4.2.5 Timeline and investments Building a dedicated quantum team is a long-term investment. Companies can expect the process to take several years, with the timeline depending on the complexity of the quantum technologies being integrated and the existing capabilities of the organization. Initial phases might involve forming a small core team and gradually expanding as the company’s quantum capabilities grow.Investing in a dedicated quantum team allows businesses to build in-house expertise, develop proprietary solutions and maintain a competitive advantage in this evolving market. This committed approach ensures that companies are well- positioned to harness the transformative potential of quantum technologies. The following section will explore how businesses can allocate resources to quantum initiatives to drive growth and innovations. Investing directly in quantum technologies, whether through venture capital, acquisitions or internal funding, is crucial for businesses looking to capitalize on quantum advancements. These investments can accelerate the development and commercialization of quantum technologies. Examples of industries investing to progress quantum research, as well as public institutions and governments investing in quantum centres, highlight the diverse approaches and significant financial commitments being made to integrate quantum technologies into various sectors. 4.3.1 Pathways to investing in quantum technologies The various pathways available are tailored to the maturity and strategic goals of the business. These include venture capital, acquisitions and internal funding, each offering unique advantages and opportunities for growth and innovation. (See Table 11 in Appendix A.4 for details.) Venture capital Venture capital (VC) is a critical pathway for funding start-ups in the quantum technology sector. This approach provides the necessary financial resources for early-stage companies to develop their innovations and bring them to market. For instance, in the finance sector, JPMorganChase and Mitsui have invested in Quantinuum, while Goldman Sachs and Morgan Stanley have backed D-Wave. Similarly, BlackRock has invested in PsiQuantum, showcasing significant interest from major financial institutions in quantum start-ups. In the technology and telecommunications industry, Bezos Expeditions has invested in D-Wave, and Google Ventures has supported IonQ, enabling advancements in ion-trap technology. The pharmaceutical and healthcare sectors have also seen investments, with Amgen and Novo Holdings committing substantial funds to quantum computing start-ups. These investments highlight the broad appeal and potential of quantum technology across various industries.Acquisitions Acquisitions offer a rapid means to integrate quantum innovations into existing product lines, allowing companies to quickly leverage new technologies. In the technology sector, Keysight Technologies acquired Quantum Benchmark, and ORCA Computing acquired the Integrated Photonics Division of GXC. These acquisitions enable companies to enhance their technological capabilities and stay competitive. The pharmaceutical industry has also seen significant acquisitions, such as SandboxAQ’s purchase of Good Chemistry, which combines AI and quantum tech for drug discovery. In the energy sector, Honeywell’s acquisition of Cambridge Quantum Computing exemplifies how acquisitions can enhance quantum computing capabilities. These strategic moves demonstrate how acquisitions can accelerate the adoption and integration of quantum technologies in established companies. Internal funding Internal funding involves allocating a company’s R&D budget to quantum projects, fostering proprietary solution development. This pathway allows businesses to develop unique quantum technologies tailored to their specific needs. For example, HSBC has created a quantum computing practice, and MUGT is using quantum computing to mitigate risks in the finance sector. In the technology and telecommunications industry, China Telecom has established a quantum technology group, and Deutsche Telekom AG’s T-Systems offers quantum computing expertise and access to IBM Quantum resources. The pharmaceutical sector also benefits from internal funding, with Cleveland Clinic and IBM launching the world’s first quantum computer dedicated to healthcare research. Additionally, companies like Volkswagen and Toyota are investing in quantum computing projects to optimize traffic flow and develop next-generation batteries, respectively. These initiatives underscore the importance of internal funding in driving innovation and maintaining a competitive edge in the quantum technology landscape.4.3 Strategic investments Embracing the Quantum Economy: A Pathway for Business Leaders 42

Embracing the Quantum Economy 2024