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SUBJECT: Austria's Schizophrenic Approach to Nanotechnology 
 
¶1. (U) SUMMARY:  The Austrian government is investing heavily in 
nanotechnology -- as part of a well-funded campaign to regain 
leadership in science and research -- but given Austria's poor track 
record in public acceptance of new technologies (including nuclear 
energy and green biotech), the GoA fears alarmism could undermine 
its efforts.  To head off potential problems, the GoA has created a 
"Nano Initiative" to fund research and a "Nano Trust" which aims to 
manage risk issues surrounding nanotechnology.  Despite this good 
start, the GoA's strategy is being tested by pressure groups who 
want a nano-labeling requirement for food, animal feed and cosmetics 
by late 2009 or early 2010.  END SUMMARY. 
 
Comparative Advantage 
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¶2. (U) The Austrian science policy community has jumped onto the 
nanotechnology bandwagon with enthusiasm.  While a catch-all term, 
Austrians see nanotechnology as a useful rallying point for more 
research funding.  GoA policymakers believe Austria can be a leader 
on nanotechnology, given the country's strong foundation in the 
material sciences.  In addition, nanotechnology is not seen as "big" 
science requiring huge investment by government and industry but 
rather as a field where smaller industries and more targeted 
government funding can bring results.  This perceived comparative 
advantage led the GoA to set up the Nano Initiative in 2003 and the 
Nano Trust in 2007. 
 
"Nano Initiative" and R&D Funding 
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¶3. (U) The Nano Initiative is managed by the Austrian Research 
Promotion Agency (FFG) and has an annual budget of about EUR 10 
million (generous by Austrian standards).  According to Nano 
Initiative head Dr. Margit Haas, FFG typically funds nano-research 
via three-year contracts of EUR 2-5 million per research "cluster" 
(meaning consortium of companies, R&D firms and academia working on 
related smaller projects).  FFG funds 60-80% of the total cost of 
each research project.   So far, FFG has funded nine clusters in the 
following areas: 
- Nanocomposites 
- Photonic nanotechnology 
- Photocatalytic nano-layers 
- Organic sensors and opto-electronics 
- Nano-coatings (diamond, tri-biological, and active coatings) 
- Nano-imprint lithography 
- Nano-materials for drug targeting, release and imaging 
 
¶4. (U) FFG also bestows four "Nano Awards" each year (entitled 
"nanoBusiness", "nanoResearch", "nanoSociety" and "nanoYouth"), 
valued both as prize money and for prestige, and often a precursor 
to getting EU Framework grants.  (FFG's promotion efforts have gone 
so far as to include supporting "Nano Camps" for teens.) Because its 
focus is on relatively near-market R&D, the Nano Initiative has 
continued to receive strong support from the GoA despite recent 
budgetary problems with basic R&D more generally.  More information 
is available in English at www.nanoinitiative.at. 
 
¶5. (U) The GoA also supports basic research in the nano-sciences 
through its traditional funding agency, the Austrian Science Fund 
(FWF).  The FWF provides grants up to EUR 84,000 directly to 
individuals doing basic research; there are 132 such grants in 
nanotechnology (112 in physics, 20 in biology).  Details on 
individual grants are available in English at 
http://www.fwf.ac.at/en/projects/projekt_such e.html. 
 
The Nano Trust and Risk Dialogue 
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¶6. (SBU) The GoA set up the Nano Trust within its Institute of 
Technology Assessment in 2007 as a three-year project to address 
risk assessment and risk communication.  The GoA took this proactive 
stance because it did not want to face a repeat of the public outcry 
surrounding nuclear power (in the 1970s) and agricultural 
biotechnology (since the 1990s).  In both cases, fervent public 
protests drove the government to ban each technology in Austria and 
lobby against acceptance in the European Union.  According to Ulrike 
Felt from the University of Vienna, some policymakers now feel that 
green biotechnology in particular was "mishandled" and that the GoA 
should educate and engage the public earlier in the governance 
process.  She also predicted that nanotechnology would be difficult 
to regulate because it is not really a single technology, but rather 
a group of divergent technologies, and as such does not fit the 
traditional model of regulation and control. 
 
¶7. (U) The Nano Trust's responsibilities include: 
-- evaluating R&D projects with regard to safety issues; 
-- encouraging research on the risks associated with nanotechnology, 
including any ethical/legal/societal implications; and 
-- opening a dialogue with the public about potential risks. 
However, the Nano Trust has thus far limited its public outreach to 
discussions with scientists and key stakeholders; it does not in 
fact foresee engaging the public directly in a risk debate. (More 
information about the Nano Trust is available in English at 
www.nanotrust.at). 
 
Limited Public Involvement 
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¶8. (U) A public debate on nanotechnology has not yet taken off in 
Austria.  Media articles appear from time to time in newspaper 
science sections, and national ORF radio broadcast a series of four 
half-hour features in 2007.   The Nano Trust has kept the risk 
debate largely behind closed doors; its working groups include the 
relevant ministries, the consumer protection agency, the Labor 
Chamber, the Economic Chamber, and a handful of NGOs (e.g., Global 
2000/Friends of the Earth).  NGOs are assisting the Nano Trust in 
developing a Nano Action Plan as a guideline for directing and 
implementing the GoA's future nano-research.  They are also the 
moving force behind nano-labeling plans (see below). 
 
¶9. (U) The GoA hopes to set up an online public discussion forum on 
potential risks, to be managed by a consumer protection agency such 
as the Austrian VKI.  However, once the nanotechnology debate hits 
the public arena, there is a danger that Austrian media -- most of 
all its mass-circulation tabloids -- will play up potential risks 
(as with nuclear and GMO issues) and endorse a broad "no" to 
nanotechnology, in particular anything potentially affecting 
human/animal health including food, feed, and beauty products. 
Regulators seem to recognize that a coordinated public information 
campaign is needed, but have not taken decisive steps in that 
direction. 
 
Austria Could be a First-Mover on Nano-Labeling 
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¶10. (U) Dr Michael Nentwich, Director of the Institute of Technology 
Assessment and the Nano Trust, told us that Austria will probably 
institute either voluntary or mandatory labeling for nano-materials 
in food, animal feed and cosmetic products soon. (NOTE: the GoA has 
already funded a project to identify nano-materials in food and 
cosmetics.)  The GoA also strongly supported the nano-labeling 
position adopted by the European Parliament in April 2009.  However, 
as the Nano Trust website points out, it will be difficult to 
regulate nano-materials in food because most food components are 
already nano-structured and it is hard to distinguish between those 
that occur naturally and those that are man-made. 
 
COMMENT 
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¶10. (SBU) As Austria moves towards "nano-labeling" and perhaps 
"nano-free" labels -- either domestically, or in support of EU-level 
efforts -- we will closely monitor implications for U.S. producers. 
We understand that one potential impact is on animal feed, where 
nano-additives to reduce moisture/mold are starting to appear (NOTE: 
30-40% of Austria's soybean feed comes from the U.S. and the rest 
mostly from South America).  Ready-to-eat meals (a growing import 
from the U.S.) and cosmetics represent another potential trade 
impacts.  The key question is whether the Austrian media and public 
will view nanotechnology as a step forward in material sciences and 
electronics (i.e. essentially neutral) or as a dangerous 
life-altering technology as with nuclear power and transgenic food. 
 END COMMENT. 
 
HOH