MEMS systems are cool, but very different from nanotechnology. Micro => micrometers, nano => nanometers, so nanosystems are a factor of 1000 smaller in linear dimensions, and 1000 x 1000 x 1000 = 1,000,000,000 times smaller in volume.
It's nanotechnology that will work with molecules to build things from the bottom up, and turn our whole technology base upside down. This is a technology race that we can't afford to lose.
I received a Sci Fi book for Christmas several years back which chronicled a war between the Earth and the Lunarites who practice nanotechnology which is banned on Earth. The book contained some marvelous specualtions about the capabilities of nanotechnology. Couldn't put my hand on the book. I have a bad habit of loaning books! Title was something like Moon Wars.