Australia’s quantum sector has remarkable potential to contribute to advances in computing, communications, and sensing. However, realising the full potential of quantum technologies will involve responding to a number of challenges.
Tightening capital markets and limited domestic investment continue to impact quantum startups
Emerging technologies need more capital to grow and are inherently risky because of the large up-front capital costs. The limited availability of trusted, patient investment remains a growth barrier for the quantum industry. Inflation and rising interest rates have also resulted in increased costs across all facets of business (e.g. supplies, wages, contractors, licensing fees).
In response to this challenge, the Australian Government has prioritised measures connecting Australian quantum researchers and businesses to potential investors, customers and end users. In addition, the NRF has been established as a potential source of investment.
Intellectual property arrangements remain a challenge for quantum research commercialisation
Intellectual property (IP) arrangements can make commercialising quantum research inefficient. A misalignment between the priorities of research entities to control their IP and the needs of industry to efficiently exploit IP creates friction. To reduce risk of return on investment in commercialising IP, businesses (including spinouts or start-ups from research entities) need certainty of IP ownership and its secure long-term use or exclusivity of IP rights. Inefficient translation and commercialisation of research entities’ IP could slow the growth of the quantum technology industry and could put Australia at a competitive disadvantage.
Working with universities to access research expertise and IP can be complex. The Australian Government has developed the Higher Education Research Commercialisation (HERC) IP Framework to facilitate research and commercialisation connections between universities and businesses. The framework provides educational information about IP in university-industry collaborative research, as well as standardised agreement templates to assist in the negotiation process. The government, supported by a Framework Advisory Committee, is currently reviewing the framework to assess how well it’s supporting the navigation of IP negotiations between academia and Australian businesses.
Competition in the international quantum market is fierce
Australia is not alone in its ambition to develop domestic quantum capability and capture a share of the global quantum market. Since the launch of the strategy, our international partners and competitors have announced major quantum initiatives and national strategies to support local quantum players and attract overseas investment. Access to finance, collaborators, customers and infrastructure all play into considerations around market attractiveness. Delivering on the ambition of the strategy is crucial to making Australia a more attractive destination to keep local talent and attract the best from around the world.
We need stronger quantum literacy to support the strategy’s ambition
Levels of quantum literacy in Australia are low. 73% of Australians have never heard of quantum technology, let alone the benefits it may give. This low level of literacy could slow adoption and development of quantum technologies across the economy and inhibit the growth of the talent pipeline. Stronger understanding of quantum technologies across government, businesses and the public will help ensure Australia is able to fully capture the economic and social benefits. The current low levels of quantum literacy, including across government and business, make it difficult for organisations to make informed decisions about when or how to adopt quantum solutions. Organisations like Quantum Australia, Questacon, CSIRO and SQA are critical to growing literacy and trust in quantum technologies and encouraging adoption of quantum solutions as they become available.