The Quantum Strategy Institute’s new report, by Petra Soderling and Brian Lenahan, analyzes the drivers and effects of introducing export controls in the quantum sector. As governments seek to safeguard national security and strategic economic interests, these policies can have far-reaching effects on global collaboration, innovation, and talent mobility.
The report explores the complex balance between protecting critical technologies and supporting a thriving, internationally connected quantum ecosystem, read it here: Export Controls & Quantum Technologies.
Report Authors
Petra Soderling
Petra Söderling, Head of Government and Consortium Relations at the Quantum Strategy Institute (QSI).
Petra Söderling has over 25 years of experience in the technology industry, having held key positions in standardization, open source, research, and product management at Nokia. She has an MBA from Helsinki University of Technology, and executive education from Harvard Business School and Stanford University.
Being Finnish-American, she has been instrumental in ramping up trans-Atlantic relationships in quantum since 2020. She is also a key contributor to EU’s quantum strategy, financing, standardization, and international relations. Petra Söderling is the author of Government and Innovation – the Economic Developer’s Guide to our Future.
Brian Lenahan
Brian Lenahan, Brian Lenahan is Founder & Chair of the Quantum Strategy Institute and the author of seven published books on quantum technologies and artificial intelligence.
He is a recognized speaker and moderator at conferences around the world and a global consultant on the strategy of road mapping quantum and AI tech adoption. He is the author of Quantum’s Business Substack, enjoyed by thousands of readers in over 90 countries.
Brian is a three-time LinkedIn Quantum Top Voice. He leverages all of his media platforms to augment the work of QSI in accelerating the adoption of quantum technologies worldwide.
Quantum technology represents a significant leap in scientific and technological progress, holding the potential to significantly progress fields such as computing, cryptography, communications, and sensing. National quantum strategies are essential for countries aspiring to lead or maintain competitiveness in this transformative domain. A successful national quantum strategy involves a multifaceted approach that integrates research and development (R&D), education, industry partnerships, infrastructure, international collaboration, and policy frameworks.
This report explores how countries can design and implement successful national quantum strategies to harness the full potential of quantum technology.
1. Comprehensive Research and Development Ecosystem
Investing in Fundamental Research
A robust R&D ecosystem is the cornerstone of a successful quantum strategy. Countries must prioritize sustained investments in fundamental research, which forms the foundation for technological advancements. Governments should fund academic institutions, research centers, and laboratories to explore various quantum phenomena and develop new theories and technologies while establishing milestones for key results against such funding. Establishing national quantum research institutes can centralize efforts and foster collaboration among top scientists.
Encouraging Interdisciplinary Collaboration
Quantum technology spans multiple disciplines, including physics, computer science, mathematics, and engineering. Encouraging interdisciplinary collaboration can accelerate innovation. Research initiatives should bring together experts from these diverse fields to address complex quantum challenges. For example, quantum computing requires insights from both computer scientists and quantum physicists to develop algorithms and hardware. Such collaboration can extend across geographical borders and should not operate in isolation from best practices of other successful groups.
Public-Private Partnerships
Public-private partnerships (PPPs) can enhance R&D efforts by combining public funding with private sector expertise and resources. Governments should incentivize private companies to invest in quantum research through grants, tax breaks, and collaborative projects. For instance, tech giants like IBM, Google, and Microsoft have made significant strides in quantum computing through such partnerships, which benefit from both public research funding and private sector innovation capabilities. Once again these partnerships should be aligned with key result metrics and goals.
2. Building a Skilled Workforce
Education and Training Programs
Developing a skilled workforce is crucial for the success of any national quantum strategy. Countries should invest in education and training programs to produce quantum scientists, engineers, and technicians. Universities should offer specialized degree programs in quantum science and engineering. Additionally, governments can fund scholarships and fellowships to attract talented students to these fields.
