A Blueprint for Canadian Deep Tech Leadership from Quantum Industry Canada
Lisa Lambert explains how Canada has established a globally leading position in quantum technology, and what it will take to see it through
Introduction
I recently had the opportunity to interview Lisa Lambert, CEO of Quantum Industry Canada, on the state of quantum technologies in Canada. I have had an eye on this space for a while now, as it is an outlier in Canadian deep tech sectors in that Canada is actually leading globally in many respects.
My goal in this interview was to understand how this came about, and to understand whether Canada’s path to its leading position in quantum technologies could be replicated in other deep tech sectors.
This one is by necessity a long post - your email client will probably truncate it before you get to the key takeaways at the end, so be sure to read the web version if you want to get the whole story. Many thanks to Lisa for the detailed and thoughtful responses!
Interviewer’s note: The QIC team approved the final version of the section entitled “Interview with Lisa Lambert” and had editorial input on that section, with the option to rephrase and expand on the ideas discussed in the interview without changing or removing any intended meaning. The key takeaways presented at the end are my own commentary, and do not necessarily represent the views of QIC.
Interview with Lisa Lambert
Kyle Briggs: Tell us about quantum technology generally. What are the promises and potential applications of quantum technology that are driving its development?
Lisa Lambert: Let’s start with quantum mechanics, which is the science of how things behave at the tiniest scales and where the rules of everyday physics that we're used to no longer apply. We've been studying this for 100 years now—we're coming up on the 100th anniversary in 2025, which the UN has declared the International Year of Quantum Science and Technology. But we're now at a point where we’ve figured out how to really harness quantum mechanics to build some technologies that were never possible before.
This is really quantum technologies 2.0. The first quantum revolution — quantum technologies 1.0 — we take for granted, as our whole world relies on quantum technologies 1.0. Our GPS system, for example, relies on our initial fundamental understanding of quantum mechanics and is used basically throughout the world. Lasers, MRI imaging, nuclear energy, and transistors are other examples of this. There are more, but we're moving to a new era within quantum and what our capabilities are, which is really exciting. We're now entering the second quantum revolution, where we can actively create, manipulate, and measure quantum states of matter. This new era, often leveraging the quantum effects of superposition and entanglement, is moving beyond theoretical physics into the engineering stage of practical applications.
Canada is a forerunner on the research and commercialization side of this second quantum revolution. We had some early strategic investments on the research side, both public and private investments that have catapulted Canada to a global leadership position. We actually vaulted quantum computing into the commercial arena as well. I'll talk about that a little bit more in a second, but first I want to clarify a common misconception about quantum technologies.
A lot of people, if they know about quantum, might know quantum computing and think that’s the only quantum technology. But there are different types of quantum technologies, and Canada has strengths in the research and development of many of them. Among these there's quantum computing, both hardware and software (sometimes called algorithms in the field), which uses the principles of quantum mechanics to process information in new ways, tackling complex problems unreachable by the computers we use today (what we call classical computers). There's quantum communications and networking, which seeks to offer enhanced data transmission security with quantum mechanics and it's working towards creating ultra-private communication networks with significantly improved protection for sensitive business information. Related to this is a technology called post-quantum cryptography (PQC), which is in and of itself not quantum, but involves using some fancy mathematical tools to enhance our cybersecurity to be resilient to an attack from a quantum computer. And then we've got quantum sensing and imaging, which seeks to provide unmatched precision in measurement and detection, and enables different advancements in fields everywhere from healthcare diagnostics, environmental monitoring, to navigation systems.
Going back to quantum computing, it aims to tackle some complex problems that are currently beyond the reach of today’s computing. Potential applications include everything from supply chain optimization, to financial modeling, to material simulation, to drug discovery, to far more. We've got some ideas as to what that will do, but what's most exciting is as this technology continues to evolve, we're going to learn a whole wide range of things that we don't yet know now for what the possibilities are, just like we've learned as we’ve developed and deployed traditional computing, wireless communication, the internet, and other technologies.
I mentioned earlier that Canada vaulted quantum into the commercial arena. Canada is home to the first commercial quantum computing company, which was founded 25 years ago: D-Wave back in 1999. We also launched the quantum software industry, with 1QBit being the first player in that space, founded in 2012.
