Experts recommend the U.S. establish clear investment guidelines for quantum tech, linking it to national security and economic strategy.
Columnists Joshua Zoffer and Chris Miller from The Economist advocate for the U.S. to establish clear investment rules for quantum technologies, emphasizing the need for targeted industrial policy in this emerging sector. They highlight that while government support has been beneficial in areas such as drones and batteries, the unique landscape of quantum computing—characterized by a lack of commercial products and established supply chains—calls for early government intervention to avoid creating entrenched dependencies.
The authors stress the national security implications of scalable quantum computers, which could jeopardize public key cryptography and enhance capabilities in sensors, navigation, and communications. They argue that government investment in quantum technologies could be justified, but caution against making it a standard practice across all tech sectors.
Recent Government Initiatives
On May 21, the U.S. Department of Commerce announced a significant investment totaling $2.013 billion under the CHIPS and Science Act, which includes funding for two quantum factories and seven companies engaged in quantum computing. Notable allocations include $1 billion to IBM for a subsidiary focused on quantum-class superconducting wafers and $375 million to GlobalFoundries for a secure quantum factory.
The funding recipients also include:
- Atom Computing ($100 million);
- D-Wave ($100 million);
- Infleqtion ($100 million);
- PsiQuantum ($100 million);
- Quantinuum ($100 million);
- Rigetti (up to $100 million);
- Diraq (up to $38 million).
Each company must allow the government a minority non-controlling stake, a condition that led Google to withdraw from the program due to concerns it might impede the development of effective quantum solutions.
Guidelines for Government Investment
Zoffer and Miller propose three key principles for government investments in technology:
- Intervene only when national security or significant economic vulnerabilities are at stake that the market cannot address independently.
- Avoid investing in sectors where commercial products already exist; in quantum computing, such products are not yet available.
- Maintain a separation between government and business to mitigate political risks, suggesting the use of warrants to allow the government to benefit from company growth without direct ownership.
Furthermore, the authors reference a previous executive order by former President Trump aimed at transitioning federal systems to post-quantum cryptography, highlighting the dual goals of protecting against advanced cryptographic threats while fostering innovation.
Experts have noted that while this direction is promising, the decentralized nature of cryptocurrencies like Bitcoin complicates the scenario, as they cannot be easily updated by government action. Additionally, the U.S. Department of Defense's Defense Innovation Unit recently launched the Farseer program, which aims to develop quantum sensors and portable atomic clocks, potentially receiving up to $200 million over the coming year.