Continuous Professional Development
Given the rapid evolution of quantum technology, continuous professional development (CPD) is essential. Providing opportunities for current professionals to upskill through workshops, short courses, and online programs can keep the workforce updated with the latest advancements. Collaboration with industry players to create tailored CPD programs can ensure that the training is relevant and practical.
International Talent Attraction
To build a world-class quantum workforce, countries should also attract international talent. Offering competitive salaries, research grants, and favorable immigration policies can help attract leading scientists and engineers from around the world. Establishing renowned research institutions can also serve as a magnet for global talent.
3. Developing Quantum Infrastructure
Quantum Computing Facilities
State-of-the-art quantum computing facilities are critical for advancing quantum research and development. Governments should invest in building and maintaining these facilities in-country, which include quantum computers, simulators, and related infrastructure. Ensuring access to these facilities for academic researchers, startups, and industry partners can democratize innovation and foster a collaborative environment.
Quantum Communication Networks
Quantum communication networks, particularly those using quantum key distribution (QKD), are increasingly essential for secure information transfer. Countries should invest in building and expanding these networks to protect sensitive data and communications. National initiatives could include creating a quantum internet, which leverages quantum entanglement for ultra-secure communication.
Standardization and Interoperability
Developing standards for quantum technologies is crucial for ensuring interoperability and facilitating widespread adoption. National bodies should work with international organizations to create and adopt standards for quantum hardware, software, and communication protocols. Standardization can also help reduce costs and accelerate market entry for new quantum products and services.
Countries considering the maturity levels of quantum technology should understand the array of data, like the tables and graphs produced by Global Quantum Intelligence, to understand, in particular the eras of quantum evolution and how that impacts research and commercialization opportunities.
4. Promoting Industry and Innovation
Supporting Quantum Startups
Encouraging entrepreneurship in the quantum sector can drive innovation and economic growth. Governments should create supportive ecosystems for quantum startups, including providing seed funding, incubation facilities, and mentorship programs. Establishing innovation hubs and clusters can facilitate collaboration among startups, academic institutions, and established companies.
Technology Transfer and Commercialization
Effective technology transfer mechanisms are essential for translating research breakthroughs into commercial products. Governments can support this process by establishing technology transfer offices (TTOs) within universities and research institutions. These offices can help researchers patent their discoveries, navigate the commercialization process, and connect with potential industry partners.
Market Incentives and Demand Creation
Creating market incentives for adopting quantum technologies can stimulate demand and drive industry growth. Governments can implement policies such as tax credits for businesses that integrate quantum solutions or procure quantum technologies for public sector use. Public sector procurement can serve as a catalyst for early-stage quantum technologies, providing companies with the necessary market validation and revenue.
5. International Collaboration
Bilateral and Multilateral Agreements
International collaboration is vital for advancing quantum technology, given its global nature and the significant resources required. Countries should engage in bilateral and multilateral agreements to share knowledge, resources, and expertise. Collaborative projects with leading quantum research nations can accelerate progress and avoid duplication of efforts.
Supply chains.
Many countries seem much more open to collaborating with each other. As computers get more mature and being used for real use cases by real companies, people realize ” our system is only as strong as the weakest link in our supply chain” (quote from one Cleveland Clinic doctor).
Export control and standards.
Again, like-minded countries want to collaborate more with example such as AUKUS mentioned and NATO. Also, implementing the concept of free trade zones in friendly countries that could freely exchange products, people and intellectual property.
Participation in Global Initiatives
Active participation in global quantum initiatives, such as the Quantum Flagship in Europe or the National Quantum Initiative in the United States, can provide countries with access to cutting-edge research and funding opportunities. Consortiums like QED-C and Europe’s QuiC are also extending membership beyond national borders. These initiatives often involve cross-border collaborations and offer platforms for sharing best practices and standardization efforts.
Addressing Ethical and Security Concerns
Quantum technology raises significant ethical and security concerns, particularly regarding quantum computing’s potential to break current cryptographic systems. International collaboration is essential to address these issues through the development of new cryptographic standards and ethical guidelines. Countries should work together to ensure that quantum technologies are used responsibly and for the benefit of all.