If you look at what's happening today in the quantum sector, Canada is currently home to the second highest number of quantum startups globally and we lead in quantum companies per capita (source: The Council of Canadian Academies’ Quantum Potential report). So we are among the frontrunners in what has become a global race to develop these critical technologies. And if you look at Canadian companies, it's mostly small and medium sized enterprises and they're competing toe to toe with the global technology giants, in a very capital efficient way. They're leading the pack, pushing innovation and pushing the technological edge in this field right now. For example, Xanadu is the first and only startup to date to demonstrate quantum computational advantage. They did it just after Google did without the big resources that Google has. It was Xanadu’s pandemic project to do so, and their software development kit, PennyLane, is one of the leading SDKs in the world. Nord Quantique is another example of a Canadian quantum SME pushing the frontiers of what’s possible. They are a startup out of Sherbrooke, Quebec, and they're the first company to build a logical qubit beyond break even, which is really key technological achievement for error correction, which is one of the biggest challenges in scaling quantum computing.
Kyle Briggs: How does Quantum Industry Canada fit into all of all of this?
Lisa Lambert: Quantum Industry Canada, or QIC for short, is the premier industry-led national consortium that unites quantum technology companies and allied organizations with the goal of propelling this sector forward for the benefit of Canada. Our mission is to translate Canadian quantum capabilities and strengths into global business success and national prosperity. So, QIC is focused on the commercialization piece, not just continuing Canada’s tradition of being really strong on the research side, but addressing the question of how we capitalize on our knowledge and turn it into an engine for the Canadian economy going forward and harness the fullness of Canada's quantum potential.
Our consortium is expanding quite quickly. We're working with about 70 organizations across the country right now, most of those being Canadian-controlled SMEs. We have three main core goals.
First, we're looking at how to support Canada's quantum industry in achieving global commercial success while enhancing economic prosperity for Canada. Some of that's facilitating access to key resources and opportunities, and a lot of it involves building the road in front of us, tackling common challenges facing our companies. So I often think about, “How do we better identify and address some of the key gaps, blockers, and friction points that are getting in the way of developing Canada’s quantum industry and how do we figure that out together?” Even amongst competitors, there are a lot of common gaps and blockers, and we can get farther by working together to address them, especially systemic challenges. Moreover, standing up a new industry is a team sport, and it’s crucial for us to collaborate with stakeholders beyond just the quantum and enabling technology companies, but also governments, early adopters of these technologies, investors, the research community, etc.
“Build” is our second core goal: How do we develop early commercial pathways for our industrial base here in Canada and globally? How do we nurture and expand the ecosystem through networks and strategic partnerships? While Canadian companies need to think globally from the outset, they also want to be close to their customer base. That can help retain companies and IP in Canada while spurring innovation in a wide range of sectors applying these new technologies. The thing is, we know traditionally in Canada our business landscape is usually not the early adopters of leading-edge tech, which makes it challenging to build up new deep tech sectors like this one in Canada. So stimulating domestic procurement and adoption is something that is top of mind, while we also work to build bridges across borders.
Our third core goal is to promote and inform. It’s important to raise awareness and to showcase Canada's quantum capabilities and the growth opportunities that are emerging from the commercialization of quantum technologies. In Canada, we're a bit modest sometimes, and this can be to our detriment. When it comes to quantum, we have been a global powerhouse. So at QIC, we think about how we can fly that flag and do a better job celebrating our achievements, while recognizing the importance of not letting up and even enhancing our commitment to realizing the full potential of this sector to shape a prosperous Canada where we are at the forefront of the quantum economy.
It’s also super important to be a trusted source of information in a sector that can feel a little bit opaque to people and where it can feel challenging to understand where and how to get started. So, QIC aims to help serve as a reliable compass. For us it's important that we are a source of trusted and credible information that people can rely on. Every emerging sector has its share of hype, and we work on cutting through that hype, ensuring that stakeholders have a trusted partner they can turn to to understand the state of these emerging technologies and how these technologies might impact them so they can plan accordingly and move forward with becoming quantum-ready.
