This paper examines the industrial incentives for commercialising advanced materials
and, in particular, nanomaterials with reference to issues raised in the technology strategy and
technology entrepreneurship literature. We draw on longitudinal empirical data to show that
smaller and newer firms are playing an increasing role in the commercialisation of advanced
materials innovations. However, new technology based firms face substantial barriers to
commercialisation, including access to the complementary assets of large firms and
institutions. To illustrate these challenges, we examine a case study of a start-up firm
commercialising carbon nanotubes. Through use of an open systems model, we characterize
their alliances and interactions in attempting to commercialise their products in several markets.
This analysis illustrates the daunting challenges facing start-up firms as they attempt to
commercialise advanced materials innovations. The most difficult challenge appears to be one
of prioritisation of development objectives and, subsequently, of alliance building. Proposed
policy recommendations focus on supporting the entrepreneurial process of matching technology
resources and alliance-building with market opportunities
