Forget AI, Britain can win the quantum era
Britain might not have the deepest pockets anymore, but in quantum theory, small is powerful, writes Tom Adeyoola
When I left university, Britain had produced the biggest company in the world, Vodafone. We dominated the market. We generated the big businesses. We had, essentially, won the mobile era. I thought it was great – it meant I got a phone long before my American friends.
But then America won the internet era. It had the tech giants; the big tech companies, like Google and Amazon, that got to IPO. China, you could argue, has won the cleantech era, leading in solar power, wind power, batteries and electric vehicles. And right now, the US is dominating in AI, investing at a level with which no one can hope to directly compete.
So where does that leave Britain?
We might not have the financial heft or the manpower of a US or China, but we certainly have the intellectual firepower. Pound for pound, we are home to the best research base in the world. We therefore should be focusing on the next waves of tech transformation coming out of our world-renowned institutions. And most importantly, we must ride those waves, rather than let them wash over us.
I say waves plural because there is a whole bunch of emerging technologies where there are genuine UK-led advances that are going to alter all our lives in the coming years. One of those is quantum.
UK startups are hitting the big league
After a decade of concerted, joined-up effort, the sector has reached a new level of maturity, producing breakthrough after breakthrough, from medicine to navigation systems to superfast computers. UK quantum really is on the brink of the big time.
This has, in large part, been the result of a government that got it and backed it. UK institutions have worked hand in hand on quantum like no other industry I can think of: the Department for Science, Innovation and Technology; Innovate UK; the Engineering and Physical Sciences Research Council; and the National Security Strategic Investment Fund. The result is a truly vibrant cohort ready for the next step.
Innovate UK has supported over 150 different quantum companies over seven years. Seven are unicorns, one is a decacorn. Four are currently raising over £100m. Our annual Quantum Showcase is the second biggest quantum event in the world. The names of our quantum companies roll off my tongue – Riverlane, Universal Quantum, Aegiq, Aquark, Phasecraft, Delta G – because they’re such a prominent part of our portfolio.
A great example is Nu Quantum, a Cambridge University start-up which has just received a $60m Series A investment, a record for UK investments in this emerging technology.
The startup has received grants from Innovate UK as well as VC backing and it credits UKRI’s support as being fundamental to bringing in private capital.
We have done a fantastic job at nurturing companies like Nu Quantum from early stage to this moment of excitement.
How Britain can own the quantum era
Next, businesses like this will be looking to raise not millions but billions of pounds, setting their sights on transformative, real-world applications. So how can we help? How can Britain win the quantum era?
We need to be one step ahead, not only nurturing the high-potential businesses through this stage, but also nurturing markets, businesses and investors so they’re ready to receive them.
In a more uncertain, more competitive world, this mission is urgent. The technologies coming through today – clean energy, quantum, AI, engineering biology – will shape the global economy for decades. The UK must be in a position to lead in creating them, not just adopting them.
It’s for this reason I am setting out today in our new prospectus how Innovate UK will help deliver this mission.
Our focus will be on the UK’s deep and hard-tech innovators: businesses based on significant scientific or engineering breakthroughs in sectors shaped by the government’s priorities in the Modern Industrial Strategy.
By focusing on sectors and technologies where the UK has a genuine right to win, we help create high-value employment, strengthen regional growth, crowd in private investment and support national competitiveness.
The economic prize is huge. If we could multiply the impact of some of the largest companies across our priority sectors, then the win will be big in terms of jobs, GDP and money in our pockets.
In our new prospectus we are outlining how we will track these businesses as they scale, stepping in when our support can make the greatest difference and stepping back when private investment takes over.
To achieve this we will streamline our offer so it is clear, straightforward and accessible to businesses.
As an agency, we have got to be more comfortable supporting businesses beyond our funding envelope. We’ve got to appreciate the value we bring through relationships, advice, support, guidance. Ultimately, we must see ourselves as shepherding these priority sectors to success, and making sure those success stories stay in the UK.
If we get this right, it can be era-defining. Just as I graduated into the mobile era, I want my kids to graduate in the quantum era. More than anything, I want Britain to own that era. We might not have the deepest pockets, the largest workforce, the most plentiful natural resources. But in quantum theory, small is powerful. And, with the right ingredients and interventions, I really believe this small, bold, ingenious nation can win.
Tom Adeyoola is executive chair at Innovate UK