Written evidence submitted by the Department for Science, Innovation and Technology (QUA0037)

 

Executive Summary

The UK is in a strong global position on quantum technologies, thanks to the foundations laid by the National Quantum Technologies Programme established in 2014 which has grown a world class research base, and industrial strengths which have led to recent commercialisation successes. But the UK is facing an increasingly competitive global ecosystem where the global race is accelerating, and other nations are putting significant efforts into realising the value from these technologies. With the right investment and intent, the prospects for the UK quantum industry are excellent and through the 2023 National Quantum Strategy we will secure our position as a key global player in quantum technologies. It’s too early in the development of these technologies to take a wholly targeted approach to supporting one technology or platform. Our strategy is to develop an integrated science, research, technology and innovation ecosystem by:

i)                    Growing the research base and skills

ii)                   Supporting business and the development of the supply chain, using missions to catalyse co-investment, drive societal benefits and show leadership in the UK

iii)                 Championing adoption through procurement and readiness activities

iv)                 Ensuring the UK has a pro-innovation regulatory environment

 

Question

Response

1. What has been the recent progress made on quantum technologies and what is their potential impact on society or the economy?

Quantum technologies have the potential to critically impact many aspects of society and the economy including productivity, health and national security. Quantum technologies can surpass the performance of previous state-of-the-art technologies and perform tasks that are unattainable with existing technologies. For example, quantum imaging can produce cameras that could see around corners and quantum computers have the potential to exponentially speed up certain calculations versus conventional supercomputers. They will unlock innovation through integration with a wider suite of technologies. For example, impacting on industries including future telecoms networks, space, defence, health, AI, high performance computing, photonics and semiconductors.

 

These technologies provide both opportunities for and threats to our security and national infrastructure. The most well-known threat relates to improved abilities to decrypt previously secure data through the use of quantum computing. Quantum readiness is a priority activity for both the government and industry, to ensure that threats can be mitigated and opportunities can be exploited.

 

The UK has already developed new quantum devices across computing, communications, sensing and timing that are being trialled globally. Notable examples include wearable brain scanners that will improve our understanding of neurological disorders (developed by the University of Nottingham) through offering higher sensitivity and precision at low cost [1]. Wearable brain scanners also allow participants to move freely during a scan, unlike conventional brain scanners which are large, heavy, one-size-fits-all, and require participants to remain still for long periods of time. Miniaturised atomic clocks have been developed that will end dependence on satellites for timing [2], as well as sensors which can accurately detect and quantify greenhouse gas emissions (developed by QLM Technology from the University of Bristol) [3]. These represent applications of quantum technology that have already reached commercial trials whilst others may take up to 10 years before becoming widely adopted [4].

2. What are the strengths and weaknesses of the UK National Quantum Technologies Programme and how has this shaped the UK quantum industry?

A key strength of the National Quantum Technologies Programme (NQTP) is its structure as a long-term alliance and commitment between academia, industry and government. Research, innovation, infrastructure and training investments and activities mutually support each other across the programme. The success of the Programme can be seen in other countries taking inspiration from its model, such as Canada and the Netherlands [5], [6].

 

As part of an overall £1 billion investment in the 10-year NQTP, since its creation in 2014, the government has invested £214 million in the four NQTP Research Hubs, generated over 470 PhD candidates and supported businesses which have accumulatively attracted over £425 million of investment [7]. The Quantum Technology Research Hubs have claimed many firsts in quantum technologies, including first industrial demonstrations of a quantum gravimeter (capable of sensing objects underground), the first chip-to-chip Quantum Key Distribution (QKD) encrypted transmission, and achieving a world record performance in ion trap quantum computing [8]. Through the UKRI Commercialising Quantum challenge, the government has funded 139 projects involving 141 quantum organisations [9].

 

The UK has quantum facilities and centres of excellence spread across all regions of the country, with significant investments made in government-owned infrastructure to support industry and the development of new quantum products. However, the UK lacks a UK-owned IT major which presents a challenge in terms of co-ordinating systems integration at scale or pace, and lacks commercial-grade fabrication facilities which the sector will need to increasingly rely upon in the future. The Royal Academy of Engineering will be undertaking a review of the sector’s long-term infrastructure requirements to plan for future needs.

 

As the first ten years of the NQTP come to an end, the UK’s quantum ecosystem told us of their need for long-term stability and clarity. The £2.5 billion committed to the National Quantum Strategy provides this [10]. For the UK quantum industry to achieve its potential, it will be important for future governments to support the commitments and objectives set out in the ten-year National Quantum Strategy.

