2018

Q-campus Background study

IN SUPPORT OF “BUILDING A Q-CAMPUS - REALISING A QUANTUM ECOSYSTEM IN DELFT”

Reading guide 3

1. Sketch of Quantum Technology 4 Quantum Technology - a paradigm shift 4 Quantum Computing 7 Quantum Simulators 10 Quantum Communication and Quantum Internet 10 Quantum Software 11 Quantum Sensing and Metrology 12

2. Industry Expectations 13 The Universal Quantum Computing Value Chain 13 Dynamics of the value chain for Universal Quantum Computers and Quatum Communication 14 Business models 16 Expectations 16 Investments 18 Applications of Quantum Technology in industry 21

3. Dutch Quantum Ecosystem Overview 23 Knowledge Development 23 Talent 26 Financing 28 Networks 30 Leadership 32 Services and infrastructure 33 Demand 33

4. Quantum Start-up Incubation 36 Start-ups in a campus environment 36 Start-up incubation 37 Start-up incubation at Q-campus 38 Sources 39

5. Campus environment case studies 41

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WaterCampus Leeuwarden 41 Leiden Bio Science Park 46 Chemelot 48 High Tech Campus Eindhoven 50 Sources 51

Appendices 52 Appendix A1: Qubit Roadmaps 52 Appendix A2: Progress in number of qubits 53 Appendix A3: Method used for selection within EU funding data 54 Appendix A4: Selected Dutch QT related master programmes 55

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Reading guide

This document is meant as a background study for the report “Building a Q-Campus - Realising a Quantum ecosystem in Delft”. It provides:

● necessary knowledge to interpret the progress in quantum technologies (1. Sketch of Quantum Technology), ● the industry expectations and the expected value chain of these technologies (2. Industry expectations), ● and an in depth analysis of the Dutch quantum technology ecosystem and its readiness for further investment (3. Dutch quantum ecosystem overview). These chapters make up the groundwork for the investment decisions and business case laid out in the “Building a Q-Campus” report. Additionally, an expert opinion is provided on start-up incubation with regards to quantum technology (4. Quantum start-up incubation). An overview of other campus environments in the Netherlands serves as the basis for the campus design in the final report and the relevant research has been added here (5. Campus environment case studies).

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1. Sketch of Quantum Technology

Quantum Technology - a paradigm shift Since their invention, conventional computers store data in transistors that function as on/off switches called bits. A multitude of bits on a computer processor form a memory which can be accessed by programmes to perform a calculation. Computer processes have become increasingly more powerful as chip costs have decreased according to the famous Moore's law, which predicts that the cost and size per transistor halves roughly every 18 months. However, in recent years it appears Moore's law is becoming more difficult to achieve. The size of the transistor is getting so small that Moore's Law is likely to reach a limit1. As the limits of bit-based processors come into view, a new

potential to process information presents itself in quantum mechanics.

Engineering / Control

ing

Software / Theory

Sensing /

Metrology

Simulation Comput

Communication Education / Training

Basic Science Quantum Technology

Figure 1: Structure of the Quantum Technology field as presented in the Quantum Technology Flagship report by the European Commission High Level Steering Committee (28-06-2017) Exploiting the quantum mechanical principles of ‘superposition’ and ‘entanglement’ it is possible to build quantum bits (qubits). A qubit that can be in two states at the same time and the states of multiple bits can be manipulated simultaneously. This allows for an enormous growth in processing information compared to classical computers, as two qubits can be in four states and three qubits can be in eight states, leading to an exponentially large system. Taking advantage of these principles, a quantum computer would therefore be able to solve certain problems that would be impossible with classical computers. The ability to harness superposition and entanglement characteristics thus becomes the basis for the development of Quantum Technology. Within the field of Quantum Technology, four application areas were defined in the Quantum Technology Flagship project2. Next to quantum computing, quantum communication and internet and quantum sensing techniques are important in the coming years. For all four areas, development of software and hardware are crucial ingredients. This factbook

1 Morgan Stanley (2017) Quantum computing – weird science or the next computing revolution?, New York, Morgan Stanley Research.