6. Policy and Regulatory Framework
Strategic Roadmaps and National Policies
A clear and comprehensive policy framework is essential for guiding national quantum strategies. Governments should develop strategic roadmaps that outline their vision, goals, and priorities for quantum technology. These roadmaps should be regularly updated to reflect technological advancements and changing global dynamics. National policies should also address funding allocation, regulatory standards, and public-private partnerships.
Intellectual Property Rights (IPR) Protection
Protecting intellectual property rights is crucial for fostering innovation in quantum technology. Governments should ensure that robust IPR frameworks are in place to protect the discoveries and inventions of researchers and companies. Simplifying the patent process and providing support for navigating IPR issues can encourage more entities to invest in quantum research.
Ethical and Security Regulations
Developing ethical guidelines and security regulations specific to quantum technologies is essential. Governments should establish regulatory bodies to oversee the ethical use of quantum technologies and ensure compliance with security standards. These bodies can also address potential misuse of quantum technologies and safeguard national security interests.
How Do We Define “Winning”?
The only relevant definition of success is the one created for oneself. As a nation, each country determines its priorities, strategies and tactics to achieve those priorities. So, when we considered winning strategies for quantum technologies, we recognize our readers will argue that their quantum choices must be viewed within the context of their overall priorities.
To win in quantum, we will look at a number of factors, including level of investment,
The top 15 countries have committed anywhere between $250 million to $4 billion over various time periods (excluding the often disputed $15 billion committed by China). The UK leads with over $4 billion committed though the US $3.1 billion which excludes a significant Department of Defence spend.
Quantum Investment by Country (Updated to June 2024)
The graphic below, aggregated by Qureca, identifies the investments by country to June 2024 totaling $42 billion worldwide.
Quantum Companies:
The United States leads by a long way with 459 quantum companies of all modalities with 36% of the total of the top 15 countries.
The number of quantum involved universities has flourished in the past decade with the top 15 countries being home to 453 institutions devoting time and resources to quantum in their curricula.
Quantum Universities
For those countries looking to establish a quantum ecosystem through private investment, they would be wise to look to the US, UK and Japan for models given the material number of quantum investors today.
Quantum Investors
Amongst the top 15 countries for quantum enterprise users, Japan has an outsized role relative to other metrics with the second-most number of organizations.
Quantum Users
The United State leads quantum users environment by a significant margin and would be a reasonable locale to look for best practice opportunities.
Quantum Patents
Over 67,000 patents have been registered for quantum technologies with half coming from China. The World Intellectual Property Organization and the European Patent Office are actively involved in quantum technologies today with 16% of total quantum patents.
The world of quantum research has blossomed over the last decade with researchers devoting their time to every aspect of quantum physics, mechanics and technologies. China and the US from the beginning have led the research effort.
National Quantum Strategies*
Latvia 2016 1 No Signed
Lithuania 2023 No No Not Signed
Luxembourg 2021 10 No Signed
Malta 2016 No No Not Signed
Netherlands 2018 1 Yes Signed
Norway (EFTA) 2019 No No Not Signed
Poland 2019 No No Signed
Portugal 2019 No No Signed
Romania 2022 No No Signed
Slovakia 2021 No No Signed
Slovenia 2016 No No Signed
Spain 2019 No No Signed
Sweden 2020 No Yes Signed
Case Studies: National Quantum Strategies
United States
The United States has implemented a comprehensive national quantum strategy through the National Quantum Initiative (NQI). The NQI Act, passed in 2018, established a coordinated approach to quantum research and development across multiple federal agencies. The strategy includes significant funding for quantum research, the establishment of Quantum Information Science (QIS) Research Centers, and strong public-private partnerships. Additionally, the U.S. focuses on international collaboration, participating in global quantum initiatives and fostering bilateral agreements.