3. What are the prospects of the UK quantum industry and how do these compare to other nations with strengths in quantum?

The UK quantum industry has excellent prospects, enabled by our early mover advantage from the establishment of the NQTP in 2014. The UK is home to the largest number of quantum start-ups in Europe [11], has leading businesses across the quantum supply chain exporting to global markets and is in the top five across a range of metrics for global academic excellence [12]. We have attracted 12% of global private equity investment into quantum technology companies between 2012 and 2022 [13] and businesses supported by the UK Commercialising Quantum Challenge have raised over £425 million in private sector financing [14]. The UK also attracts leading global companies because of its vibrant quantum ecosystem, including IBM, Google, Fujitsu, Rigetti, Infleqtion and PsiQuantum. The quantum industry will need to be global and working with allied nations with leading quantum programmes is an important component of the UK’s approach.

 

Foreign Direct Investment will be vital to the growth of the industry, however this reliance increases the chances of UK start-ups relocating abroad, selling early to foreign companies or listing on foreign capital markets. The global quantum sector is also becoming increasingly competitive with comparator countries including France and Germany launching well-funded quantum strategies [15], [16].

4. What interventions are required from Government, industry and academia in order to drive the commercialisation of quantum technologies?

Accelerating the commercialisation of quantum technologies will need a whole system approach as part of a cross-government effort, in line with the pillars of the Science and Technology Framework. It will also require close collaboration between government, industry and academia.

 

The National Quantum Strategy sets out a number of ambitious goals to achieve by 2033 that will accelerate the commercialisation of quantum technologies (National Quantum Strategy, pg. 11-12).

  • Ensuring the UK is home to world-leading quantum science and engineering, growing UK knowledge and skills
  • Supporting business, making the UK the go-to place for quantum businesses and an integral part of the global supply chain, as well as a preferred location for investors and global talent
  • Driving the use of quantum technologies in the UK to deliver benefits for the economy, for society and for our national security
  • Creating a national and international regulatory framework that supports innovation and the ethical use of quantum technologies and protects UK capabilities and national security

 

Our interventions will ensure that by 2033:

  • The UK has a 15% share of the global quantum technologies market and 15% of the total global private equity investment into quantum technology companies
  • All key businesses within key relevant sectors of the UK will be aware of the potential of quantum technologies and 75% of relevant businesses will have taken steps to prepare for the arrival of quantum computing
  • The UK will be a global leader in establishing global standards for quantum. We will have bilateral arrangements with 5 further leading quantum nations, based on substantive collaborative work programmes
  • We maintain our top 3 position in the quality of our quantum science publications, whilst increasing the volume of our research publications. We will have funded an additional 1,000 postgraduate research students in quantum relevant disciplines

 

5. Are the vision and actions set out in the government’s new quantum strategy fit for purpose?

The actions set out in the National Quantum Strategy will ensure the UK is a leading quantum-enabled economy by 2033. It will ensure that quantum technologies are an integral part of the UK’s future digital infrastructure and advanced manufacturing base, driving growth and helping to build a thriving and resilient economy and society.

 

The strategy goals are aligned with UK strengths in quantum technologies and the Science and Technology Framework and will help the UK to achieve its goal of becoming a science and technology superpower.

 

Now is the right time for the UK to send a strong signal of intent by reaffirming our commitment to being a leading quantum nation and to maintain our advantage in the face of an increasingly competitive international ecosystem.

 

 


             

Introduction

The government welcomes the House of Commons Science & Technology Select Committee’s inquiry on Commercialising Quantum Technologies. We agree with the Chairs comment that ‘We currently punch above our weight in developing quantum technologies but face fierce competition’ and that the UK is currently a leader in quantum technologies. As we implement the new National Quantum Strategy, we will take advantage of our strong position in the global quantum ecosystem and secure our place as a key player in the face of increasingly fierce competition.

As set out in the National Quantum Strategy, the UK has a world-leading position in quantum technologies, and the government's plan for the next ten years aims to capitalise upon this. We have set the goal for the UK to be a leading quantum-enabled economy by 2033, with a world leading quantum sector. This will be achieved by committing £2.5 billion to developing quantum technologies in the UK over the next ten years [17]. The National Quantum Strategy puts in place additional commitments worth £150m over the spending review period to 2024/25 (National Quantum Strategy P. 13).

