Alberta will go big on the science of small to grab a share of the world's leading-edge nanotechnology industry, Premier Ed Stelmach announced Wednesday.

Stelmach said the province will invest $130 million over five years to capture a forecasted $20 billion slice of the market.

"Technology commercialization is the currency of the global marketplace and we must be able to deal in every denomination," Stelmach told 100 industry members and academics at the National Institute for Nanotechnology, located on the University of Alberta campus in Edmonton.

"Our strategy will ensure a robust economic future with more high-paying jobs and a reduced dependence on the most volatile revenue stream in North America, and that's oil and gas."

Nanotechnology seeks to manipulate the behaviour of materials that range from one to 100 nanometres for applications in medicine, engineering, computing and telecommunications.

By comparison, a human hair is about 80,000 nanometres thick.

The technology is already used to create tiny sensors to detect cancer cells and enhance the bonding and durability of hip implants. It can monitor the stress on airplanes and can provide pinpoint analysis of oilsands composition to improve extraction.

The institute estimates the worldwide market for nanotechnology-derived goods and services could hit $1.5 trillion US in the next seven years.

About $30 million of the new money will go to recruiting experts in the field. Earlier this year, leading chemist Dr. Richard McCreery was lured from Ohio to Edmonton.

Another $15 million will go to graduate student scholarships in nanotechnology.

There will be another $15 million to help industry and researchers work together on nano-related projects.