Recent Investments and Innovation in Quantum Computing
Recent years have seen a surge in investment in quantum computing, offering compelling insights into the nature of innovation. Identifying the precise origin of a new technology is rarely easy, but it’s safe to say that quantum computing will turn forty next year. In 1981, American physicist Richard Feynman remarked at a computing conference that nature is not classical, and in order to simulate it effectively, one must build it quantum mechanically—highlighting the very challenge that has since defined the field.
Forty Years of Quantum Progress
As this technology enters its fourth decade, it has at least reached the stage of being a viable commercial proposal. While many have long believed that real-world applications of quantum computing remain at least a decade away, some investors now think otherwise. Venture capitalists have begun pouring funds into quantum computing startups. While the risk remains high—given the technical limitations still faced—these investors are betting on a future in which quantum computing becomes commercially viable.
If this vision materializes, the implications go well beyond investor gains. Quantum computers have the potential to perform specific types of calculations and mathematical operations far faster than any classical machine. This could trigger revolutionary advances, especially in fields such as chemistry, where current computers struggle to accurately simulate complex reactions. The ripple effects could transform material sciences, pharmaceuticals, energy storage, and more. Moreover, quantum optimization capabilities may significantly enhance logistics, finance, and artificial intelligence.
How Quantum Computing Evolves in Complex Societies
Quantum computing also serves as a model for how complex technologies develop in modern industrial societies. The key takeaway lies in appreciating every phase of this evolution. While the world of startups, venture capital, and IPOs—especially in Silicon Valley—is often focused on classical computing, such commercial activity typically occurs only in the later stages of a technology’s life cycle. As Mariana Mazzucato, the American-Italian economist, argues, the greatest risks are taken when technologies are still immature, and their success is far from assured.
The First Steps: Public Investment and Fundamental Research
The early steps in building a quantum computer involved extensive calculations and theoretical work in academic settings. Governments such as the U.S., UK, China, and Germany invested billions of dollars in quantum research. Key breakthroughs also came from major tech firms—for instance, the first quantum algorithm was developed in 1994 at Bell Labs. IBM, a historic leader in this field, also contributed significantly; some of its researchers have even won six Nobel Prizes. Today, Google and Microsoft are among the tech giants leading the charge in quantum development.
Investors in these early stages must make informed decisions about when to assume risk and when to pull back. Experienced venture capitalists tend to make such calls dispassionately, guided by proximity to the market. Governments, using public funds, must also adopt this mindset—recognizing that supporting high-risk technologies comes with a significant chance of failure.
Rethinking the Innovation Narrative
Quantum computing’s journey also challenges popular narratives of innovation. This field has advanced through the efforts of thousands of mathematicians, physicists, and engineers—debunking the “great man” theory that credits innovation to singular figures like Steve Jobs. Another flawed model portrays innovation as a simple “pipeline” from idea to product. In reality, quantum computing has relied on interdisciplinary advances, including laser technology and cryogenics.
This does not diminish the role of those who take final steps to commercialize a technology. However, aspiring entrepreneurs and investors must recognize the invisible work and foundational research that make such breakthroughs possible.
Source:
“From cloisters to the cloud”,The Economist USA, 26th September – ۲nd October 2020
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