Kyle Briggs: Tell me a bit about yourself and how you ended up leading Quantum Industry Canada.
Lisa Lambert: I was first exposed to quantum 15 or so years ago, when I took up a role at the Perimeter Institute for Theoretical Physics, which was a close collaborator of the University of Waterloo’s Institute for Quantum Computing (IQC).
Prior to that, I was working at the Council of Canadian Academies (CCA), which convenes independent expert panels to analyze and interpret the best available knowledge on complex, pressing issues in a range of policy areas of importance to Canadians.
In my first week on the job at Perimeter, I had the opportunity to visit IQC and learn more about what they're up to firsthand. My host was Raymond Laflamme, a world-renowned quantum scientist, co-founder of IQC, and now serving as the co-chair of the Quantum Advisory Council to Canada's National Quantum Strategy. Ray was very patient with me, and I remember walking into the lab and seeing what looked like these giant beer kegs all over the place. Ray pointed out that these were in fact quantum computers. These were the absolute cutting edge at that time, and the pioneering work to unlock this new technological frontier was happening here in Canada. I was in awe. It was incredible.
It's a bit wild to think back only about 15 years to those early machines and what was the bleeding edge at the time. It was not that long ago and we’ve come leaps and bounds since. If you look at what Canada’s quantum computing companies are working on today, the machines I saw at IQC years back are primitive by comparison. During my time at Perimeter, I had the privilege of working closely with IQC and some of the leading quantum scientists at both institutions, and I was captivated by their work. It was so fascinating to see through what felt like a window into the future.
After that, I moved to Vancouver to join the leadership team at TRIUMF, Canada’s particle accelerator centre. I worked there for a number of years and was exposed a bit more to tech transfer through the lab’s spinoff companies and commercialization arm. I found the complexities of the journey from lab to market to be quite interesting.
The particular intersection between science and society piqued my curiosity, and stitched together my learnings from a few other experiences, including (1) my work on a report at the CCA titled Innovation and Business Strategy: Why Canada Falls Short; (2) my involvement in launching the Waterloo Global Science Initiative (WGSI) and its first summit Energy 2030 which involved a global exploration of how cutting edge science and technology could advance a sustainable future; (3) as well as my commitment to level up my business acumen, which led me to work with entrepreneur and author Seth Godin and a global team on what was at the time a very forward-thinking approach to equip business leaders with critical skills like leadership, strategy, decision-making, sales, and marketing.
When I was deciding on my next career move, I chose to go into innovation consulting, working mostly with science-based tech companies and taking on a number of other projects that were really interesting to me and gave me a chance to make a significant contribution while learning from some exceptional people.
Quantum was coming up in some of my work, which gave me a lens to see how far the field had come in the last few years. A lot of the researchers that I worked with were now CEOs or leaders of trailblazing quantum technology companies. My curiosity led me to consider how I might be able to bring some of my skillsets together to help advance this nascent industry.
The timing worked out well as it coincided with the CEO opportunity at QIC. I successfully went through the recruitment process and have the privilege of now leading the organization and working with some of the most ambitious, enterprising, and inspiring innovators I’ve ever known.
Kyle Briggs: As you mentioned before, Canada is among world leaders in quantum technology, which makes it somewhat unique among deep tech sectors. What combination of factors can you identify as being the key to catalyzing and building that leadership position?
Lisa Lambert: There’s been a number of key ingredients that when combined have gotten us where we are today.
Our early start was instrumental, and quite visionary. Engagement from the public sector at all levels of government has been instrumental in driving this forward, as has investment from the private sector over the years.
Today, we’re in the process of reaping the rewards of foundational research investments made decades ago. So we've done a great job of nurturing a vibrant research landscape for quantum in Canada.
Related to this is our leadership in training highly-skilled people in this sector. Workforce development is a hot topic and quantum right now, given the demand for talent as the industry grows. Our estimate is that there are currently a little over 2600 people working in the quantum industry in Canada. A study commissioned by the National Research Council of Canada (NRC) a few years ago projected that Canada’s quantum sector will create over 220,000 jobs and contribute to over 3% of the country’s GDP, including direct, indirect, and induced impacts. That is a significant growth trajectory for this sector, and one of the key dependencies is people — and it’s important to note that most don’t require a graduate degree.
