The Emerging Quantum Economy

May 14

What R&D Funding Patterns tell us about Future of Computing

In the realm of technological advancements, quantum computing emerges as a game-changing innovation with the potential to revolutionize industries by solving problems that are currently intractable for traditional computers. This emerging field not only promises to overhaul areas like cryptography and complex problem solving but also to redistribute the centers of technological influence and economic power globally.

Defining Quantum Computing

Quantum computing represents a fundamental departure from the traditional Von Neumann architecture that has dominated computing since the mid-20th century. Unlike classical computers, which use bits as the smallest unit of data (each bit being a 1 or a 0), quantum computers use quantum bits, or qubits, which can represent and store information in both 1 and 0 simultaneously thanks to the principle of superposition. Furthermore, qubits can be entangled with each other, a property that allows a set of qubits to express a multitude of states simultaneously.

These capabilities could dramatically accelerate solutions for nondeterministically computable problems, which are currently unsolvable in practical terms due to their computational complexity, and fundamentally disrupt the current cryptographic methods that secure everything from online transactions to state secrets.

Race for Economic Leadership in Quantum Technologies

Recognizing the transformative potential of quantum computing, nations and regions are investing heavily to establish leadership in this nascent field. Recent data reveals a stark acceleration in funding allocations: In the U.S., 55% of all federal funding for quantum research over the last fifteen years was obligated in just the past two years. Globally, China leads with a substantial $15.5 billion dedicated to quantum R&D in 2022, followed by Germany with $3.1 billion, and both the U.S. and the UK at $1.3 billion each.

Regional Dynamics within the United States

Chicago: With an estimated $4.03 per resident in federal funding and recent recognition as a Quantum cluster by the U.S. Economic Development Administration, Chicago is positioned as a central hub for quantum research in the U.S. The Chicago Quantum Exchange is a key driver in this region.
Montana: Montana is leveraging its historic expertise in photonics to become a significant player in the hardware essential for quantum computing. The state's robust photonics industry plays a crucial role in the hardware supply chain, contributing specialized components that are vital for the development and operation of quantum technologies. This specialization not only positions Montana as a leader in quantum hardware but also as a critical node in the global supply chain, influencing quantum computing capabilities worldwide.
Seattle: Home to tech giants like Microsoft and Amazon, this region is carving out a niche in the development of quantum applications, propelled by corporate innovation. Northwest Quantum Nexus and the Washington Technology Industry Association's Advanced Technology Cluster are leading the way in coordinating this effort.
Washington D.C.: The focus here is on the cybersecurity implications of quantum technology, reflecting the city’s role in national security and policy-making.

Internationally, cities like London and Beijing are also establishing themselves as significant centers for quantum research and development.

Impact on Current Tech Hubs

The rise of quantum computing is poised to shift the geographic centers of technological innovation and economic power. While traditional tech hubs such as San Francisco, Seattle, Boston, and Austin have long been at the forefront, new players are emerging. Chicago, Denver, and Bozeman are on the brink of becoming the epicenters of this new quantum economy.

Private investments are still influenced by traditional venture capital centers, but quantum-focused funds like Qubits Ventures are signaling a shift by betting on regions with specialized capabilities.

Quantum Computing: A New Economic Paradigm

Quantum computing is not just a technological evolution; it represents a foundational shift in how future economies will be structured. The technology's ability to process vast amounts of data at unprecedented speeds makes it a pivotal force in the future economic landscape, potentially giving rise to new industries and transforming existing ones.

Organizations and governments need to be proactive in engaging with this technology to understand the landscape and identify opportunities for growth and innovation. Companies like Moonbeam, which provide insights into the quantum computing ecosystem, are crucial for navigating this complex field.

As we stand on the brink of this quantum era, the implications for economic development, national security, and technological supremacy are profound. Stakeholders across all sectors are called to understand and integrate quantum technologies into their strategic planning to remain competitive in the rapidly evolving global market. Engaging with and investing in quantum computing resources and research is no longer an option but a necessity for those looking to lead in the next wave of technological and economic development.

Moonbeam Exchange worked with the Washington Technology Industry Association and Northwest Quantum Nexus to produce a Quantum Information Sciences in Washington State report. You can find more on this report here.

Nirav Desai