The development of NANO-technologies follows the path of Feynman’s linear approximation of the element minimization method. With this approach, the construction of artificial structures relied on microscopic (quantum) models. However, the output of such NANO-technologies typically didn’t exactly correspond to the intended outcome, but to a result that required further understanding and further learning. This is why processors require regular updates of the HIOS. The heuristics of this development path for NANO-technologies are close to zero, so NANO-technologies have become mere empiricism. Achieving UNDERSTANDING what and how to do things, and UNDERSTANDING what NANO-technologies actually do, is possible only by considering two fundamental physical aspects that are essential at the NANO-scale: 1. Local Thermodynamic Effects, determined by Prigogine’s Flow Thermodynamics, must be taken into account. 2. It is necessary to consider the experience of “Living Nanotechnology,” which relies not on “dead” Boltzmann statistics, but on statistics with information accumulation and on the fractal construction of Life from below, from fullerenes to minimal fractals and beyond. And both of these aspects must be considered both at the design stage of the required device’s functionality and in the formation of the NANO-structure itself.