2 High Level Steering Committee (2017) Quantum Technologies Flagship Final Report

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distinguishes between ‘Quantum Computing’ and broader underlying ‘Quantum Technology’. Where the primary focus will be on Quantum Computing, it also explores themes of the consequences of other applications of Quantum Technology. European Quantum Technology Roadmap The Quantum Technology Flagship project defines goals within the four fields of Quantum Technology. In Figure 1 the goals are specified per field. This Flagship project represents a strategic investment aimed at enabling Europe to lead quantum technologies, building on its scientific research, on an established and growing interest from major industries, and on ecosystems of high-tech SMEs. The High-Level Steering Committee of the project has determined milestones which entail the quantum technology field containing every roadmap for the next 10 years3.

3 High Level Steering Committee (2017) Quantum Technologies Flagship Final Report

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Quantum Computing

•3 years: demonstrations will be shown of quantum processors with more than 50 qubits. The most important features to reach for platforms is quantum supremacy with an architecture where unit cells can be scaled and mass manufactured. Experimental devices will be ready for >50 qubits for quantum simulations. •6 years: logical qubits will outperform physical qubits and infrastructure of hundreds of qubits will be developed. The first field tests in data centres will be deployed. More algorithms and applications are developed. Quantum supremacy will be established in solving important problems in science. Demonstrations of quantum optimisations are ready. •10 years: demonstrations of fault tolerant implementations of relevant algorithm should arise in architectures of scale. Technology will be ready to deploy 100's of qubits which can be operated by users at data centres or other non-research parties. Quantum simulators beyond supercomputer capability are used to solve modelling problems in material science and AI.

Quantum Simulation

•3 years: experimental devices with certified quantum advantage on the scale of more than 50 (processor) or 500 (lattices) individual coupled quantum systems; •6 years: quantum advantage in solving important problems in science (e.g. quantum magnetism) and demonstration of quantum optimisation (e.g. via quantum annealing); •10 years: prototype quantum simulators solving problems beyond supercomputer capability, including in quantum chemistry, the design of new materials, and optimisation problems such as in the context of artificial intelligence.

Quantum Communication

•3 years: development and certification of Quantum Key Distribution devices and systems, addressing high-speed, high-TRL, low deployment costs, novel protocols and applications for network operation, as well as the development of systems and protocols for quantum repeaters, quantum memories and long-distance communication; •6 years: cost-effective and scalable devices and systems for intercity and intra-city networks demonstrating end-user-inspired applications, as well as demonstration of scalable solutions for quantum networks connecting devices and systems, e.g. quantum sensors or processors; •10 years: development of autonomous metro-area, long distance (>1000km) and entanglement-based networks, a "quantum Internet", as well as protocols exploiting the novel properties that quantum communication offers.

Quantum Sensing and Metrology

•3 years: quantum sensors, imaging systems and quantum standards that employ single qubit coherence and outperform classical counterparts (resolution, stability) demonstrated in laboratory environment; •6 years: integrated quantum sensors, imaging systems and metrology standards at the prototype level, with first commercial products brought to the market, as well as laboratory demonstrations of entanglement enhanced technologies in sensing; •10 years: transition from prototypes to commercially available devices.

Figure 1: EU roadmap goals for Quantum Technology (taken from High-Level Steering Committee (2017) Quantum Technologies Flagship Final Report, image: Birch)

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Quantum Computing The most promising and game-changing application of Quantum Technology is Quantum Computing. It encompasses a variety of different technologies in and of itself. The main challenge in building quantum computers is decoherence, the fact that quantum particles change state too fast to observe and use in calculations.4 Below we will describe the two main developments of quantum computing. Task specific Quantum Computers In the field of ‘quantum annealers’, devices are built with qubits for solving specific problems by modelling the problem in such a way that it is equivalent to finding the lowest energy point in a landscape. Quantum annealers can be very powerful in solving this certain type of optimisation problems,. To date, D-wave Systems is the only company building commercial machines that may function as quantum annealers. These systems contain up to 2.048 qubits. The company has sold the machine to Lockheed Martin and has partnered with Google and NASA to solve hard optimisation problems.5 The increase of investments and number of qubits are displayed in Figure 2.