Another factor is that Canada has served as the classroom to the world for quantum. For example, the Institute for Quantum Computing, which is today the world's largest quantum computing research centre, was one of the first to offer dedicated graduate programs for quantum and a summer school for undergraduate students, in addition to outreach programming. Being one of the first out of the starting blocks led to a period where about one third of the global quantum workforce had a touch point with IQC. That’s shifted now, as more quantum programs have launched across Canada and around the world, but it's an impressive testament to our early foresight and leadership in this sector.
Canada is also home to programs like the Creative Destruction Lab (CDL). I don’t know if this is still the current figure, but there was a time where upwards of one half of quantum startups globally had gone through CDL.
For some of them, going through CDL and being exposed to Canada’s quantum scene led them to want to partner with Canadian companies and even set up an international office here.
Multiverse Computing, a Spanish-based company and the biggest quantum software company in Europe, is a good example of this.. Their first international office was established in Toronto because of the potential they saw in the ecosystem when they were in the CDL program, from talent, to partners, to potential adopters, to access to the US market. Their Canadian office provides a strong strategic position for them, and also offers a welcoming environment with many parallels to European culture.
Another critical factor comes down to the boldness, resilience, and ambition of Canada’s quantum entrepreneurs. The journey of building a deep tech company in Canada is not for the faint-hearted. Nevertheless, our entrepreneurs are rising to the challenge and striving to build world-class companies while also working together with the QIC community to redefine what it means to build a deep tech company in our country. They're tackling the inherent complexities of quantum technologies while also addressing the unique challenges of building and scaling frontier technology companies in Canada. Their collective efforts are not just building individual companies, but strengthening the entire Canadian quantum industry.
While the combination of these key factors have gotten us to where we are today, it’s crucial to recognize that what got us here is not going to get us there.
There is a perpetual issue in Canada where we've struggled to translate our research excellence into value creation, economic growth, and prosperity for our country. If we want to chart a different path for Canada moving forward, we need to better understand and address what’s behind this issue.
As we herald a new industry that Canada helped pioneer, we must learn from our past experiences in sectors where we lost our initial lead. It's crucial that we make strategic choices to leverage our early quantum technology advantages effectively. We need to create an environment where our homegrown quantum and enabling technology companies can thrive. This approach will foster a globally competitive industry in Canada that retains talent, develops and protects intellectual property, attracts investment, and translates our research excellence into long-term economic benefits for our nation.
As we consider Canada's future and our innovation landscape, we face crucial questions: Are we content being the world’s back office R&D shop for advanced technologies that we pioneered, with our primary export being talent? Or do we aspire to move up the value chain and fully capitalize on our innovations? We must decide how to leverage our strengths to maximize the long-term benefits for Canada's economy and society.
We must decide soon if we want to chart a different course for quantum. Many countries worldwide have rapidly accelerated their focus and investment in quantum technologies, deeming them essential for both economic prosperity and national security. What got us here won't keep us at the forefront of the next leg of the global quantum race. If we stay the course we're on, we risk falling behind and missing out on the immense opportunities this revolutionary technology offers.
As I reflect on this pivotal moment where we decide Canada’s role in our quantum future, I can’t help but think about Taiwan's strategic approach to semiconductors, which transformed that nation's future. Quantum presents that kind of potential for Canada. We have significant advantages, particularly in the enabling technologies crucial for quantum development. Our strengths span across telecom, photonics, nanofabrication, microelectronics, cybersecurity, and post-quantum cryptography, to name a few. These sectors, many of which have connections back to our historical telecom industry, have converged to create a unique and powerful quantum ecosystem in Canada.
The next few years are critical as the global community recognizes the industrial opportunities in quantum technologies. We must leverage our diverse technological strengths and act decisively to maintain our competitive edge in this rapidly evolving field.
Kyle Briggs: You mentioned earlier a couple of key early investments that really catalyzed things. Tell me a bit more about that.
Lisa Lambert: I'll start by sharing one that I'm most familiar with because I was privileged to be part of that journey.
