Innovation, Science and Economic Development Canada explain how quantum technology will shape the future of Canada.
Quantum technology and science are at the leading edge of research and innovation, with enormous potential for commercialisation and game-changing advances.
Since the birth of quantum science more than 100 years ago, quantum technologies have been the source of many transformative innovations, including semiconductors and lasers. In the coming years, new breakthroughs will further transform how people work and live. New developments in quantum technology in Canada are well positioned to realise this potential, as the capability to design and engineer quantum states increases.
Emerging quantum innovations will underpin major advances in fields, from computing to Artificial Intelligence (AI) to healthcare, with a vast range of applications. Such applications include developing life-saving drugs and vaccines, locating critical minerals and other natural resources (and mitigating the environmental impact of extracting them), making transportation safer and more efficient, accelerating the design of higher-capacity batteries, and many more.
Quantum technologies will also enhance digital privacy, strengthen cybersecurity, and safeguard digital infrastructure through secure communications. Nevertheless, in the hands of bad actors, advances in quantum computing could put sensitive information at risk. To remain competitive and expand future opportunities, businesses will need to take advantage of the improved capabilities offered by quantum technologies and help futureproof the economy.
Economic benefits of quantum technology in Canada
The next quantum technology revolution is expected to deliver major economic benefits. According to a study commissioned by the National Research Council of Canada (NRC), the quantum sector will become a C$139bn industry in Canada with more than 200,000 jobs and C$42bn in returns by 2045, potentially contributing 3% to Canada’s GDP.1
Canada has taken a leadership position through investments in quantum science over many decades, including more than C$1bn between 2012 and 2022.
Provincial governments have also made significant investments in centres of quantum leadership. In addition, private investors and philanthropists have committed more than C$1bn toward quantum science, innovation, and companies since 2002.
These investments have helped build a growing ecosystem that includes world-class centres of quantum technology in Canada, including universities across the country and pioneering, industry-leading companies.
Thanks to these initiatives, Canada is home to several quantum firsts. Such achievements include:
- D-Wave, based in Burnaby, British Columbia, launched the first computer based on quantum technology in 2011;
- Vancouver-based 1Qbit was recognised by the World Economic Forum in 2015 as the first software company dedicated to producing commercial applications for quantum computers; and
- Toronto-based Xanadu launched PennyLane, the first dedicated Machine Learning (ML) software for quantum computers, in 2018 and demonstrated quantum supremacy in 2022.
Furthering quantum research and innovation in Canada
On 13 January 2023, the Government of Canada launched Canada’s National Quantum Strategy (NQS) to support Canada’s quantum sector and solidify Canada’s leadership in this fast-growing field.
Backed by an investment of C$360m, the NQS is Canada’s plan to harness its strengths in quantum science and advance quantum technologies, which have enormous potential for commercialisation. The strategy will amplify Canada’s existing global leadership in quantum research and grow Canada’s quantum technologies, companies, and talent.
The strategy will also guide the Government of Canada’s future quantum investment, building on more than C$1bn in federal quantum investments from 2012 to 2021. Past research investments have been mostly through competitive granting agency programmes. At the Natural Sciences and Engineering Research Council (NSERC), for example, annual funding for quantum technology in Canada trended upward from approximately C$28m in 2012 to roughly C$58m in 2020. Canada’s largest funding contribution was through the Canada First Research Excellence Fund (CFREF). In 2015 and 2016, CFREF invested C$176.3m in quantum-related initiatives across three universities.
The government has also invested in bringing new quantum technologies to market, which includes investments by Regional Development Agencies (RDAs), the Strategic Innovation Fund (SIF), and the National Research Council of Canada’s (NRC) Industrial Research Assistance Program. In 2019, FedDev Ontario invested C$20m over five years in the Quantum Valley Ideas Lab to support the development of a world-leading quantum technologies ecosystem and build new companies.2 At the same time, three firms located in southern Ontario received funding through the SIF, which aims to spur innovation by providing funding for large projects, with combined RDA and SIF funding which totalled over C$40m. Another example of SIF support is the C$40m contribution to D-Wave announced in March 2021, followed by another C$40m investment in Xanadu in January 2023.2,3 BDC Capital has also launched an early-stage C$200m Deep Tech Venture Fund, which has invested in several Canadian quantum companies.
Canada’s National Quantum Strategy
The NQS is driven by three missions in key quantum technology areas:
- Computing hardware and software, to make Canada a world leader in the continuing development, deployment and use of quantum technology;
- Communications, to equip Canada with a national secure quantum communications network and post-quantum cryptography capabilities; and
- Sensors, to support Canadian developers and early adopters of new quantum-sensing technologies.
Quantum computing hardware and software
Forecasts indicate that quantum computing hardware and software will account for up to C$203bn in global economic activity by 2030. Canadian researchers and companies are at the forefront of the international race to build a scalable high-performance quantum computer. Several Canadian firms now have quantum computing systems that have the potential to solve computational and logistical challenges that are too complex, costly, or time-consuming to solve with conventional technologies.
Canadians are also leaders in the development of software to control quantum computers and link them to classical computer systems, as well as in the creation of quantum technology applications that will make these systems valuable to end users. This advantage could benefit Canadians by transforming a number of sectors. For example, by developing personalised drugs, making Canada’s supply chains and delivery routes more efficient, predicting weather events, modelling climate change, and more.