D-wave Investment Rounds & Qubit results $200 2.500 $180 $160 2.000 $140 $120 1.500 $100

$80 1.000 Qubits $60 $40 500

$20 Investments Investments in Million USD $- - 2011 2012 2013 2014 2015 2016 2017

Cumulative previous investments Investment Qubits

Figure 2: D-Wave Investments and Qubit results (source: Crunchbase, image: Birch) The Quantum Enhanced Optimization (QEO) Research Program by iARPA (The Intelligence Advanced Research Projects Activity of the US) also investigates quantum annealing and has started a trajectory to realise 100+ Qubits for annealing systems.6 The QEO goal is to realise a basis of design for application-scale quantum annealers providing a factor 10.000 speed-up over classical methods. The

4 M. Schlosshauer (2004) Decoherence, the measurement problem, and interpretations of quantum mechanics. Rev. Mod. Phys. 76, 1267–1305.

5 Thomson, C. (2014) The Revolutionary Quantum Computer That May Not Be Quantum At All, Wired, May 20th 2014.

6 Quantum Computing Report (2017), Qubit Count Scorecard. https://quantumcomputingreport.com/scorecards/qubit-count/, accessed on 2-1-2018.

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program funds several public and private research initiatives to reach this goal and is led by the University of Southern California.7 Universal Quantum Computers While task specific quantum computers only have the ability to solve specific problems, a universal quantum computer has the potential to compute a variety of complex problems. Therefore, this technology is in theory much more interesting to pursue. A universal quantum computer however, is harder to develop. Today the first quantum processors are operational and can be experimented with, but scalability and stability are still the main challenges in this field. Qubit platforms To build a universal quantum computer a number of different architectures are possible. These architectures determine how difficult it is to build the system and how many qubits can be interconnected. Research groups tend to focus on one type of architecture and large tech companies have already made their bets on certain types which they think will succeed, by allocating R&D money. The superposition state of a qubit is typically very sensitive to environmental changes. In general, the greatest barrier in developing architecture is overcoming this sensitivity. From a hardware point of view, these errors can possibly be reduced to a certain limit by solving different problems in for instance material properties, fabrication and the connection between quantum elements. From a software point of view, quantum error techniques together with fault-tolerant computing can potentially solve this (hardware) issue. In Figure 3, the most important technologies are described with their main characteristics, advantages and disadvantages 8 9 10. Quantum supremacy Currently, an important goal is to achieve 'quantum supremacy'. Quantum supremacy is the point where quantum devices can perform a computational task that lies outside the capacities of classical computers. Together with the University of California, Google states that quantum supremacy is reached at around 50 logical qubits system11. This counts for example for sampling problems. The EU defines quantum supremacy as a system of 100 robust qubits12. It is key to note however, that although the number of qubits is important, the values above assume that the quality of the qubits is high, that is to say that the time the quantum information can be maintained is long and the noise on gate operations is low.

7 iARPA (2017), Quantum Enhanced Optimization (QEO), Research Programs, https://www.iarpa.gov/index.php/research-programs/qeo/, accessed on 2-1- 2018.

8 The full descriptions can be found in Appendix A2

9 Morgan Stanley (2017) Quantum computing – weird science or the next computing revolution?, New York, Morgan Stanley Research.

10 Acín, A., Bloch, I., Buhrman, H., Calarco, T., Eichler, C., Eisert, J., & Kuhr, S. (2017). The European Quantum Technologies Roadmap. arXiv preprint arXiv:1712.03773.

11 Neill, C., et al. (2017). A blueprint for demonstrating quantum supremacy with superconducting qubits. arXiv preprint arXiv:1709.06678.,

12 Acín, A., Bloch, I., Buhrman, H., Calarco, T., Eichler, C., Eisert, J., ... & Kuhr, S. (2017). The European Quantum Technologies Roadmap. arXiv preprint arXiv:1712.03773.

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The key point here is that supremacy is already reached with an amount of qualitatively good qubits which is relatively small when compared to classical computers with many millions of bits, and demonstration systems are already being pursued. We are approaching this point quickly, which is why the technology is gaining momentum and interest from governments and private parties.