 

To accelerate the commercialisation of quantum technologies, a whole system approach will be required as part of a cross government effort, in line with the Science and Technology Framework.

 

The National Quantum Strategy sets out a bold and ambitious approach to supporting quantum technologies in the UK across the broad spectrum of quantum computing, sensing, timing, imaging and communications. Our strategy is to develop the whole science, technology and innovation ecosystem, developing UK strengths across different hardware platforms, software and components, and reinforcing our capabilities throughout supply chains. We will also invest in and strengthen the key ecosystem enablers, such as skills, infrastructure, regulation, procurement and standards. We will monitor the development of these technologies, both in the UK and in other countries, and the development of the market, to ensure we can flex our approach to deliver the best possible outcome for the UK, taking a more targeted approach where appropriate as the sector evolves. We will also work with the sector to develop a set of galvanising long-term missions to cohere activities around.

 

This programme will:

• Ensure the UK is home to world-leading quantum science and engineering, growing UK knowledge and skills

• Support business, making the UK the go-to place for quantum businesses and an integral part of the global supply chain, as well as a preferred location for investors and global talent

• Drive the adoption and use of quantum technologies in the UK to deliver benefits for the economy and society, as well as our national security

• Create a national and international regulatory framework that supports innovation and the ethical use of quantum technologies, and protects UK capabilities and national security

 

Q1: What has been the recent progress made on quantum technologies and what is their potential impact on society or the economy?

UK start-ups are already bringing quantum technologies to commercial market with applications in medical imaging, communications and sensing. Quantum technologies will have a critical impact across society, including for economic growth, health, sustainability, and national security. The countries that are amongst the first to develop and use them widely across the economy will have vast advantages in all these areas. Over the longer-term, quantum computers, clocks, sensors, imaging, and communications will achieve readiness in the next ten years and beyond [18].

Recent progress

The UK has developed new quantum devices that are now being trialled globally. Notable examples include:

         wearable brain scanners that will improve our understanding of neurological disorders (developed by the University of Nottingham) [19],

         miniaturised atomic clocks that will end dependence on satellites for timing [20],

         sensors which can accurately detect and quantify greenhouse gas emissions (developed by QLM Technology from the University of Bristol) [21],

         the first commercial trial of a quantum secured communications network linking Canary Wharf to the West End of London (backed by BT, Toshiba and EY) [22],

         a gravity gradient sensor that allows what is invisible underground to be seen and mapped, which has successfully passed a landmark open-air trial (led by the University of Birmingham, the Defence Science and Technology Laboratory, RSK Group and Teledyne e2v) [23].

Oxford Quantum Circuits and the National Quantum Computing Centre (NQCC) have signed a memorandum of understanding to make quantum computers available to UK organisations, to support their quantum readiness and build a user community for UK quantum computing [24].

Quantum technologies have many potential applications being developed beyond those mentioned above [25]. They will open opportunities in areas including net zero, national security, health, digital innovation and other critical growth sectors.

Anticipated impact

A Report from Boston Consulting Group estimates that over the next three to five years, quantum computing could deliver $5-10 billion of benefits across the world; and this rises to $450 - $850 billion in the next fifteen to thirty years [26]. Quantum sensing alone could generate $5 billion globally in revenue by 2030, with quantum communications potentially accounting for an estimated $8 billion in revenue [27].

 

Computing applications demonstrating quantum advantage will drive the development of economic value through adoption and exploitation. A recent survey of UK-based business executives suggests that 97% expect quantum computing to disrupt their sectors to a high or moderate extent by 2027. However, while 72% intend to start strategic planning to prepare for quantum computing's commercialisation by 2024, no more than 33% have already begun planning [28]. Without demonstration of quantum advantage and the necessary leadership and pace setting by NQCC and others across the NQTP, the industrial end-user community will not engage as needed in this new technology age.

Quantum technologies could advance UK’s net zero ambitions through direct technology impact and indirectly by improving other net zero technologies. By mimicking nature, a quantum computer could simulate new materials, accelerate improvements in solar panels and batteries, and help improve the efficiency of renewable energy sources. By modelling and optimising logistics and traffic network flows, quantum computing could reduce carbon emissions as well as bring about significant efficiency savings. Meanwhile, by monitoring the emission of greenhouse gases, quantum sensors could help the UK to meet emissions targets and monitor compliance. The development of quantum gravity sensors through to commercial use has the potential to be hugely impactful. Helping to build an accurate understanding of what lies beneath the ground, improving the efficiency of infrastructure projects.

