EU warns of falling behind in quantum technology race urging need for greater investment

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Jul 2, 2025
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As the EU releases a new quantum technology strategy, officials and industry leaders warn that Europe risks losing ground to the US and China unless it increases investment and avoids premature regulation.

As Europe prepares to compete in the next global technology race, familiar obstacles threaten its ability to keep pace with the United States and China. While the EU leads the world in scientific publications on quantum technology, a new strategy published Wednesday warns that promising European innovations risk being commercialized abroad, as the bloc continues to lag in translating research into market-ready solutions.

Europe currently attracts just 5% of global private quantum funding, compared to over 50% in the US and 40% in China, according to EU data. Quantum computers, expected to revolutionize industries from communications to drug development, are drawing billions in investment from governments and technology companies, particularly in the US.

“This sector is something where we are several years ahead of other countries,” said Juha Vartiainen, co-founder of Finnish quantum computing company IQM. However, Europe has fallen to third place globally in patents filed, behind the US and China.

For many, this situation evokes déjà vu. Europe has historically excelled in early-stage research, as seen in artificial intelligence, but has fallen behind the US and China in building companies that deliver mass-market applications.

A major debate is underway over whether Europe should give its quantum industry free rein. Quantum computers are considered sensitive technology with the potential to break digital encryption—a national security concern that has led several European governments to impose export restrictions.

Adding urgency to the timeline, IBM recently announced it expects to deliver the first workable quantum computer by 2029. Europe, however, has struggled for decades to overcome fragmented financial markets and pool investment at the scale seen in the US and China. Efforts to create a bloc-wide capital markets union have produced little progress.

“Raising a scale-up in Europe is super difficult, because we lack the European instruments, the European venture capital ... large enough to support that,” said Enrique Lizaso, CEO of Spanish software firm Multiverse Computing, which last month raised €189 million from both US and European investors. Lizaso argued that Europe must be ready to invest €100 million per company to compete with the US.

Vartiainen echoed the need for significantly larger funding levels. EU tech commissioner Henna Virkkunen said the EU and its member states have jointly funded quantum technology with €11 billion. “Now it’s important, because we are quite fragmented, that we are putting different dots together,” Virkkunen said in an interview.

While both Brussels and EU capitals have rolled out public funding plans, industry leaders fear these efforts lack sufficient focus. Europe’s “technology-neutral” approach spreads funding across several quantum fields, potentially diluting impact. Vartiainen called for the EU to follow the US model of unlocking larger investments for specific “challenges.”

The US government’s DARPA program has selected 18 companies for a bid to develop an error-free quantum computer by 2033, with up to $300 million potentially available for those meeting all milestones.

The EU’s draft strategy plans to launch “two grand challenges” between 2025 and 2027: one for quantum computing and another for quantum navigation systems in critical environments. The Commission also pledged to “support innovation-oriented procurement schemes,” but has not provided detailed plans.

Industry voices warn against premature regulation and export restrictions. Cecilia Bonefeld-Dahl, director general of DigitalEurope, said, “We cannot afford to regulate what is not yet mature. Otherwise, Europe risks losing the quantum race.”

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