Superconducting Topological Semiconductor Trapped Ions qubits qubits spin qubits

Resonance Specialised Nanoscale devices microwave circuits Electromagnetic topological space trapping electrons Working embedding a field confining ions for qubits using e.g. and using spin as principle Josephson tunnel Majorana particles qubit junction

Particles observed, Most mature, Medium scale large investments Two-qubit Current commercially systems have been but first qubit is yet algorithms realized status available systems realised to be built

Fabrication Scalability due to Proof of concept techniques for Qubit uniformity Barriers noise restrictions working qubit qubits

Research institutes, Research Institutes, Research Institutes, IBM, Intel, Google, Research institutes, Key IonQ, Alpine QT, Microsoft, QuTech, QuTech, Rigetti, Intel, QuTech actors* Quantum Factory Nokia Bell Labs QDev

* list not exhaustive

Figure 3: Team analysis on the Qubit roadmaps, for more information see Appendix A1. The approaches in Figure 3 are considered to have the most potential and research groups receive funding to develop them further. Companies are either backing one or multiple of these technologies and it is generally expected that in the next decade applications for commercial systems will be viable with one of these approaches13. Development of chips with an increasing number of physical qubits is an ongoing race between mostly large high-tech companies, including Google, Intel-QuTech collaboration, IBM and Microsoft and start- ups as Rigetti. The quality of qubits on the fabricated chips is not demonstrated in all cases.

13 Other technological roadmaps include Neutral Atoms,, Photonic Qubits and NV Diamnod Qubits. QuTech is active in the NV Diamond roadmap, using this technology for Quantum Networks.

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Quantum Simulators Simulating quantum mechanical systems is known to be a difficult computational problem. When attempting to solve these problems, it is a possibility to use a well-controlled quantum system to study a less-controlled or developed quantum system, known as quantum simulation. Quantum simulators can be regarded as analog quantum computers and permit the study of (novel) quantum systems that are difficult to study in the laboratory, and which are essentially impossible to solve on classical computers. A quantum simulator is designed to explore specific problems, for instance in quantum chemistry and bio-molecular physics, where there are important open questions related to energy transport in photosynthetic complexes and catalytic cycles of high biological interest. The development and design of quantum simulation algorithms still requires a big effort, not only to function for current quantum hardware systems but also to incorporate the current knowledge on classical simulation algorithms on quantum systems.

Quantum Communication and Quantum Internet Quantum Communication Another major application of Quantum Technology is through quantum communication, basically the transfer of a quantum state from one place to another. Several applications of quantum communication are already known, for example, to secure communication, synchronize clocks, also perform secure delegated computations on quantum servers in the cloud. Currently, the security of classical communication is provided by encryption through classical computers. Some widely used encryption types could be broken by future Quantum Computers. Quantum communication is provably secure even if the attacker has a quantum computer now or in the future - a feat that has been mathematically proven to be impossible for any classical encryption scheme. Quantum Internet If two or more quantum computers are optically connected to each other, a quantum computer network can be formed.By being connected to this network, qubits can be exchanged by the quantum network nodes. Like classical networks, a quantum network features different elements:

• End nodes – quantum computers connected to the network on which applications are run. The demands for such quantum computers to accomplish useful tasks is thereby very modest compared to quantum computing algorithms: many known applications such as for example secure communication only require quantum computers capable of preparing and measuring one single qubit. The reason why already one qubit per network node allows tasks that are impossible to accomplish on a classical network is due to the fact that quantum network protocols gain their power from quantum entanglement for which two qubits – one at each end point – is already sufficient. In contrast, a quantum computer needs more qubits than can be simulated on a classical one in order to do something useful.

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• Repeaters – the task of a quantum repeater is so transmit qubits over long distances. Since quantum information cannot be cloned, conventional repeaters cannot be used and quantum repeaters use genuinely new technology. • Network technology such as for example low loss switches to maximize use of existing network infrastrucutre. These are not inherently different than classical optical switches, but less losses are desirable to achieve a better performance due to the fact that qubits are often communicated using single photons which are easily lost. Networks at short distances form an avenue to scaling quantum computers: As the number of qubits of one computing system is limited at this point, choosing a modular approach can help researchers and engineers scale up quantum computing systems. When one or more quantum computers forming the network are geographically apart, one can speak of Quantum Internet. A quantum-computing cloud that is accessible through the Quantum Internet is an ultimate combination that would provide the possibility to perform secure quantum computing ‘in the cloud’. 14

Quantum Internet is envisioned to be used in for example15:

● Secure communication with the help of quantum key distribution ● Clock synchronization ● Combining distant telescopes to form one much more powerful telescope ● Advantages for classic problems in distributed systems such as achieving consensus and agreement about data distributed in the cloud ● Sending exponentially fewer qubits than classical bits to solve some distributed computing problems ● Secure access to a powerful quantum computer using only very simple “desktop” quantum devices ● Combining small quantum computers to form a quantum data center

