iCurie Inc., a Miami maker of thermal management products for computers and consumer electronics, named George Meyer vice president of sales and marketing and general manager for the Americas and Europe. Meyer will be responsible for developing key customer relationships, managing the company’s product portfolio and growing sales throughout the industry. Meyer was an executive at Thermacore International, a subsidiary of Modine Manufacturing, from 1977 to 2004.
MFIC Corp., a Newton, Mass., manufacturer of industrial submicron processing equipment, announced that Eric Walters and George Uveges have been appointed to its board of directors. Walters will serve as chairman of the audit committee, while Uveges also joins that committee. Walters is vice president and chief financial officer of CardioTech International Inc. Uveges is a founder and principal in the Tallwood Group.
Microchip Biotechnologies Inc., a Dublin, Calif., company that is developing nanofluidic sample preparation and analytical instrumentation for the genomics and biodefense markets, named Barney Saunders as chief operating officer. Saunders was with Agilent Technologies, where he held the positions of general manager and vice president for bio research solutions and senior director of science and technology.
Nanomix Inc., an Emeryville, Calif.-based developer of sensors using carbon nanotubes, named Gregory Schiffman to its board of directors and appointed him chairman of its audit committee. Schiffman is executive vice president and CFO of Affymetrix.
![]() Steve Leach |
Nanotechnologies Inc., an Austin, Texas, nanoparticle synthesis and applications company, named Steve Leach chief executive officer. Leach is responsible for the company’s overall strategic direction, with emphasis on developing its product and application roadmap and accelerating commercial programs. Leach was with Dell Corp. in a variety of roles in product development and corporate venture capital.
Qcept Technologies Inc., an Atlanta maker of chemical metrology tools, named Erik Smith as president and COO. Smith will be responsible for product development, applications, sales and marketing, and day-to-day operations at Qcept. Smith was with Ultratech Inc. as senior vice president of worldwide sales and marketing.
![]() Cliff Chen |
Rohm and Haas Electronic Materials’ CMP Technologies group, a Phoenix developer of chemical mechanical planarization technology, named Cliff Chen plant manager at its Asia Pacific Manufacturing and Technical Center in the Hsinchu Science Park in Taiwan. Chen will be responsible for the construction and execution of the pad manufacturing operations at the facility. Prior to joining CMP Technologies, Chen supervised the manufacturing department at CMC Electrical Ltd.
Veeco Instruments Inc., a Woodbury, N.Y., maker of metrology tools and process equipment, named Jeannine Sargent as executive vice president of metrology and instrumentation. Sargent was formerly executive vice president and general manager of the research atomic force microscope and nanobio business unit. The company also named Robert Oates as senior vice president of data storage. He was formerly senior vice president of ion beam operations.
By Candace Stuart
It only takes the first three pages of “The Eye for Innovation” to understand the reasons for the successes behind Control Data and Robert Price, its former chairman, president and chief executive officer. Technology, Price writes, equals know-how. Innovation stands for problem solving.
So much for gizmos, gadgets and the fuzzy, long-winded descriptions that litter corporate board rooms and business school classrooms. Price distills business concepts to their essence in a fascinating analysis of a company that was founded nearly 50 years ago to provide high-end data processing and equipment primarily for scientific and defense users. It metamorphosed from computers to peripherals and finally services. It now exists as Ceridian Corp.
While Control Data may no longer be a well-known name in the world of high tech, one of its founders remains an icon. Seymour Cray, architect of supercomputers and the engineering genius behind several of Control Data’s early blockbuster systems, was among the dozen pioneers who helped grow the Minnesota startup. Within 12 years, the company went from having no products and only $600,000 into a corporation with a global presence and revenues in excess of $1 billion.
![]() “The Eye for Innovation” By Robert M. Price (nonfiction, 329 pages, published in 2005 by Yale University Press, $30 in hardback) |
Price, who rose up the executive ranks from general manager in the 1960s to president by 1981, credits a company culture that encouraged staff to use their know-how and problem-solving skills to beat competitors like IBM. Know-how led to a diverse set of products, from Cray’s powerful supercomputers to educational software and shareware. Problem-solving abilities helped managers recognize and create business opportunities.
