South Korea ranks fourth in the world in nanotechnology development behind the U.S., Japan and Germany.

That's according to a survey by New York-based Lux Research on state and corporate R&D investment, size and quality of government or university-led nanotech centers, and the technological development capabilites of 14 countries.

The leading global nanotech research and advisory firm called the top four countries the industry leaders, adding that Japan was close on the heels of the top-ranked United States.

The report attributed South Korea's nanotech prowess to its healthy mix of technological advancement and high level of state and private investment. It said the nation's high-tech production output accounts for 16 percent of its gross domestic income, while three percent of the figure goes to R&D spending.

The Science and Technology Ministry is preparing a new development plan for nanotechnology to raise the country's ranking to third by 2015.