These technologies will also affect all aspects of defence and security, from cybersecurity to space. For defence purposes, solving complex optimisation problems and sending information in a quantum state could improve sensor networks and enable autonomy through enhanced sensors. Quantum-enhanced machine learning could be used for pattern matching, image and voice recognition and classification, and data fusion. On the battlefield, the use of quantum computing and sensing could enable us to find targets of interest, enhance situational awareness and solve complex calculations for modelling. There will be consequences in defence systems, notably in sensing and electronic warfare. Advances in sensing could enable detection of subterranean infrastructure and facilities. With regards to space, communications and sensing will be crucial to developing capabilities.

Threats and opportunities

It should be noted that quantum technologies provide threats and opportunities to our national infrastructure. The most notable threats are those relating to improved abilities to decrypt previously secure data through quantum computing. Being quantum-safe and quantum-ready will require us to develop ways of mitigating potential threats. Post-quantum cryptography means systems able to withstand attack from quantum methods. These will improve the security of our critical infrastructure networks, ensuring that our data and communications are safe into the future.

Under the National Quantum Strategy, the government has and will continue to develop wider quantum readiness programmes, such as the SparQ applications programme discovery developed by the National Quantum Computing Centre. SparQ will offer support for users of quantum computing, to help them understand the opportunities and challenges associated with this technology [29]. This programme is ensuring resources are in place to provide access to state-of-the-art quantum compute resources delivered via the cloud, applications expertise, sharing of best practice and technical support to help shape and drive industry adoption.

Quantum communications will enable quantum networking critical for many quantum computers. They will also enable new forms of communication as well as new forms of security. Short and long-range quantum communication systems may provide high bandwidth, secure point-to-point communications which cannot be intercepted and can be covert on deployable platforms.

Accurate and precise quantum sensors will help future drivers to ‘trust’ their autonomous vehicles, including ships, trains and planes.

Quantum clocks mean that the UK will have increased resilience should global navigation satellite systems fail or be jammed.

In health, quantum computing has the potential to make hospital systems more efficient by solving complex logistical problems, thereby improving delivery and reducing costs. Quantum computing could also analyse vast and unstructured data sets to speed up new drug development timelines and reduce costs. Better, cheaper or easier imaging will enable improved diagnostics and outcomes for patients, for example, for use during cancer surgery to remove damaged tissue, or to monitor epilepsy in children, or brain damage and concussion.

Quantum technologies have high potential use cases in the finance sector. For example, quantum computing could enhance scenario planning, logistics and risk management within financial systems by accelerating optimisation routines. They can also be used to enhance Monte Carlo simulations for more effective risk management, optimise pricing and securities settlements, and enable quantum machine learning to improve fraud detection.

As enabling technologies, quantum products and services will often unlock innovation through integration of a wider suite of technological solutions. For example, quantum computers may accelerate machine learning and provide reinforcement learning using unbiased data sets, whilst quantum technologies could act as an enabler for the further development of smart cities through a mixture of sensing, networking and compute capabilities.

Given the breadth of anticipated capabilities and advances in performance, they will also have applications across many sectors. This represents both a great opportunity and a challenge for commercialisation. Considerable work is required to understand the drivers and technological challenges within critical sectors of the economy. This includes future telecoms networks, the space, defence, health, AI, high performance computing, photonics and semiconductor industries. We must ensure that efforts to roadmap and support technological advances within other sectors are mindful of what quantum could offer and develop an integrated whole system approach, enabling suitable environments within which to test and demonstrate applications. Substantial work will also be required to integrate new quantum technologies into existing systems of classical technologies and to assure their capabilities. It should be noted that many of these technologies are still early stage and there are still significant engineering challenges to demonstrate their effectiveness in real world settings.

Q2: What are the strengths and weaknesses of the UK National Quantum Technologies Programme and how has this shaped the UK quantum industry?

The National Quantum Technologies Programme (NQTP) was set up in 2014 to turn quantum technologies into commercial value for national advantage, combining the UKs world leading quantum research with UK sector strengths and user requirements to drive innovation and commercialisation. Government investments to date through the NQTP have created a unique and diverse pool of talent, capabilities and know-how within the UK quantum sector. The NQTP model has since been emulated by countries globally, including Canada and the Netherlands, and the UK’s first mover advantage from the NQTP has shaped both the UK’s and the global quantum sector [30], [31].