One of the big challenges to Quantum Internet is making long distance communication possible. At this point, long distance communication is hindered by signal loss and decoherence (loss of quantum coherence) caused by the transport medium of for instance an optical fiber. For classical signals, an amplifier can be used to enhance signal, but as qubits cannot be copied, this is not possible in quantum communication. The technology that is being developed to overcome this challenge is called a quantum repeater and is often based on the principle of quantum teleportation. Quantum Software Crucial to the operation and success of quantum computers is not only that the engineering challenges are overcome but also that specialised software is developed and tested that functions on a quantum computer. Quantum software requires an entirely new approach compared to conventional computers. New protocols, algorithms and applications will have to be developed in order to exploit the power of future quantum computers and global quantum networks.

14 https://www.nature.com/articles/d41586-018-01835-3

15 https://labs.ripe.net/Members/becha/introduction-to-the-quantum-internet

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Next to application software both the development of the quantum computer and quantum networks require research into new methods to efficiently control and operate such systems. Quantum Cryptography Generally speaking, in cryptology, a cryptosystem (also cryptographic algorithm) combines a message with additional information, a key, to produce a cryptogram. If this cryptogram cannot be unlocked without the key, it is secure. When this key is the same for both encryption and decryption, the system is referred to as a symmetrical (secret-key) cryptosystem. When the key for two communicating users are different, it is called asymmetrical (public-key). Quantum cryptography is the science using quantum mechanical properties to perform cryptographic tasks. Quantum Key Distribution Quantum Key Distribution (QKD) is an example of quantum cryptography that could help symmetric cryptography. QKD is used to produce the secret key for both communication partners and not to send a message, this can be done through a standard communication channel, e.g. an optical fiber. An important property of QKD is that the two communicating users can detect a possible third eavesdropping partner as this third partner disturbs the quantum system when measuring it, in this case, the key will not be produced. Thus, the security is guaranteed by physical principles, not mathematical complexity. Post-quantum cryptography Post-quantum cryptography is the science of cryptographic algorithms that should be secure against intrusion by a quantum computer, not necessarily using quantum mechanical properties. This is very important as popular encryption techniques as for example ECC and RSA (public-key techniques), used to secure modern communication, can be broken by using Shor’s algorithm on a powerful quantum computer, once it would exist. Fortunately, there are also multiple cryptosystems that are believed to resist Shor’s algorithm and thus part of post-quantum cryptography such as Hash-based cryptography, Code-based cryptography and Lattice-based cryptography.

Quantum Sensing and Metrology Quantum Sensing and Metrology is a technique that either uses a quantum system, quantum coherence or quantum entanglement to measure a physical quantity. To certain extent, quantum sensing exploits the weakness of quantum systems: quantum sensors are highly sensitive to their environment. What this sensitivity is party relies on its reaction to external parameters. For a spin qubit, this could for example be its response to an external magnetic field. Furthermore, the sensitivity relies on the ‘intrinsic sensitivity’ of the quantum sensor. The quantum sensor should preferably respond strongly to desired signals but not to unwanted noise signals, a tricky dispute. 16 Examples of quantum sensing systems that are used and investigated are neutral atoms, trapped ions, Rydberg atoms, atomic clocks, solid-state spins and superconducting circuits.

16 Quantum Sensing, C.L. Degen, F. Reinhard and P. Cappellaro. Rev. Mod. Phys. 89, 035002

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2. Industry Expectations

The Universal Quantum Computing Value Chain Current developers of Quantum Computing Technology follow a model that reflects that of regular supercomputers. The hardware in development is expected to provide supercomputer-like devices that can be used as a service by others to do calculations. This requires software to operate the quantum computer and run applications on it. Thus, a potential value chain for quantum computing will have a similar structure to the value chain for conventional supercomputing. Even so, it is possible that more novel applications of quantum computers are still to be discovered that will alter the structure of this value chain. This is congruent with the outlook on the use of Quantum Computing and Communication that is shared among most experts. Quantum Computing is expected to become relevant in the next 10 years, within a niche market for specific problems. This means that Quantum Computers gain a status equivalent to supercomputers, with a low number of devices used as a service by corporations. Software developed for these computers will likely be tailored to solving industry-specific challenges. Quantum Communication offers usable technology in a number of phases: point-to-point and short distance technology to perform quantum key distribution is already commercially available now. A next step in the next five years can be metropolitan networks in which several clients are connected to a central hub in a star-shaped network. This allows anyone connected to the hub to run elementary quantum network applications such as quantum key distribution for secure communication or password identification. Such star shaped networks can maximize the use of existing infrastructure of standard telecom fibers for quantum communication. In parallel, further development of end nodes can bring more complex quantum network applications within reach at short distances. Larger scale networks at pan European distances are expected to become feasible after 10 years. This is a current assessment based on the activities of developers and the proposed architecture of Quantum Computers. It may be subject to change as the proposition of Quantum Computers matures.

