Why the UK is World Leading for Quantum Companies

As the global technology industry races to harness the potential of quantum technologies, major powers are investing heavily in research and development.

The quantum revolution promises to transform sectors from finance to healthcare, with applications in drug discovery, cryptography and financial modelling.

In this competitive environment, the global race to develop quantum technologies has intensified in recent years, with major powers investing heavily in research and development.

For instance, quantum computing, sensing and cryptography promise to revolutionise fields from drug discovery to financial modelling.

As the potential of quantum technologies becomes clearer, countries are vying to establish themselves as leaders in this emerging industry.

Yet the UK has emerged as a frontrunner, thanks in large part to a coordinated national strategy launched a decade ago.

UK celebrates 10 years of quantum programme success

The UK National Quantum Technologies Programme (NQTP) is marking its 10th anniversary at the National Quantum Technologies Showcase in London on 8th November.

According to programme officials, the £1bn (US$1.2bn) of public funding invested over the past decade has yielded significant returns, establishing the UK as a global quantum leader.

The UK is now ranked as one of the top two countries worldwide for quantum company creation and investment attraction, programme representatives state.

While quantum computing remains the primary focus, sensing, imaging and networking technologies have also seen major advances.

Companies funded through the programme's Quantum Challenge have now gone on to raise nearly $870m in private investment in UK Research and Innovation (UKRI).

Beyond the economic impact, the growing quantum sector is creating highly skilled jobs and developing new products with real-world applications.

Building on a strong research foundation

When launched in 2014, the NQTP aimed to translate the UK's existing quantum science expertise into practical technologies and a new industry.

The programme built on research funded by bodies like the Engineering and Physical Sciences Research Council and Ministry of Defence.

Roger McKinlay, Quantum Technologies Challenge Director at Innovate UK, says: "We set out to create a quantum industry, not just quantum widgets. It is industries, not inventions, which change lives."

The programme's success has also spurred further government backing.

In early 2024, Science and Technology Secretary Peter Kyle announced £160m (US$205m) to fund five new Quantum Research Hubs.

These aim to apply quantum advances to healthcare, computing, national security and infrastructure.

Strategic investments drive sector growth

The UK government has demonstrated a long-term commitment to quantum technologies through its National Quantum Strategy.

This strategy commits £2.5bn (US$3.2bn) to developing quantum technologies in the UK over ten years from 2024, more than doubling current public investment.

The strategy also aims to generate an additional £1bn (US$1.2bn) of private investment into the programme.

It sets out a comprehensive approach to supporting quantum technologies across computing, sensing, timing, imaging and communications, with a focus on developing hardware platforms, software and components.

Recent investments include £45m (US$57m) announced in July 2023, with £30m (US$38m) allocated to developing quantum computing hardware prototypes and £15m (US$19m) to accelerate the adoption of quantum solutions in the public sector.

UK's quantum ecosystem takes shape

The UK's quantum sector is concentrated in the South East of England, particularly around the Golden Triangle of Cambridge, London and Oxford.

This geographical clustering aligns with the fact that nearly half of the UK's high-growth quantum technology companies are academic spinouts.

As of July 2023, there were 51 active, high-growth quantum technology companies in the UK, employing over 500 people.

These companies secured a record £98.9m (US$127m) in equity investment in 2022 across 21 deals, surpassing the previous record of £86.5 million in 2020.

The sector's growth is additionally supported by initiatives such as the National Quantum Computing Centre (NQCC), which represents a £93m (US$119m) investment.

The NQCC is working with businesses, government and the research community to deliver quantum computing capabilities and support industry growth.

Challenges and opportunities ahead

While the UK has made significant progress in quantum technologies, challenges remain. The Royal Academy of Engineering has identified areas for improvement, including upgrading and improving industry access to existing infrastructure, enhancing advanced manufacturing capabilities, and addressing skills gaps.

The Academy also emphasises the need for better coordination and support to help industry navigate the UK's fast-moving quantum landscape.

Collaboration between industry, academia and government is crucial to set a clear direction for quantum technologies and support strategic decision-making.

Roger concludes: “It is industries, not inventions, which change lives and we look forward to showcasing and celebrating these at what is set to be our biggest National Quantum Showcase to date in November.”

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