A key strength of the NQTP is the alliance between academia, industry and government and the provision of different mechanisms to enable the right interactions between these communities be that the Hubs, Innovation or skills programmes. The success of the NQTP can also be attributed to its Programme-level coordination. The strategic coordination of the Programme across its many partners (EPSRC, STFC, IUK, MoD, Dstl, DSIT, NPL, GCHQ, NCSC ) balances the need for direction and control with the benefits of allowing local decision making and autonomy by individual partners, experts and potential users of the emerging technology. The programme also benefits from the external expert challenge provided by the Strategic Advisory Board.

The alliance between academia, industry and government features throughout the NQTP and is demonstrated in its advisory and governance structures, discussions and meetings on setting priorities and into the partnerships and project teams on its research, training and innovation activities. Through the Programme of Programmes approach, research, innovation, infrastructure and training investments and activities mutually support one another. 

A long-term commitment and clarity of direction are other key strengths of the programme. The NQTP is in year nine of an initial ten-year programme, with £1 billion committed funding between government and industry. The programme has generated over 470 PhD candidates and businesses supported by the UK Commercialising Quantum Challenge have raised over £425 million in private sector financing since the programme began [32]. As we look to a new 10-year programme, the £2.5 billion committed to the National Quantum Strategy provides the much-needed certainty and commitment to a new long-term programme for academic and industrial communities [33]. For the UK quantum industry to achieve its potential, it will be important for future government support for the commitments and objectives set out in the ten-year National Quantum Strategy.

The Quantum Technology Research Hubs

The programme seeks to accelerate the development of quantum technologies across four main areas, centred around ‘Quantum Technology Research Hubs’ at leading UK universities. These hubs act as focal points for different types of technologies, but they don’t work in isolation. They work closely with one another, creating a network of nationally leading centres of excellence, and work with their local communities’ industrial communities to offer expertise and collaborative opportunities in the following areas:

The Quantum Technology Research Hubs have claimed many firsts in quantum technologies, including first industrial demonstrations of a quantum gravimeter (capable of sensing objects underground), the first chip-to-chip Quantum Key Distribution (QKD) encrypted transmission, and achieving a world record performance in ion trap quantum computing.

Over 120 UK businesses have partnered with the UK national research Hubs in quantum technologies [34]. The UK is also acknowledged as world-leading in developing quantum computing software for error correction and applications. The UK Quantum Technology Hub in Sensors and Timing has been undertaking work to create world leading capability in medical imaging including wearable technologies for brain imaging, which is now being used in clinical trials to guide epilepsy surgery.

The Industrial Strategy Challenge Fund Quantum Challenge

The extent of collaboration within the quantum community in the UK is a particular and rare strength, enabled by the NQTP model. The ISCF quantum challenge enables companies to explore opportunities for commercialisation, taking the great ideas generated in the hubs and bringing technical capabilities within companies together to drive technology development. The government has funded 139 projects involving 141 quantum organisations through the UK Research and Innovation Quantum Challenge alone [35]. The interplay between the different elements of the community in the UK – from hardware, to software, to components and enablers – is particularly strong within these projects.

There are a number of applications being explored through the challenge. Taking clean growth as an example: a project led by AMTE Power to use quantum sensing to diagnose flows in the ageing process of lithium batteries which will make their manufacturer quicker, cheaper and greener [36]; the Gravity Delve project led by Nemein Ltd to explore the use of quantum gravity sensors to optimise renewable energy harvesting and carbon storage for the oil and gas industry [37]; and the SPLICE project led by start-up QLM in collaboration with partners including BP and the National Grid to develop quantum enabled gas sensors for detecting industrial gas leaks [38].

The National Quantum Computing Centre (NQCC)

The National Quantum Computing Centre (NQCC) is a new research institution funded through UKRI, which is dedicated to accelerating the development of quantum computing by addressing the challenges of scalability and readiness. Working with partners across industry, government and the research community, the NQCC will create the necessary R&D capabilities through coordination and delivery of a technical programme, alongside the commissioning and operation of new facilities.

 

The programme will deliver assured quantum computing capability, enabling the UK to remain internationally competitive. The centre will be headquartered in a purpose-built facility at the STFC’s Rutherford Appleton Laboratory campus in Oxfordshire, which is due for completion in 2023.

