How to make "Quantum Computing Made in Europe" a reality

Professor Carolin Häussler holds the Chair of Organisation, Technology Management and Entrepreneurship at the University of Passau and is a member of the Berlin-based Commission of Experts for Research and Innovation (EFI). This commission provides scientific policy advice to the German government and publishes an annual report on Germany’s research, innovation and technological performance. The 2025 report focuses on the topics of digitalisation and decarbonisation as driving forces of structural change, quantum technologies and innovations in water management. In the video interview,  the innovation economist analyses the present economic situation in Germany, talks about the recommendations in the current report and in particular about the opportunities of quantum technologies for Germany and Europe.

What topics does the EFI Commission address in the 2025 report?

In the first part of the report, we evaluate the economic situation and performance of the research and innovation system and propose concrete measures with which the new federal government can tackle the current challenges.

In the second part, we focus on three specific topics. In the 2025 report, these are, firstly: Digitalisation and decarbonisation as driving forces of structural change. Secondly, we present quantum technologies, an area in which Germany currently holds a strong international position in research. We must not gamble away this position. Thirdly, innovations in water management: Due to climate change, we are seeing high fluctuations in water supply in some areas, and here we are discussing how innovation activities and skilfully set framework conditions can help to ensure a secure supply of clean water.

From the perspective of an innovation economist: Why is the German economy not running smoothly?

We are struggling not only with economic weaknesses, but above all with structural weaknesses.

The latter have existed for some time. But now they are so glaring that there is an urgent need for action. However, we are now facing a situation in which growth dynamic is lacking, exports are declining and company insolvencies are on the rise.

This is exacerbated by a transformative change driven by digitalisation and decarbonisation. Change always means opportunity - but only if you have the means to seize the opportunity.  

This is currently difficult in Germany. This can be seen, for example, in the slow pace of research and development activities and the associated low willingness to invest in them. We are seeing that Germany is falling behind in patent applications, especially in artificial intelligence, and companies are relocating abroad and investing in start-ups elsewhere. 

One of the EFI's key recommendations to the German Federal Government is that it needs a clear vision and strategy in research and innovation policy, clear strategic guidelines and more assertiveness. All ministries need to get on board here.

What needs to be done?

We need to restart the flywheel connecting politics, science, business, and investors. But that will only happen if we remove the brakes holding it back.

We now need to create the framework conditions so that we can utilise the opportunities that ground-breaking technologies and innovations offer us today. In this respect, entrepreneurial initiative and a willingness to take risks must be encouraged. The high costs of failure must come down so that companies can once again boldly innovate instead of sticking with the tried and tested. Excessive regulations and reporting obligations must be reduced. This not only creates freedom for companies, but also expands the scope for more efficient government action. 

One of the EFI's key recommendations to the German government is that it needs a clear vision and strategy in research and innovation policy, clear strategic guidelines and more assertiveness. All ministries need to align with the momentum of the flywheel.

We also need an adequate and effective governance structure. For example, we recommend bundling the responsibilities for research and innovation policy in a Federal Ministry for Research, Innovation and Technology (BMFIT). And we reiterate our recommendation to finally create a digital ministry that outlines the broad lines of the digital transformation, develops strategies and drives them forward in a coordinating manner.

There are increasing calls for industrial policy interventions. Will they help us?

The use of industrial policy measures is primarily justified by three objectives: Sustainability, competitiveness and sovereignty.

However, industrial policy interventions are associated with a fundamental problem: How will policymakers know how technologies and business models and the demand for them will develop? This knowledge is most likely available to a large extent in the companies that develop these technologies and business models.

With regard to industrial policy, the EFI recommends to make locations in Germany attractive through outstanding research, the expansion of infrastructure, good conditions for entrepreneurial activity and measures to promote research activities in companies.

What opportunities do new quantum technologies harbour?

New quantum technologies are based on the latest findings in quantum physics and harbour enormous potential for innovation in various fields of technology. 

Quantum computing is currently developing particularly dynamically. Quantum computers can carry out many computing operations in parallel and therefore solve challenges that cannot be overcome with conventional computers - whether in chemistry, the life sciences, finance or the automotive industry. Quantum sensor technology has similarly strong potential, enabling important advances in autonomous navigation and promising progress in medical diagnostics, for example.

There are two major opportunities for Germany and Europe: Firstly, the possibility of taking a leading global position in a key technology of the future. Secondly, quantum technologies open up the opportunity to reduce technological dependencies on non-European players in computing and thus gain more technological sovereignty in one of the most important areas of innovation and growth. 

Thanks to excellent basic research and applied research and development in quantum physics, German players have a good starting position in international competition in quantum computing. But this must not be squandered.

Where does Germany stand in the international competition for quantum technologies?

Thanks to excellent basic research and applied research and development in quantum physics, German players have a good starting position in international competition in quantum computing. But this must not be squandered. Although many developments in quantum technologies are still at an early stage, US technology giants such as IBM, Microsoft and Google are already working flat out to transfer new findings from quantum research into practical applications. One example: of the almost 1,800 patent applications worldwide in the field of quantum computing over the past two decades, around half come from the USA and only a good 70 from Germany, i.e. just under 4 per cent. This is often a weakness in the German research and innovation system, because excellent research alone is not enough to secure a leading position in global competition in the long term. Germany has too often developed ground-breaking ideas that were later brought to market elsewhere.

What needs to be done so that Germany can keep up in the global race for quantum technologies? What is Europe's role?

We need to become more strategic. In the EU and also in Germany. We need to join forces within the EU and strategically coordinate national competences.  Our goal should be a powerful European quantum ecosystem - with close networking between research institutions, companies and investors. At national level, we are proposing a coherent quantum strategy that sends clear signals to scientific and private sector players for a long-term commitment with a sustainable funding concept. The funding framework of the previous federal government's quantum action plan ends in 2026, so there is an immediate need for action to ensure that promising projects are not pulled out now.

At the same time, we should promote the development of regional research and innovation clusters that are clearly specialised, allow low-threshold access to computing infrastructure and network across regions. And we need to accelerate the transfer of research into application, for example through a quantum benchmarking platform.

It should also be noted that quantum technology is deep tech. This means that companies need staying power. Deep tech needs capital - and lots of it. Sufficient venture capital must be available for the growth phase of young companies. We recommend tax breaks and the establishment of investment funds to mobilise private capital. We also recommend to make more use of open-technology anchor customer contracts - with clear cancellation criteria.

We have a great opportunity here to take a leading global position in a key technology of the future and thus raise Germany and Europe to the top as a centre of technology. In the future, ‘Quantum Computing Made in Europe’ may even become possible.

In your opinion, should the new German government put quantum technology at the top of its agenda?

We have a great opportunity here to take a leading global position in a key technology of the future and thus raise Germany and Europe to the top as a centre of technology. In the future, “Quantum Computing Made in Europe” may even become possible. For this, however, we need the right framework conditions, which the new German government must ensure.

However, there is a need for action not only for economic reasons, but also for security reasons. The enormous increase in computing power through quantum technology increases the risk of cyber attacks - a threat to private, commercial and political areas where secure communication is important. Action must be taken today, because tomorrow will be too late. Why? Because it is already foreseeable today that conventional encryption techniques will no longer be secure thanks to quantum computers.

This text was machine-translated from German.

 The Commission of Experts for Research and Innovation (EFI) provides scientific policy advice to the German government and publishes a regular report on Germany’s research, innovation and technological performance.