Control Data added peripherals to its portfolio to provide a low-cost solution to support its computer business. Services took center stage when it became clear that clients needed more than hardware and software. Price takes some pleasure in noting that IBM, Control Data’s nemesis for most of its existence, has shifted its focus to services.
In many ways, “The Eye for Innovation” resembles the standard how-to books found in the business section of a bookstore. Price uses Control Data’s decades-long history to illustrate industrial, academic and governmental partnerships, employee relations and even civic responsibilities. He weaves stories of Control Data’s novel products, services and workplace concepts to guide managers.
If you want innovation, for instance, accept failure. Cray continued to head up a laboratory in Wisconsin despite some expensive design duds. That sent a strong signal to innovators that Control Data was sincere in its mission. But by 1985, Control Data’s enthusiasm for all good ideas created an unfocused and unprofitable business.
“There was too much attention to what might be the next opportunity and too little to the problems of the opportunities already in hand,” he writes. “… Every new services opportunity was exciting – it clearly had potential, even if poorly defined, and it was a great challenge to our capacity for innovation. What could be more enticing? And now the price had to be paid, and it was: in 1986, thirteen business units were sold or shut down.”
The cautionary tale reminds me of companies involved in emerging and platform technologies such as microsystems and nanotechnology. Innovation can become a siren song if it is isolated from customers’ needs, Price argues. Control Data survived its crisis, but not without scars.
I often wondered as I read the book which of today’s micro and nanotech companies will prove to be their generation’s Control Data. Are nanomaterials specialists such as Oxonica, Carbon Nanotechnologies Inc. or Nanophase Technologies poised to become leaders, like Control Data circa 1960? Are mature companies such as BASF, 3M, GE – and of course, IBM – breeding innovations, as Price claims Control Data did for its first three decades, that are based on micro and nanotechnology? The Control Data saga offers a compass for them all.
Steven Jefferts knows better than to make lofty predictions about F2. After all, it took his colleagues and him almost a decade of tweaking to get F1 into the position as the world’s best timekeeper.
F1 is nothing like a traditional clock, though. It’s a laser-cooled cesium fountain, a device that determines the passing of a second by measuring the oscillations of cesium atoms. “Nine billion and change” oscillations add up to a second, said Jefferts, a physicist at the National Institute of Standards and Technology in Boulder, Colo., and designer of F1. F1 can so accurately track the oscillations that it is projected to neither gain nor lose a second in 60 million years. Jefferts and his team published their record results in the journal Metrologia last fall.
Since 1999, F1 has set the standard in the United States and is a contributor to the International Atomic Clock. The data is used to synchronize Global Positioning Systems, for instance, and for defense applications ranging from navigation to code breaking.
“Time applications are not the place where huge accuracy is needed,” Jefferts said. “It’s when you’re trying to synchronize at high speeds. With GPS, if you just let the clock wander off on its own, eventually it will tell you a wrong time and give a positioning error.”
![]() From left, physicists Steven Jefferts, Elizabeth Donley and Tom Heavner are mastering the art of accuracy by improving NIST’s atomic clock. Photo courtesy of NIST. |
Jefferts and co-workers Elizabeth Donley and Tom Heavner think in terms of reducing uncertainties rather than increasing accuracy. “There’s a laundry list of things that can mess up the clock,” Jefferts said. “They add up to the uncertainties.”
The NIST group earned their title as having the most accurate of the clocks through incremental changes that improved reliability: Swapping Jefferts’ homemade laser apparatus for a commercial product and better monitoring of subsystems allowed them to conduct uninterrupted run times. They even found ways to overcome the shortcomings of their lab space, an add-on to the NIST facility.
“We’re the poster child for how bad an environment can be,” Jefferts joked.
That will change this year. Jefferts and his crew in the Time and Frequency Division are moving to better digs within NIST’s building. The new space will hold F2, a second-generation fountain that may be in place by the summer. F2 is expected to have capabilities that will whittle away some remaining uncertainties. But based on his experience, Jefferts cautions, it will take some time before F2 has a hope of besting its predecessor.
– Candace Stuart