When combined with the UK’s quantum talent and scientific expertise developed within the hubs, as well as the Quantum for Fundamental Physics programme, and tailored doctoral programmes and fellowships, this makes the UK a great place to locate a quantum business. Top talent trained within the quantum programme are now the CEOs of leading quantum companies, commercialising IP that grew out of the work at the hubs, and they are now supported by ISCF funding which is helping them to raise further investment to grow their businesses and the wider ecosystem. As a result of the programme’s activities, the UK’s quantum sector is rapidly growing, ranking second in the world to the US for the number of quantum companies and second in attracting private investment, leading the competition in Europe [39].

Another key strength of the programme is that it draws on regional excellence across the UK. We have made significant investments in government-owned infrastructure to support industry and the development of new products based on quantum technologies. This includes expanding the facilities and capabilities at the National Physical Laboratory (NPL) in Teddington and establishing the National Quantum Computing Centre (NQCC) at the Harwell Campus in Oxfordshire. This is in addition to the network of research and innovation infrastructure built up in the existing Quantum Technology Research Hubs, and investment in wider capabilities such as the National Dark Fibre Facility and computing capabilities in Edinburgh, the Catapults network, and the Hartree Centre in the North West – home to the National Centre for Digital Innovation in collaboration with IBM. Furthermore, the testing and assurance capabilities delivered through the NPL are amongst the best in the world and a key enabler for the UK sector.

Challenges

Although the quantum programme and the wider UK ecosystem has many strengths, the UK is working within an increasingly competitive environment, and it will need to continue to punch above its weight and build on existing know how if it is to succeed. The UK has been able to gain first mover advantage through a coordinated £1bn programme, but this level or effort will not be sufficient to keep pace with global developments over the next ten years [40].

Global investment and competition are increasing at a rapid pace and scale. The UK is working within a changing geopolitical context with other governments ramping up investment into their national research programmes - with funding of at least $15 billion in China, $7.2 billion in the European Union [41], the US now spending around $820 million a year [42], and Japan recently doubling its annual expenditure to around $590 million in 2022 [43]. Large corporations headquartered overseas have also established significant quantum programmes. This increase in activity means that UK companies face tougher competition for talent and face potential risks associated with technology transfer and trade restrictions.

In the longer-term the UK faces a challenge in terms of bringing together different organisations to undertake systems integration at scale for compute given the lack of a UK-owned IT company with experience of integration. The National Quantum Computing Centre will address some of these integration challenges through its programme. The UK also needs to consider the future requirements for fabrication facilities which are likely to grow in the coming years. The next ten years will build on the successes of the last ten years, continuing to fund fundamental research, hubs, collaborative R&D with industry and skills to build the foundations, and generate new ideas. But it will also evolve to increase the focus on more targeted interventions and demonstration activities which will be crucial to drive the later stages of commercialisation (see answer to Q4).

 

Q3: What are the prospects of the UK quantum industry and how do these compare to other nations with strengths in quantum?

As identified by the chair of the House of Commons Science & Technology Select Committee, the UK punches above its weight on quantum technologies. Our early mover advantage from the National Quantum Technologies Programme (NQTP) means that the prospects for the UK quantum industry are excellent. The UK is in the top five in a range of metrics for global academic excellence [44], is the home to the largest number of quantum start-ups in Europe [45], attracts more capital investment than any other country in Europe [46] and has leading businesses across the supply chain who are exporting to global markets. If suitable investment continues to be made into the sector we will build on this excellent position. However, it should be noted that the global quantum sector is becoming increasingly competitive. In the last year several comparator countries have released quantum strategies with significant funding commitments. This growth and competition is healthy, but there is a risk that the UK could lose out on top quantum talent and become less desirable as a location to start a quantum company if other countries offer more attractive support.

Current status and future prospects

We currently have an estimated ~9% global market share in quantum technologies in 2021/22. The commercial success of the UK’s quantum sector is demonstrated by the fact that between 2012 and 2022 the UK has attracted ~12% of global private equity investment into quantum technology companies [47].

New quantum devices that have been developed in the UK across computing, communications, sensing, and timing are now being trialled globally with real societal impact.

The UK is already an ideal location to develop, test, and commercialise new quantum technologies due to our highly connected system of expertise and infrastructure. This is why leading global companies such as IBM, Fujitsu, Infleqtion and Rigetti have chosen to base activities here – as well as PsiQuantum, a leading optical quantum computing company, which has recently announced the establishment of a quantum computing research centre in Daresbury, supported by £9m in government funding [48].

