Banking for 7 billion and 7 million

GLOBAL INVESTOR 3.06
Editorial — 0
The next big thing: Small? In this issue we prove once and for all
that size really does matter. From the world’s emerging mega-cities
to the marvels of nanotechnology, Global Investor’s fresh perspectives
on fascinating global trends bring some interesting opportunities
to light. Not least of these is nanotechnology. Put simply, nanotechnology
is the science of small, measured in billionths of a meter.
An enabling technology that will be embedded in materials and equipment,
it could change science, medicine and industry dramatically. It
may not only affect the way we live, but how long we live. Medical
advances could result in a substantial increase in the number of
elderly. Some have made Malthusian predictions, but I prefer to be
an optimist. Every major technological advance has entailed adjustments
but, over time, quality of life has generally improved. Nanotechnology
could allow developing economies to leapfrog older
technologies. In Asia, China leads in terms of national planning,
research and funding, South Korea in patents and public-private
sector cooperation, and India in commercializing technology.
For investors, nanotechnology presents a Rubik’s cube of possibilities.
What can be commercialized? Which countries will gain
competitive advantage? How will demographics be affected? Disruptive
and transformational, nanotech could severely impact existing
industries and commodities. For example, if ceramics can be
made strong and light, what would happen to the market for steel?
The article on page 53 gives answers to these questions and more.
While developments may be years away, opportunities exist for
those willing to make a long-term investment. Consider transistors,
the basis of today’s computer technology, which were invented in
1947. The integrated circuit was created 11 years later. Investors did
not see a handsome return until the 1980s – 40 years after the
initial technological breakthrough. Credit Suisse is already a keen
observer of nanotechnology. That’s no surprise – for 150 years,
we’ve celebrated a tradition of innovation. We know that, with the
right advice, small may be bountiful.
Enid Yip, Hong Kong Branch Manager