Penn State receives funding for nanotechnology from the federal government, private industries and state funds such as BFTDA.

The BFTDA is a Pennsylvania-based program that provides grants to organizations and institutions that use the advancement of technology in businesses and communities.

Foley said the money will be used to promote commerce of nanotechnology and to improve the existing facilities.

It will also be used for technology and workforce development and for new research and development projects by graduate and undergraduate students at Penn State.

"We want to reach beyond the Penn State community," Foley said. "We are using our facilities to help other students, teachers and industries outside of Penn State."

Steve Fonash, director of the Center for Nanotechnology Education and Utilization, said the grant will help Penn State continue its partnership with two-year colleges.

"Students come and work at the nanotechnology fabrication laboratory and can receive a technician degree from their community college," Fonash said. "Thanks to Penn State, there is now a two-year degree in nanotechnology."

Fonash said Penn State added an official concentration in nanotechnology this year.

A large portion of the grant will be spent on educating students and preparing them for the workforce, he said.

"Penn State is a land grant school; it should be making sure Pennsylvania will have a strong work force," Fonash said. "This grant is offering students a chance to be ready for the future."

Brenda Gavin, a member of the BFTDA Board of Directors, said the company is one of the largest single state technology development programs in the United States.

"We have granted $54.3 million to various organizations in Pennsylvania," Gavin said. "This is the third year we have given to Penn State for nanotechnology development, and they are using the grant to do wonderful things for our state."