The UK also has leading businesses across the quantum technology supply chain (including lasers, cryogenic systems, high vacuum equipment, electronic control systems and photon detectors) many of whom are winning contracts in the UK and exporting to the quantum community in global markets.

The UK has a particular strength in our:

To fully exploit these strengths will need to manage vulnerabilities, including:

The quantum sector is still nascent and there are uncertainties over how it will develop. Therefore, it is important for the UK to maintain flexibility in its approach and to play a key role internationally, working with international partners to shape the development of the sector for the benefit of the UK.

International comparisons

Among the top 10 nations producing quantum scholarly outputs, the UK ranks 3rd for the quality and impact of its quantum science. (Based on field-weighted citation impact 2017-21 [49].

US public funding for quantum technologies has now reached around $820 million per annum, with a further $844 million for 2023 alone [50]. Combined with high levels of private investment and the presence of Big Tech firms, this means the US has significant advantages in developing scalable quantum computing power. China is also forging ahead having invested significant sums in their quantum technology programme.

Other nations of comparable economic size have launched national strategies and initiatives supported by large spending commitments. Germany have announced 2 billion between 2021-26 [51], France €1.8 billion between 2020-24 [52], and Japan more than doubling their annual funding to around $590 million in 2022 [53]. 

Whilst it is helpful to understand how the UK compares to other countries, developing the quantum ecosystem will be an international effort. The UK takes an open and collaborative approach to quantum research, with Engineering and Physical Sciences Research Council international calls resulting in UK universities partnering with organisations in 28 countries [54]. The Quantum Technologies for Fundamental Physics programme has generated 26 unique international links from its seven large consortia projects across 9 countries [55].

The UK has a strong talent pool, tech developer landscape, supply chain and a promising end user market. However, global demand for quantum skills outstrips supply, despite sustained investment in the UK. Competition for skills is increasing, with recent analysis showing that globally quantum job adverts outstrip qualified talent by as much as three to one [56], and the US offers double the salaries for top quantum professionals than the UK [57]. As detailed in the National Quantum Strategy, the government is updating the visa routes that talented individuals in the field of quantum can use to come to the UK and continue their careers.

The National Quantum Strategy will build on this scientific excellence and thriving sector to drive the use of quantum technologies in the UK to deliver benefits for society.

Q4: What interventions are required from Government, industry and academia in order to drive the commercialisation of quantum technologies?

 

Interventions for government, industry and academia to drive commercialisation are set out in the strategy document (National Quantum Strategy, Pg. 11-12) under the following four goals:

Goal 1: Ensure the UK is home to world-leading quantum science and engineering, growing UK knowledge and skills

The UK will increase our investment in quantum technologies from this year, with new funding available for investment in quantum computing and Positioning, Navigation and Timing missions, development of research Hubs, quantum fellowships and doctoral training, government procurement of quantum technologies, quantum networking, increased National Quantum Computing Centre activities and international collaboration via the International Science Partnerships Fund.

To ensure that appropriate quantum talent is available to grow the UK quantum sector, the National Quantum Strategy will more than double the number of centres for doctoral training focused on quantum technologies, contributing to train more than 1,000 PhD students in quantum or a directly supporting field over the next 10 years. We will also establish a quantum skills taskforce, bringing together industry, academia and professional societies with the relevant government agencies to ensure that the quantum skills system is guided by the needs of our most promising young companies. We will develop a quantum apprenticeships programme to improve the availability of skilled technicians within the UK quantum sector. This programme will build upon the success of existing initiatives, such as the National Physical Laboratory Apprenticeship Scheme, which has hosted over 100 apprentices since 2013. It will be developed in collaboration with industry partners and will align with wider government objectives to strengthen technical training in the UK.

 

Goal 2: Support business, making the UK the go-to place for quantum businesses and an integral part of the global supply chain, as well as a preferred location for investors and global talent

 

 

The Government will run mission focussed programmes and accelerator programmes in collaboration with industry to promote the commercialisation of quantum technologies in the UK. The mission-focussed programmes will be specific outcome-driven innovation programmes to drive development towards a set societal and economic benefit. The accelerator programmes will focus on specific technology areas to accelerate the path to commercial and technological maturity, building on key strengths in the current programme and UK landscape and promoting sovereign capability and market leadership in areas with significant market opportunity. These programmes will focus on bridging the gap between early growth and market readiness by enabling demonstration in real-world settings with users and integrators. The government will also invest in the infrastructure required to meet the needs of the evolving field and sector, including continued funding for core operational activities of national facilities such as the National Quantum Computing Centre and National Physical Laboratory. We will commission an independent review of the quantum sector infrastructure requirements to ensure that the sector has the required infrastructure to achieve our goals.