The Perimeter Institute for Theoretical Physics was envisioned in 1999 by Mike Lazaridis, Co–Founder and then Co-CEO of Research In Motion (RIM), now BlackBerry. Recognizing that much of today's technology—from computers to GPS, wireless communications, and diagnostic imaging—stemmed from breakthroughs in theoretical physics, Lazaridis donated $100 million, one-third of his fortune at the time, to establish a world-leading physics institute. This may still be the largest philanthropic investment in basic research in Canadian history.
In 2002, Lazaridis followed this by founding the Institute for Quantum Computing at the University of Waterloo. Both the provincial and the federal governments at the time stepped up and invested too, along with additional private donors. These initiatives created the backbone for what has become known worldwide as Quantum Valley in Waterloo Region, the first of its kind. Only in recent years have we begun to fully appreciate the scope of Mike Lazaridis’ vision, reminding us that ambitious projects require investment, collaboration, commitment, and patience to bear fruit.
Toronto and Ottawa have also been important scenes in Ontario for the development of Canada’s quantum strengths and capabilities over the years.
Beyond that, there's been catalysts in a few other key regions across Canada. This year marks the 40th anniversary of BB84, which was co-developed by Canadian Gilles Brassard at the Université de Montréal along with Charlie Bennett, and is the first quantum cryptography protocol. Alexandre Blais and Christian Sarra-Bournet have been driving forces for the sector at the Institut Quantique at the Université de Sherbooke, and now there is Distriq, the Quantum Innovation Zone in Sherbrooke, which is helping to accelerate what has become a globally recognized ecosystem. Elsewhere in Quebec, Montreal, Bromont, and Québec City are home to leading researchers and companies in quantum and enabling technologies..
Moving west, Barry Sanders has been a driving force in Calgary, Alberta over the years, and we’re now seeing new public and private investments to develop a global quantum solutions hub in Calgary as well as to advance foundational research in quantum in Calgary, Edmonton, and Lethbridge. In BC, early research led to the spin out of D-Wave from the University of British Columbia and the founding of 1QBit. UBC is also home to the Blusson Quantum Matter Institute, which works with a number of industrial players, and Simon Fraser University has a number of strong research programs, which helped to attract Stephanie Simmons who founded the quantum computing company Photonic.
This isn’t exhaustive, but you can see the narrative emerging of what is a really beautiful story for Canada having a visionary, long-term view that harnesses regional strengths for the development of transformative technologies and a new sector. It’s an ambitious endeavor that takes collaboration and time, stretching far beyond an election cycle.
Kyle Briggs: You mentioned earlier that Canada has the highest per capita density of quantum startups in the world. What it is about the quantum ecosystem that enables those startups to get through the valley of death. Why are so many able to continue to exist in Canada where so many other deep tech sectors struggle?
Lisa Lambert: They're still striving to get through the valley of death. It’s important to realize that different quantum technologies have different pathways and timelines to commercialization.
We have companies that are selling products and services today. These are mostly companies focused on enabling technologies and post-quantum cryptography solutions.
Another tech that's coming into the market is quantum sensing. Canada is home to quantum sensing companies like SBQuantum, that currently offers a quantum-sensing solution for the mining industry.
So some quantum and quantum-related offerings are in the marketplace today, while others require a longer term view to their development and commercialization cycle. This is especially true when it comes to building what's called a “universal fault tolerant quantum computer,” which is a quantum computer at a scale that can be useful for business applications. But just because a technology takes some time to develop doesn’t mean there's no need for urgency in taking thoughtful actions to accelerate progress and prepare businesses for the quantum era. In fact, I’m more concerned that we won’t be ready when quantum technologies reach maturity, failing to recognize their far-reaching implications.
I'm blown away by the ambition and the resourcefulness of our quantum entrepreneurs in this country. They're incredibly clever in figuring out how to take the next step to get where we need to go, and they've been extremely capital efficient and resource efficient in doing so.
However, there are limits to that efficiency and further investment is needed now so that this sector can not just persist, but thrive in Canada for the benefit of our country.
