IBM urges broader national quantum strategies beyond computing.

07.07.2026 ForkLog

Governments should develop quantum communications, sensors, post-quantum cryptography, talent, and supply chains rather than limiting strategies to computing alone, according to a report by IBM’s Center for The Business of Government.

The document compares the strategies of the United States, China, the European Union, India, and Australia across five areas:

• investment;
• innovation;
• education;
• security;
• international cooperation.

The central thesis is the risk of “tunnel vision.” Countries that focus only on quantum computers may fall behind in secure communications, high-precision sensing, and protecting data from future cryptographic attacks, the authors said.

“Global investment in quantum technologies exceeded $40 billion in 2024, and countries around the world have allocated substantial public and private resources to prepare. In this environment, using quantum computing for public value requires more than awareness — it requires strategic action,” the authors noted.

Why it matters

Sensors based on quantum effects can be used for ultra-precise measurements, navigation, medical imaging, and geological exploration. Communications solutions in this field relate to secure data transmission. Post-quantum cryptography is needed to move away from algorithms that could become vulnerable to sufficiently powerful quantum computers.

The report explains the urgency through a “harvest now, decrypt later” scenario, in which an attacker may intercept encrypted data today and decrypt it later when the capability exists.

What the authors propose

Experts say countries will gain an advantage if they can sustain investment over years, train specialists, protect digital infrastructure, and translate research into applied solutions.

For governments, the nearest practical track is not waiting for a universal quantum computer but preparing infrastructure for post-quantum cryptography. This area already has standards, deadlines, and a clear set of actions: inventorying systems, updating algorithms, vetting suppliers, and migrating digital signatures.

“These recommendations acknowledge budgetary, organizational, and geopolitical constraints, […] while demonstrating that the cost of inaction exceeds the cost of long-term engagement,” the report says.

The authors also noted that many quantum developments arise at the intersection of academic, government, and commercial projects, so complete isolation can slow progress.

The United States, China, and the EU

The report describes the United States as having a strong research base, national laboratories, universities, and private capital. U.S. quantum startups raised more than $1.5 billion in venture funding in 2024, according to the report.

In May, the U.S. Department of Commerce allocated $2 billion to domestic companies working on quantum computing. The U.S. government will take minority stakes in these projects. Half of the amount will go to IBM “to help create supercomputers capable of solving some of the world’s most pressing problems.”

China follows a more centralized model. The document mentions about $15.3 billion in state investment but highlights the opacity of Chinese spending and the variability of external estimates. The strategy emphasizes quantum communications, centralized planning, and the role of state institutions.

On June 30, the Xuhui district of Shanghai launched the Shanghai Quantum Computing Future Industry Incubation Zone. The initial group included 26 unnamed companies. According to media reports, support measures provide up to 100 million yuan ($14.7 million) for fundamental research, technological innovation, and shared platforms. An additional 20 million yuan ($2.9 million) will be allocated for first installations or initial product versions.

The authors attribute about $10 billion in public funding to the European Union. Key initiatives include Quantum Flagship and EuroHPC quantum infrastructure. The report notes that commercialization in the EU is more difficult than in the United States, and research remains partly fragmented among member states.

In July at the Digital Skills EU Days in Brussels, it was announced that three digital skills academies would be launched — in quantum technologies, artificial intelligence, and virtual worlds. The initiative aims to address the shortage of specialists in key technology sectors. The EU aims by 2030 to raise the share of adults with basic digital skills to 80% and the number of specialists to 20 million.

India is presented as building its fundamental base through national programs and international partnerships. Australia is described as a market with a strong scientific school but facing challenges in commercialization and talent retention. Earlier, photonic quantum computer developer PsiQuantum began construction of a facility in Queensland, where the company plans to deploy a fault-tolerant, industrial-scale quantum computer.

The analytical organization Special Competitive Studies Project concluded that the United States still holds a slight lead over China in the quantum race. However, the gap is narrowing and could disappear within a few years.