Andrea Dugo and Dyuti Pandya / Apr 2025
Image: Shutterstock
Are we on the cusp of another major technology revolution, this time driven by quantum technology? Breakthroughs are happening almost weekly: just recently, researchers achieved another significant advance in long-distance quantum communication, successfully demonstrating the secure transmission of data over a 410 km fibre network. At the same time, a new institute was launched to explore how quantum could be used in computing, networking and sensing for defence and intelligence operations. As we get closer to the commercialisation of quantum technology, the area will feature much more investment, but also geopolitical conflict. Sure, quantum is also seeing its share of hype but it’s becoming clear that quantum is not just another tool, it is set to become a foundational platform for emerging technologies.
The challenge with quantum lies less in the science and more in how the world responds to it. No single country has established a definitive lead thus far, and it remains too early to identify a clear frontrunner. We have built a novel database on quantum technology and, of 33 countries identified with quantum initiatives, 20 have formal policy frameworks linking government, research, and industry. Public investment in quantum is nearly three times greater than private funding, a stark contrast to broader R&D trends where companies usually dominate.
There is a clear global pattern in the quantum technology landscape. According to our estimates, China leads in public investment, followed by the EU as a whole, with Germany accounting for the bulk of the EU’s public funding. France and the Netherlands also emerge as major public sector contributors within the bloc. Overall, the EU positions itself even ahead of the US in terms of mobilising public support for quantum technologies.
The quantum market remains modest in size, with still limited private sector returns. However, some countries enjoy more mature quantum markets than others. The US, while hosting just 24% of the 258 quantum companies we analysed, has attracted 44% of total funding. China, with 10% of companies, has secured 17%. The EU, despite boasting the largest number of companies, about 26%, has received only 12% of funding. In fact, the equity market for quantum technology in just the UK and Canada surpasses that of the entire EU bloc. In the US, it is roughly four times the size of the EU’s. A significant barrier to scaling EU quantum startups is the limited access to private capital, which has been a recurrent problem for Europe’s startup sector across all innovation sectors.
While the overall EU performance in the private sector is lower compared to the others, there are some exceptions. Denmark, Finland and also France stand out in the EU landscape. Denmark benefits from significant corporate investment, primarily from pharmaceutical company Novo Nordisk, while Finland stands out as the EU’s most vibrant venture market for quantum startups relative to its size. Another important EU player is France, with venture funding for its startups as a share of GDP slightly lower than the US but higher than Switzerland and China. The remaining EU Member States exhibit VC and equity funding levels in their startups either around the bloc’s average or much lower. This is true even for otherwise large public investment players like Germany and the Netherlands.
Beyond investment levels, a deeper issue lies in what’s often called the European Paradox: despite being home to some of the world’s top universities and the largest number of quantum companies globally, Europe still struggles to convert scientific breakthroughs into commercialised innovation. This is further evident in the global quantum computing patent landscape. US companies dominate, with eight firms among the top 20 applicants, Japan follows with four firms, while China ranks third with three firms. In the EU as a whole, just two actors, Germany’s Covestro and France’s government research agency CEA appear among the top 20.
The future of quantum technologies in the EU hinges not only on scientific excellence, but on the ability to bridge the gap between discovery and scalable application. Turning foundational research into real-world impact requires an ecosystem that fosters innovation, and incentivises commercialisation, especially through stronger patenting frameworks and facilitated private funding mechanisms. For the EU to gain a competitive edge in quantum, it must adopt a comprehensive strategy that balances competition with collaboration, and aligns public and private sector efforts. The critical challenge now is to make the leap across the so-called "valley of death", the gap between breakthrough research and market-ready solutions.
