Can Europe Catch Up
with the US (and China)
in Quantum Computing?
August 2022
By Francois Candelon, Jean-Francois Bobier, Maxime Courtaux, and Gabriel NahasBoston Consulting Group partners with leaders The BCG Henderson Institute is the Boston
in business and society to tackle their most Consulting Group’s think tank, dedicated to
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enabling them to make the world a better place.Contents
01 | Executive Summary19 | Ensuring the EU’s Quantum
Sovereignty
03 | The Global Quantum
Computing Race23 | The EU Needs Business-
Oriented Quantum Talent
08 | Assessing Europe’s Chances
25 | Appendix: Quantum Snapshots,
by Country
15 | The EU’s Rising RisksExecutive Summary
After decades of research, quantum computers are close to becoming
a reality. Several technological breakthroughs have been announced
in recent times, and investments in the field reached an all-time high
in 2021. The myriad benefits of quantum computing, from optimizing
logistics networks to revolutionizing drug discovery, are knocking at
our door.
If the European Union (EU) wishes to capture some of First, the EU has scattered its efforts across the continent
those benefits, it must improve its present position with without forming an interconnected quantum ecosystem.
regard to developing and using quantum systems. Other- Although the Quantum Flagship program is supposed to
wise, the EU will yield ground to the US and China, and coordinate efforts, most countries on the continent contin-
lose the chance to become a technological powerhouse. ue to work in silos. Even at the national level, our analysis
shows, European countries have not achieved the level of
Current Position. Many countries are engaged in a global coordination between stakeholders and companies that
tussle for leadership in quantum computing. Becoming a countries such as the US and China have managed.
leader will require achieving success on three fronts: sup-
port from government entities, commitment from private Second, the EU is creating a private sector with little or no
companies, and attention to developing talent. In this ability to scale. The European nations lack the type of
report, we will evaluate the major players’ positions on private investments that enable quantum computing
these three dimensions to understand the EU’s current startups to scale in the US, which is a venture capital
and future status. powerhouse. Moreover, the EU lacks big digital players—
such as Google, Amazon, and IBM—that have the power
Our research indicates that the US is currently the front-- to consolidate the quantum sector.
runner, leading its peers on every dimension, especially in
private-sector efforts. A trio of pursuers—the UK, China, Third, the EU has a people market that focuses on devel-
and the EU—are well positioned too, particularly in terms oping academic talent. Although the EU has almost as
of government support and talent pools.many top universities focusing on quantum computing as
the US does, BCG estimates that the latter has two to
The EU is among the leaders in public investment and has three times as much talent at work in quantum technology
adopted robust plans, such as the European Commission’s businesses.
Quantum Flagship. But the US remains ahead in winning
patents, setting up startups, and making investments, with Ensuring the EU’s Quantum Sovereignty. The EU, its
China in hot pursuit. The EU is also among the world’s member governments, and policymakers should immedi-
leaders in producing talent, along with the US and China. ately implement bold plans to tackle the emerging risks,
acting on all three fronts to ensure the region’s quantum
Emergent Risks. Although the EU appears strong, thesovereignty.
reality on the ground is less positive, as the continent
displays multiple symptoms that may portend trouble
down the road.
1 CAN EUROPE CATCH UP WITH THE US (AND CHINA) IN QUANTUM COMPUTING? First, the EU should interconnect all quantum computing Third, the EU must create business-oriented quantum
efforts by its member states and stakeholders at the talent, ensuring that people leave academia and support
European level. Success depends on governments’ com- the development of private quantum technology initiatives.
mitment to working together to advance the region’sAccomplishing this task entails developing the region’s
quantum computing capabilities. The EU must prioritize talent pipeline from end to end, and securing adequate
public intervention while aligning its ambitions and funding for the purpose. Moreover, the EU must strive to
strategies across counties and stakeholders.become a magnet for international talent.
Second, the EU needs to foster the conditions necessary to Only by tackling these challenges can the EU realistically
develop a private sector that can scale. Its startups should hope to succeed in the quantum computing industry.
not remain early-stage ventures indefinitely; instead, they Otherwise, the advent of quantum computing could sound
should scale and become digital giants. Governments and the death knell for the EU’s competitiveness and techno-
policymakers will need to work together to tackle the EU’s logical independence.
investment gap, especially in late-stage funding, while
supporting the creation of a market for quantum
computing applications by offering incentives to boost
adoption by incumbents.
BOSTON CONSULTING GROUP | BCG HENDERSON INSTITUTE2