Goal 3: Drive the adoption and use of quantum technologies in the UK to deliver benefits for the economy and society, as well as our national security

 

A key objective of the National Quantum Strategy is to increase the adoption of quantum technologies in the UK. The UK has already demonstrated commitment to this objective through the foundation of the National Quantum Computing Centre, which has the ability to both raise awareness of the application of quantum computing to key sectors of the economy through its readiness programme, and act as a first customer on government’s behalf by procuring prototype platforms and gaining access to advanced compute capability. This will accelerate the growth of the sector and enable sectors and government users to explore use cases. In order to boost quantum technology usage, the government will also establish a quantum catalyst fund to accelerate government procurement and enable government to act as an intelligent, early customer of quantum technologies, starting with a catalyst pilot of £15 million (National Quantum Strategy, p. 14). Furthermore, the National Quantum Strategy will expand the use of government procurement for quantum technologies by setting up a government user group to identify where quantum technologies are likely to offer an advantage to the delivery of public services and other public good applications. The government will continue to work across departments to agree sector or tech specific action plans to better articulate the value proposition and resulting actions for enabling technological convergence.

 

Goal 4: Create a national and international regulatory framework that supports innovation and the ethical use of quantum technologies, and protects UK capabilities and national security

 

To provide the necessary regulatory environment for companies to feel confident commercialising quantum technologies in the UK, the government will work through relevant global bodies to ensure that global quantum technical standards promote our prosperity and security interests, including accelerating commercialisation of quantum technologies and supporting the sector here in the UK. To ensure that future UK regulation of quantum technologies supports innovation, business growth and the ethical use of quantum technologies across the UK economy, we will lead the way in trialling quantum technologies in the UK, establishing regulatory testbeds and sandboxes. The government will support the work of the Regulatory Horizons Council who are undertaking an independent regulatory review of Quantum Technology applications. This will lead to the development of a work programme to guide the evolution of proportionate and pro-innovation regulation for the sector. To lead globally in this space, we will expand our partnerships with global allies on regulations and standards and align our development principles where possible.

Q5: Are the vision and actions set out in the Government’s new quantum strategy fit for purpose?

As set out above, the National Quantum Strategy has set out the vision for the UK to be a leading quantum-enabled economy by 2033, with a world leading quantum sector. Furthermore, quantum technologies will be an integral part of the UK’s future digital infrastructure and advanced manufacturing base, driving growth and helping to build a thriving and resilient economy and society.

To achieve this vision, the National Quantum Strategy sets out four key goals for the next 10 years:

  1. To ensure the UK is home to world-leading quantum science and engineering, growing UK knowledge and skills
  2. To support business, making the UK the go-to place for quantum businesses and an integral part of the global supply chain, as well as a preferred location for investors and global talent
  3. To drive the adoption and use of quantum technologies in the UK to deliver benefits for the economy and society, as well as our national security
  4. To create a national and international regulatory framework that supports innovation and the ethical use of quantum technologies, and protects UK capabilities and national security

The ambitions of the quantum strategy are at the right scale for the UK to be a leading quantum nation and at the right time to enable the UK to compete in an increasingly competitive sector. The strategic goals are aligned with UK strengths in quantum technologies and the Science and Technology Framework and will help the UK to achieve its goal of becoming a science and engineering superpower.

The NQTP has given the UK quantum sector great foundations with close links between industry, academia and government. In this response, the benefits of the NQTP have already been demonstrated and we anticipate further growth and development of commercialising quantum technologies.

The international environment for quantum technologies is becoming increasingly competitive and the UK risks losing its quantum advantage. Comparator countries are releasing their own quantum strategies and increasing levels of government funding for quantum technologies. Now is therefore the right time for the UK to send a strong signal of intent by reaffirming our commitment to being a leading quantum nation and to maintain our advantage. We have done this through publishing our National Quantum Strategy, building on the success of the first two phases of NQTP.

 

28 April 2023

 

 


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