European Union
The European Union’s Quantum Flagship initiative represents a long-term, large-scale research program aimed at advancing quantum technologies. With a budget of over €1 billion for the first ten years, the Quantum Flagship supports a wide range of projects across quantum computing, communication, simulation, and sensing. The initiative emphasizes interdisciplinary collaboration, industry participation, and international cooperation. The EU also prioritizes standardization and the development of a skilled quantum workforce through education and training programs.
China
China has made significant strides in quantum technology, driven by substantial government investment and strategic planning. The country has established leading quantum research institutions, such as the Hefei National Laboratory for Physical Sciences at the Microscale. China’s national quantum strategy includes developing a quantum communication network, advancing quantum computing capabilities, and fostering a skilled workforce. The government’s commitment is reflected in significant funding allocations and the establishment of dedicated quantum research programs.
Canada
Canada’s national quantum strategy is characterized by strong government support, world-class research institutions, and a vibrant quantum ecosystem. “The NQS revolves around three key pillars: research, talent and commercialization.” The country invests heavily in fundamental research through organizations like the Canadian Institute for Advanced Research (CIFAR) and the Institute for Quantum Computing (IQC) at the University of Waterloo. Canada’s strategy includes fostering industry partnerships, supporting quantum startups, and promoting international collaboration. The government also prioritizes education and training to build a skilled quantum workforce.
Conclusion
A successful national quantum strategy requires a holistic approach that encompasses research and development, education and training, infrastructure development, industry support, international collaboration, and a robust policy framework. By investing in these areas, countries can position themselves at the forefront of the quantum revolution, unlocking new economic opportunities and addressing critical societal challenges. The examples of the United States, the European Union, China, and Canada illustrate different pathways to achieving success in the quantum domain. Ultimately, the collaborative and strategic efforts of nations will determine the global landscape of quantum technology in the coming decades.
Introduction to QSI’s Post-Quantum Cryptography Series
Governments around the world are beginning to prepare themselves for the quantum threat. Even though quantum computers may not be prevalent in any commercial sense in years, national security requires for sensitive data and documents to be quantum proof well in advance. No one wants their opponents to get access to five-year-old, or even ten-year-old, sensitive material.
But how, exactly, are nations approaching post-quantum cryptography (PQC)?
Petra Söderling, Head of Government and Consortium Relations at the Quantum Strategy Institute (QSI).
Söderling is a Finnish American award-winning innovation leader who thinks that governments have an unrecognized role in creating new innovations, new industries even.
Söderling is currently an advisor with the World Bank on development and application of deep technologies. She is the author of Government and Innovation, a 2023 book that that looks at how local, regional, and national governments can use existing instruments to steer their economies to include more innovative industries that provide a higher economic value-add.
Introduction to QSI’s Post-Quantum Cryptography Series
Governments around the world are beginning to prepare themselves for the quantum threat. Even though quantum computers may not be prevalent in any commercial sense in years, national security requires for sensitive data and documents to be quantum proof well in advance. No one wants their opponents to get access to five-year-old, or even ten-year-old, sensitive material.
But how, exactly, are nations approaching post-quantum cryptography (PQC)?
Petra Söderling, Head of Government and Consortium Relations at the Quantum Strategy Institute (QSI).
Söderling is a Finnish American award-winning innovation leader who thinks that governments have an unrecognized role in creating new innovations, new industries even.
Söderling is currently an advisor with the World Bank on development and application of deep technologies. She is the author of Government and Innovation, a 2023 book that that looks at how local, regional, and national governments can use existing instruments to steer their economies to include more innovative industries that provide a higher economic value-add.
Danika Hannon
Danika Hannon, Deputy Head and International Quantum Strategy Day Chair of QSI.
In her role with QSI, Hannon writes thought leadership on quantum computing and business development, plus she leads International Quantum Strategy Day, which features a global strategy competition.