Procurement is really important, and an area where Canada has faltered. Other countries have been successfully leveraging government procurement as a means to accelerate the development of quantum solutions, and this has many positive knock-on effects for their ecosystems, including helping with the attraction and retention of talent, advancing the TRL levels of key technologies, supporting the development and retention of IP, stimulation of private investment, and more. While other countries have been bolstering procurement initiatives, the Government of Canada has made cuts to key commercialization programs like Innovative Solutions Canada (ISC). While the ISC program is not without its flaws, it’s been an important initiative for the country’s homegrown quantum sector. The QIC community provided input into the Government of Canada’s recent consultations on legislated procurement targets, so we’ll see what comes of that.
Kyle Briggs: On that topic, what are the biggest hurdles that Canada needs to overcome to deliver on the promise of quantum technologies beyond the basic research?
Lisa Lambert: One of the first things is a mindset shift, recognizing that yes, this sector is still in its nascent stages, but there is an industry that's emerging and we've got to start looking at what that industry needs to mature and thrive, and how to address those needs in a way that keeps pace with the development of the industry.
Canada’s National Quantum Strategy (NQS) was a good starting point, but the commercialization pillar is underdeveloped and urgently needs considerable strengthening. In the two years since its launch, the global quantum landscape has evolved rapidly, with significant technological advancements. Other countries are now making substantial investments in their quantum sectors that far surpass the NQS's $360 million commitment from Budget 2021, which was largely allocated to existing programs.
We must recognize that what brought us to our current position won't secure our lead in the next phase of this global race. There needs to be a shift in mindset to acknowledge that we now have a burgeoning quantum industry, not just a research field. This shift should reflect that significant R&D occurs within companies, not just academic institutions.
To advance Canada's quantum sector, we need pragmatic, tailored solutions that acknowledge our unique position. We can't emulate the US or EU approaches, but we can leverage our strengths.
We need to ensure Canada’s quantum sector has access to the capital needed to get across the valley of death. Early stage capital is important, and so is patient capital at later stages to enable companies to scale and stay Canadian as they do so. We currently have very few vehicles to this effect, and the time to address this is now.
Government procurement is crucial, but our current system isn't optimized for innovative technologies or Canadian startups. This is not just specific to quantum, but something we’re seeing across innovative sectors. While changes to procurement are necessary, they will realistically take time to implement, and we need immediate actions.
That’s why it’s also important to look at other avenues that are crucial to delivering on the promise of quantum technologies. We could implement new commercialization programs to stimulate adoption in the private sector by derisking early adoption of Canadian quantum technologies by Canadian industry. This approach would provide Canadian companies with customers, push product development, and de-risk private investment.
We must also consider the geopolitical aspects of quantum technology. As a dual-use technology with national and economic security implications, understanding and securing the quantum supply chain is critical. We should take strategic action to position Canada as an integral part of the global quantum market, working closely with trusted allies.
By leveraging our quantum expertise, we can significantly contribute to NATO's technological edge. This approach also offers an innovative way to make headway towards honouring Canada's 2% GDP commitment to NATO, aligning our defense spending with cutting-edge innovation. Furthermore, we should seriously explore joining AUKUS, which can be another pathway to enhancing our quantum capabilities while strengthening our position among key allies. Such partnerships would not only advance our quantum sector but also reinforce Canada's role in shaping global security and technological innovation, ensuring we remain at the forefront of this critical field.
By taking these steps, we can ensure Canada remains a leader in the quantum revolution, leveraging our unique strengths and addressing our specific challenges. Moreover, we can bolster our international standing, contribute meaningfully to global security alliances, and position ourselves at the forefront of strategic technological partnerships. This approach not only advances our quantum sector but also reinforces Canada's role as a key player in shaping the future of global security and technological innovation.
Kyle Briggs: How can Canadian public and private sectors most effectively support quantum companies in addressing all of this? You said what we've done to this point won't get us where we need to go. What do we need to be doing differently going forward?
Lisa Lambert: Now is the time to engage with quantum technologies. We were late with AI, and we can't afford to repeat that mistake. Quantum will be disruptive, and it's challenging to predict its full impact.
Some quantum technologies are already here today, with others progressing more rapidly than many anticipated.