Early sectors of focus could include digital security, banking, and advanced manufacturing. Many of these sectors are already considering quantum computing. For example, the Bank of Canada collaborates with a broad range of Canadian and international quantum researchers, the public sector and industry to stand at the forefront of the quantum technology revolution.
Communications
Activities vital to our everyday lives depend on secure data usage, storage, and transmission. Among these activities are commercial and financial transactions, government service delivery, the development and maintenance of transportation and utility infrastructure, and ensuring the defence and security of Canadians.
Quantum technology advancements could put the security of digital data and systems at risk due to their potential to break many of the cryptographic mechanisms currently used to protect personal, research, commercial, and government information. Encrypted information transmitted today could be compromised in the future by a powerful quantum computer. Quantum-safe solutions using quantum technologies or post-quantum cryptography can protect data against this threat.
There is an immense commercial market tied to transmitting and securing data and increasing the interconnectedness of devices. Furthermore, a quantum communications network can enable distributed quantum computing and long-baseline sensing, which could increase the capabilities of quantum computers and sensors. There is an opportunity for the Government of Canada to adopt quantum-safe solutions in the future as they become commercially available. It is imperative to develop capabilities in secure quantum communications and post-quantum cryptography to safeguard citizens and strengthen the economy.
Sensors
Quantum sensors will significantly improve the precision, sensitivity, and efficiency of many different kinds of measurements and, in some cases, create entirely new capabilities and application spaces to explore. The deployment of quantum sensors is expected to help solve many pressing problems for Canada by enabling major advances in defence and security, critical mineral exploration and extraction, infrastructure and environmental monitoring, navigation and transportation safety, and healthcare. Early commercial opportunities are on the horizon, with more widespread impacts expected in the next few years. By 2026, the global market for quantum sensors is projected to be nearly $726m.
Canada will need to be an early mover to seize a share of that growing market. This will involve overcoming current technological barriers, including gaps in fundamental science; challenges in building stable and easily reproducible components; and a lack of standards, processes, and devices to characterise components and systems. Barriers related to the highly specialised knowledge and training required for quantum sensor use must also be overcome to enable their widespread adoption in society.
Three pillars of the NQS
Canada’s NQS will provide C$360m in funding under three pillars – research, commercialisation, and talent – across a number of initiatives.
Research pillar
The research pillar will provide a total of C$141m to support basic and applied research to realise new solutions and new innovations in quantum technology in Canada. This includes:
- C$132.5m for three streams of NSERC Alliance grants: quantum, international quantum and consortia quantum, to support research projects led by strong, complementary, collaborative teams to generate new knowledge in quantum science and technology through national and international collaborations; and
- C$9m for the NRC Quantum Research and Development Initiative (QRDI) to grow Government of Canada quantum capabilities and expertise by bringing together departments and agencies to work on collaborative quantum research and development projects, and engage with the broader Canadian quantum ecosystem to address issues important to Canadians.
Commercialisation pillar
The commercialisation pillar will invest a total of C$169m to translate research into scalable commercial products and services that will benefit Canadians, our industries, and the world.
This is split between the following:
- C$50m to the NRC Challenge programmes to bring NRC researchers and facilities together with the private and public sector, academic and other research organisations in Canada and internationally, to advance transformative, high-risk, high-reward research on quantum technology and science;
- C$35m to Innovative Solutions Canada to stimulate research, development and commercialisation of Canadian quantum innovations;
- C$14m to the Global Innovation Clusters to speed up growth in Canada’s quantum technologies industry by encouraging industry leaders, small and medium-sized enterprises and post-secondary institutions to collaborate on large-scale quantum projects; and
- C$70m to the Regional Development Agencies to help support growing firms in key regional hubs to bring innovative products and solutions to market.
Talent pillar
The talent pillar encompasses a total of C$45m to develop and retain quantum expertise and talent in Canada, as well as to attract experts from within Canada and around the world to build the quantum sector. This includes:
- C$5.4m for the NSERC Collaborative Research and Training Experience (CREATE) grants to support the training and mentoring of teams of highly qualified students and postdoctoral fellows; and
- C$40m to Mitacs to support the attraction, training, retention, and deployment of highly qualified personnel in quantum science and technology through internship experiences and professional skills development for post-secondary students, recent graduates and postdoctoral fellows.
Further advances in quantum technology
A Quantum Advisory Council is also being established to provide impartial advice to the government to help grow quantum technology in Canada and ensure that the strategy remains on track. The council is co-chaired by Dr Raymond Laflamme, Professor in the Department of Physics and Astronomy and Canada Research Chair in Quantum Information at the Institute for Quantum Computing at the University of Waterloo; and Dr Stephanie Simmons, Associate Professor in the Department of Physics and Canada Research Chair in Silicon Quantum Technologies at Simon Fraser University, and Founder and Chief Quantum Officer at Photonic Inc.
The Government of Canada has also launched road-mapping exercises while seeking guidance from academic and industry experts for an in-depth rollout plan for each of the NQS missions.
These roadmaps will include detailed objectives, milestones and actions required of academia, industry, non-profits, and government to realise NQS mission goals.
References
- Government of Canada partners with digital industries to invest in ground-breaking technology and businesses, ISED News Release, April 18, 2019
- Government of Canada contribution strengthens Canada’s position as a global leader in quantum computing, ISED News Release, March 11, 2021
- Supporting Canada’s leadership in quantum computing to grow the economy and create jobs | Prime Minister of Canada (pm.gc.ca), Office of the Prime Minister, January 23, 2023
Please note, this article will also appear in the fifteenth edition of our quarterly publication.