Hannon was in the top 10 Top Quantum Voices in the 2024 international thought leadership ranking from Barcelona bqb. In addition, Hannon’s earning a Cybersecurity Master’s degree and will be graduating from the University of North Dakota in December 2024.
The Quantum Strategy Institute (QSI) is an international network of cross-domain experts with a rich and varied expertise. Tasked to accelerate the market adoption of quantum technologies, QSI looks at both enablers and hurdles businesses face in making these complex, forward looking decisions. We drive the exploration and further the understanding of the practical applications of quantum computing across industries and to help bridge the white space between potential and practicality.
For an industry that is on the verge of commercial expansion, this includes forming new industry consortiums, adding new working groups to existing consortiums, and forming interactive industry relationships with the policy making governments.
In this series of papers under QSI’s Government and Consortium Relations pillar, we’ll explore the global landscape of these initiatives. This paper, third in the series, introduces Q-STAR, Quantum Strategic Industry Alliance for Revolution. Q-STAR gathers Japanese companies and academic organizations under one roof to steer Japanese quantum research, development, and commercialization of quantum technologies into the future.
History
The alliance for officially formed in September 2021 as a voluntary organization by members of the Japanese high-tech industry. The founding meeting included a Japanese all-star team of Canon, Fujitsu, Hitachi, Mitsubishi Electric Corporation, Mitsui Sumitomo Insurance Company, Mizuho Financial Group, NEC, Nippon Telegraph and Telephone Corporation, Sumitomo Corporation, Toshiba, and Toyota Motor Corporation.
Japan has a long, successful history in creating and launching technological inventions. Many of the founding companies of Q-STAR have developed high tech products and services for decades. It was time to ensure this Japanese tradition also carries forward in the quantum era. The anticipation and expectation for quantum-led, or quantum adjacent technologies also brings upon as the realization that we all need to work together to create a safe and secure living environment for countries around the world. Japan’s innovation thread is tightly woven into this international fabric, so the Japanese industry is a natural party to take leadership in developments in and around quantum.
The goal for the alliance from the get-go was to leverage Japan’s technological superiority in materials, devices, measurement technology, computers, communications, simulations, and so on, and to create new industries through the provision of services that take advantage of these enablers. With the help of the alliance, Japan aims to become a firmly established “quantum technology innovation nation” on a global scale.
By demonstrating global leadership and promoting activities that contribute to the development of science and technology, Q-STAR will contribute to the realization of this “quantum technology innovation nation,” while promoting Japanese industry and strengthening its international competitiveness.
Since its founding meeting in September 2021, Q-STAR held monthly executive committee meetings quickly ramping up the organization and operations. By February 2022, the Alliance already had over 50 members, and on the World Quantum Day in April 2022, Q-STAR joined a global announcement with its peer organizations Quantum Industry Canada (QIC), Quantum Economic Development Consortium (QED-C), and European Quantum Industry Consortium (QuIC). Q-STAR’s establishment was already internationally recognized, although it only became a general incorporated association in May 2022 with full scale activities.
As said Mr. Taro Shimada, Representative Director, Association for Creation of New Industries by Quantum Technology (President and CEO, Toshiba Corporation):
“We aim to build a society that can use quantum technology without being conscious of it. In addition, we will accelerate the transition to quantum technology through industry-government-academia integration. Furthermore, in line with economic globalization, we will promote the globalization of quantum technology in order to accelerate the progress and practical application of quantum technology through international cooperation. Q-STAR aims to be a council that can contribute to the development of society by actively promoting cooperation with quantum-related organizations not only in Japan but also overseas, for the development of quantum technology and future social implementation.”
Since the official incorporation, the alliance has held three board meetings, spoken in a number of conferences, webinars, given academic lectures, and participated in international activities.
Organizational Structure
As a voluntary industry association, Q-STAR operates with the principle of rotating responsibility.
