Quantum technology: 32% of the companies, but only 6% of patents are from the EU

The JRC policy report "Future Directions for Quantum Technology in Europe" provides background data that informed the EU Quantum Strategy unveiled recently.

The JRC experts found that the EU is well-positioned in the quantum sector, with its strong research and innovation ecosystem, and significant investments. Today, the EU boasts 32% of the world's quantum technology companies (compared to about one-quarter in the US and 5% in China), more than half of which were created since 2018.

EU quantum technology received around €6 billion of private venture capital between 2012 and 2024, and a growing trend towards investing in more established companies was observed. Additionally, according to JRC estimates based on a narrow interpretation of quantum technology, EU Member States investments and European Commission projects amounted to more than €9 billion between 2014 and 2024.

At the same time however, the EU accounts for only 6% of global patenting. China currently dominates the quantum patenting field (46%), followed by the US (23%).

Nevertheless, the EU has recently seen a significant increase in patent applications, with the compound annual growth rate in patenting more than doubling in 2021-2024. In the same period, global patent filings slowed.

The way forward: less fragmentation, more international cooperation recommended

The report identified the fragmentation of the EU public investments as one of the issues keeping the EU quantum sector from realising its full potential. There are multiple EU funding schemes, member state programmes and international collaborations, without full connection.

While at a research and early-stage development level, it is good to encourage a wide variety of approaches, but selection, focus and collective effort are needed to move to higher technology readiness levels. The urgent challenge now is to reorientate EU quantum programmes, currently scattered in a large variety of applications each of them with a small budget, to reach this objective.

Many of the EU quantum technology companies are small and young, they would need a more focused EU industrial policy to help them scale up, acquire skilled workforce, and develop their infrastructures.

The authors also emphasise the importance of international cooperation, building on the EU's high level of openness to collaborative patenting activities. Currently, approximately 23% of EU patent applications are co-patented with non-EU partners, primarily from the US.

Furthermore, active collaboration with the European Committee for Standardization, the European Committee for Electrotecechnical Standardization, and the European Telecommunications Standards Institute quantum technology committees place the EU in a strong position. Looking ahead, it is crucial to balance the promotion of unique global standards with the protection of the EU industry's interests.

Why is this important?

Quantum technologies can radically transform our computational, communication and sensing tools, boosting Europe's cybersecurity and defence.

Quantum communication allows ultra-secure messaging thanks to the laws of quantum physics. Quantum sensors can detect tiny changes in gravity or magnetic fields, useful for medical imaging, archaeology, or navigation without GPS. Quantum computers promise to, in future, be able to solve complex problems such as medicine discovery or climate modelling much faster than today's best supercomputers.

Therefore, quantum technology is crucial for the EU's economic security and holds the potential to be a game-changer for its industrial competitiveness. To remain competitive, EU must translate the research into products and services that address real use cases, catalysing further development.

Background

The European Commission's Quantum Strategy, adopted in July, aims to turn Europe into a quantum powerhouse that can fuel startup growth and transform breakthrough science into market-ready applications. The JRC provides policy support in this field, particularly on quantum communications, positioning, navigation, timing, security, and more.

In June, JRC laboratories in Ispra, Italy, inaugurated connections to the caesium-fountain atomic clock at the Italian Istituto Nazionale di Ricerca Metrologica and to the Quantum Backbone, the Italian segment of the European Quantum Communications Infrastructure (EuroQCI). The two connections will allow the JRC to carry out cutting-edge research and serve as a reference point for experiments requiring precise timing and quantum security.

The JRC is also establishing a cluster of laboratories and testing facilities to advance knowledge in the fields of precise timing and synchronisation, quantum key distribution and security.

Accompanying policy brief

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