In quantum computing, we're seeing roadmaps converge among major players, with initiatives like DARPA’s Quantum Benchmarking Initiative expected to accelerate progress. It is hard to predict these things, but if current trends continue, we could see business-relevant quantum computers within the next decade, with some experts saying this could be sooner.
I encourage everyone to get curious and start engaging and considering how quantum technologies might impact you. QIC publishes a monthly newsletter called “Quantum Eh?”, is a great resource to stay informed about the sector. Connect with quantum companies to explore potential applications in your industry. QIC can help make introductions to relevant players or we are happy to work with groups to host roundtables to explore this frontier technology (here is a summary of a roundtable with a cross-section of members from the Canadian Chamber of Commerce). What I'm excited about is that quantum offers real opportunities for innovation and to stimulate innovation, not just within the quantum technology companies themselves, but across all industries. Ultimately quantum is a tool that's going to be applied across all different sectors.
In 2025, QIC is hosting QUANTUM NOW, in partnership with Distriq and Québec Quantique. This is going to be Canada’s first industry-led quantum tech forum, and it’s aimed at prospective adopters, policymakers at all levels of government, and investors. It's designed to help people understand and navigate the quantum landscape, giving them a shorthand or heuristic to think about this transformative technology sector as it moves forward, and building connections with Canada’s leading quantum innovators.
I'm proud of Canada's quantum sector, but the story isn't finished. We need help writing the next chapter. Let's bring quantum into broader conversations about innovation, economic growth, and national security. This isn't just about technological advancement; it's about securing Canada's future prosperity and sovereignty in an increasingly complex global landscape. We'd be happy to participate in these crucial discussions, as quantum has the potential to benefit all Canadians while strengthening our nation's economic and security posture.
Kyle Briggs: When you consider recent policy shifts, for example the cuts to Innovative Solutions Canada, the proposed changes to SR&ED, overhaul, and what is looking less and less like an overhaul of IRAP, how do you anticipate these will impact the Canadian quantum ecosystem?
Lisa Lambert: The recent policy shifts are already impacting the quantum ecosystem. Stability and predictability in the policy landscape are crucial for deep tech sectors, especially quantum. Sudden changes or retractions introduce volatility, affecting both companies and investors' confidence.
The cuts to Innovative Solutions Canada (ISC) were particularly challenging, as ISC was part of the National Quantum Strategy's commercialization pillar announced in 2023. This program was crucial as it provided not only non-dilutive capital but also gave companies a customer through government procurement. For quantum companies, this dual benefit was invaluable. Losing ISC means losing both funding and a potential early customer, which is a significant setback for many startups in the sector.
Regarding SR&ED, we've provided input for both consultation rounds (you can view the recommendations developed by a QIC Working Group here and here). It's been a key program for deep tech development in Canada, including quantum, and there are opportunities to modernize it to drive more innovation and long-term value. We're optimistic about potential improvements, such as factoring in IP and equipment purchases.
IRAP has some great people working on quantum, and we're grateful for their support and thoughtfulness in considering the role IRAP can play in advancing this critical sector.
The announcement and subsequent withdrawal of the Canadian Innovation Corporation (CIC) was disappointing. There was considerable excitement and anticipation surrounding this initiative, as it was designed to address critical gaps in our innovation ecosystem. I found Danny Breznitz's input in shaping this initiative to be particularly insightful and on point. CIC was expected to address current gaps, which now remain open. It's crucial that we find alternative ways to address these gaps promptly. The quantum sector, along with other deep tech areas, requires consistent, thoughtful support to maintain Canada's position as a global innovator and to translate our research strengths into economic advantages.
I firmly believe that modern economies will be built on advanced technologies, with quantum being a prime area of opportunity. Canada has been a frontrunner in research and early-stage development. Our challenge now is to avoid self-imposed obstacles and transform our quantum strengths and capabilities into engines of prosperity for our nation. We must address the issues that are getting in the way of effectively leveraging our quantum innovations to drive economic growth, create high-value jobs, and secure Canada's position as a global leader in this critical sector.