The organizational structure includes a Chairman, Vice Chairman, Board of Directors, and Executive Officers. The Chairman is at the top of the structure and oversees the alliance’s operations and strategic direction. The Vice Chairman supports the Chairman and may assume their responsibilities when necessary. The Board of Directors is responsible for making key decisions and setting policies. Executive Officers manage specific functional areas and implement the alliance’s strategies.
Industry Focus
Objectives
The strategy of Q-STAR is organized around a number of activities that support Japan’s overarching goal to become a quantum technology innovation nation. The alliance is to investigate and research general trends in quantum technology, including devices and materials, and share information among top management within industry so they stay informed and can take appropriate action. Similarly, the alliance conducts research and proposes where quantum technology can be applied to other industries in multiple fields.
Q-STAR is also the Japanese industry’s top resource when it comes to studying and understanding the needs to develop human resources in the country in order to make the most of its quantum technology advancements. Equally, this group will study and suggest systems and principles for intellectual property and standardization, ethics and trust required for the implementation of quantum technology.
The alliance is also tasked to cooperate with other organizations, both domestic and overseas, working in quantum-related areas, in order to promote Q-STAR’s objectives, raise public awareness, and make policy recommendations.
Subcommittees and Working Groups
The work that supports Q-STAR’s objectives is divided into subcommittees and working groups. All technical work resides in one of the five subcommittees, and non-technical work is within one of the eight working groups.
Each subcommittee is led by industry experts from that field.
Subcommittee on Quantum Wave and Quantum Probability Theory Applications
Tasked with exploring the creation of new industries using quantum amplitude estimation and optimization. The objective is to create industries with the potential to become mainstays in various areas while also spanning multiple industries, including the financial sector, which has a close affinity with these technologies.
Subcommittee on Quantum Superposition Applications
Tasked with taking a broad view of the systems, services, and businesses created by the application of quantum superposition, the most important capability of quantum computers. It will also examine changes in existing industries and industry structures that will result. By collaborating with users and vendors to draw a new image of society, the aim is to create new industries that will become future pillars and mainstays of industry, and that span multiple industries.
Subcommittee on Optimization and Combinatorial Problems
Tasked with using quantum-inspired computing technology (Ising Machine) that almost instantaneously selects the optimum solution from among an enormous number of combinations to solve diverse problems facing industry in areas including real-time prediction, efficiency, and optimization.
4. Subcommittee on Quantum Cryptography and Quantum Communications
Tasked with examining business use of quantum cryptography communication, a technology already available, and aim to open up a future pioneered by communications that guarantee information-theoretically security.
5. Quantum City Promotion Committee
This committee deepens use cases related to social infrastructure development that can be used to try the social implementation of quantum technology from various angles, create new industries through demonstration experiments, and aim for social implementation in Japan and overseas.
The supporting working groups are:
Policy Recommendation Working Group
Standardization Coordination and Proposal Working Group
Testbed Collaboration Working Group
R&D Collaboration Working Group
Overseas Industry Collaboration Working Group
Long-Term Roadmap Formulation Working Group
Legal and Compliance Working Group
Human Resource Development Working Group
International Collaboration
As the working language of Q-STAR is Japanese, there is a dedicated working group to ensure all members of the alliance will have a chance to network with their international colleagues. This is the Overseas Industry Collaboration Working Group.
In this series of papers under QSI’s Government and Consortium Relations pillar, we’ll explore the global landscape of these initiatives. This paper, second in the series, discusses the European QuIC, the European Quantum Industry Consortium.
In our quest to accelerate the market adoption of quantum technologies, the Quantum Strategy Institute (QSI) looks at both enablers and hurdles businesses face in making these complex, forward looking decisions.
For an industry that is on the verge of commercial expansion, this includes forming new industry consortiums, adding new working groups to existing consortiums, and forming an interactive industry relationship with the policy making governments.
In this series of papers under QSI’s Government and Consortium Relations pillar, we’ll explore the global landscape of these initiatives. This paper, first in the series, discusses the US-based Quantum Economic Development Consortium (QED-C).
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