Key Takeaways
Canadian leadership in quantum technologies holds key lessons that generalize to other sectors of deep tech. It did not happen spontaneously, but rather represents the combination of four key ingredients: a deep pool of highly trained talent, the existence of infrastructure to enable that talent to push the research forward, visionary leadership that was willing to make a bet that may not pay off during their tenure, and a catalyst event that seeded what became a virtuous cycle of innovation. The catalyst in this case was a series of investments made in quantum technologies in the Waterloo region that led to the establishment of the Perimeter Institute. This investment was made decades ago, at a stage when quantum technologies generally were still firmly in the realm of academic research.
In the case of quantum technologies, it was the vision of an individual who made a massive philanthropic investment that set Canada on its path to dominance. However, relying on once-in-a-century good will is not a valid strategy for deep tech development. The good news is that there is no obvious reason that the catalyst needs to come from a private individual. Examples abound globally of similar virtuous cycles of innovation catalyzed by public sector investments. If Canada hopes to achieve a similar position of leadership in other deep tech sectors, our polocy makers will need to step up and provide that catalyst deliberately.
The failure of the Canadian public sector to learn this lesson leads to other challenges that were identified in the interview: not only are we the world’s source of intellectual property, but we are the world’s schoolhouse, training and exporting a steady stream of world-class talent.
Canada has many sectors that have three of the four key ingredients: deep talent pools, world-class research infrastructure, and world-leading minds are common across many deep tech sectors in Canada, but without a national vision for what results from these raw ingredients to focus them toward a long-term goal, Canada rarely gets past the stage of filing academic IP. What separates these sectors from quantum is the catalyst, the visionary investment made before the potential impact was obvious. Without these in other sectors, Canada will continue its century-long trend of being an IP and talent republic, content to produce innovative technologies and brilliant researchers on behalf of the rest of the world.
Also of note in the quantum story is the scale of investment required. While Mike Lazaridis’ investment and subsequent public sector follow-on was a massive expenditure for an individual, it was relatively small (on the scale of hundreds of millions) relative to the amounts that are being poured into AI today. Canada’s budget 2024 has allocated $2.4B for AI infrastructure investments, nearly an order of magnitude more than what was required to set Canada on the path toward global quantum dominance, but given the decades-long delay in committing relative to the same point in quantum development, Canada’s AI investments will barely move the needle, representing less than half of that which will be spent by a single American company this year (OpenAI is projected to spend $5B). In spite of the fact that ISED proudly boasts that Canada has 10% of the world’s top AI talent, Canada may have missed its opportunity to be relevant in AI by many years due to underinvestment in the early stages.
In other words: waiting until we are sure that a technology will work means missing the opportunity to benefit. This is especially true for a small economy like Canada. While giants like the US and China can afford to come late to the party by simply throwing vast resources at the problem, we cannot. On the other hand, investing early means that a much smaller investment is needed to achieve impact. If Canada hopes to benefit from its research excellence, the public sector needs to embrace risk and invest in technologies when they are still in their nascent stages, trading the uncertainty over which bets will pay off for the opportunity to be first mover in those that do, to ensure that talent, infrastructure, and vision are concentrated here before the rest of the world catches up.
Finally, it is necessary to stay the course, and recognize that the level and form of support needed is not a static thing across the lifecycle of a deep tech sector. While Canada leads in quantum technologies for now, the hard work of Quantum Industry Canada and other private sector supports for early commercialization efforts of quantum and quantum-enabling technologies remains essential in carrying Canada across the finish line. From the recent policy-induced whiplash relating to procurement cuts, delays to the CIC, and Canada’s underinvestment relative to China, more directly comparable countries like Netherlands, and even Singapore, it is likely that without this hard work, our public sector innovation leaders would drop this ball, too.
The silver lining is that challenge is also opportunity. While Canada may well have missed its chance in AI, the productivity of our national research machine means that technologies abound that could be the next disruptor. The last few decades of quantum technologies provide a clear blueprint for how to achieve deep tech dominance that can be readily replicated in other sectors, while the current trajectory of Canada’s AI development is well on its way to being a blueprint for how to lose it. It is incumbent on Canadian policymakers to learn from these examples to finally address Canada’s failures in translating research excellence into long-term economic impact.