Hardware •Qubit memory Operating QC Software Equipment and and processor mainframe or •operating system component manufacturing •System datacentre •applications architecture and protocols

Figure 4: Stylised QC Value Chain (Team analysis based on Rodney van Meter and Clare Horsman: A blueprint for Building a Quantum Computer, October 2013; Cody Jones et al, Layered architecture for quantum computing, September 2012. Image: Birch)

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Each of the activities has specific challenges outlined below. The most likely expected scenario is that future computing will be a hybrid between quantum and conventional computing and this value chain will run parallel to, as well as overlap, with the value chain for conventional computing. Similarly, for quantum communications a value chain akin to the conventional internet is anticipated involving both hardware and software development, infrastructure providers as well as online service providers. Challenges:

● Qubit memory and processor: the development of technical building blocks for the quantum computer, that is a functioning two level qubit, storage and gate technologies and interconnection technologies. ● Quantum repeater: the development of a quantum repeater to transmit qubits over long distances ● Quantum computer and network architecture: the design of the interconnection and communication between blocks in order to enable fast processing, and routing, and a setup for error correction. This requires not only hardware but also software developments in error correction, fault-tolerant computing and protocols for the new architecture. ● Quantum programming: tools for compiling and methods for debugging programs, verification and testing of Quantum computed results. ● Application algorithms and protocols algorithms and protocols that leverage some essential feature of quantum computation and communication such as quantum superposition or quantum entanglement.17 Software and algorithms that enable quantum internet, perform simulation of quantum systems, perform machine learning and can be used in cryptography. Functioning quantum software is also a prerequisite for the production and operation of hardware and architecture and thus permeates the entire value chain.

Dynamics of the value chain for Universal Quantum Computers and Quatum Communication The following provides an overview of the dynamics for each of the links in the value chain and an overview of private organisations currently active in it.

Key players (not Trends Risks & Opportunities exhaustive)

Equipment and Specialised suppliers in Suppliers are Supply chain is not yet developed or components cryogenic devices and focused on better standardised, every device poses other supporting solutions to the enormous engineering challenges. engineering noise problem, which results in a ● BlueFors Cryogenics competitive ● Oxford Instruments advantage. ● Montana Instruments

17 McKinsey commissioned by Ministry of Economic Affairs (2015), Global development of Quantum Technology Market. Internal document

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● Agilent Technologies ● Leiden Cryogenics ● Delft Circuits ● Rohde & Schwarz ● Zurich Instruments ● Anyon ● SingleQuantum ● Keysight ● Q-devil

Hardware Capital intensive Pushing for Hard technology: defining a new manufacturing organisations vertical arena and racing for a dominant integration with design, the capabilities do not exist ● Qubits ● Google architecture and yet. Possible winner takes all dynamic. ● Architecture ● IBM software. ● Intel A lack of standards, incompatible ● Microsoft hardware, constant change, and ● Rigetti uncertain roadmaps. ● NTT Scaling of architecture will be challenging and can cause a shift in production locations.

Mainframe/data ● Alcatel-Lucent Pushing towards centre ● Bell Labs first deployed ● MagiQ demonstrator ● IDQ systems ● Nokia ● SK Telecom ● SurfSara

Software Mostly small-scale start- Experiments Large players (hardware development ups and tech giants active charting the manufacturers) will secure position in hardware development capabilities of with standard setting and IP. ● Operating ● 1Qbit quantum system Challenge: support of one platform ● QXBranch software, in ● applications versus adaptive to multiple platforms ● Cambridge Quantum operation of a QC, Computing algorithms to run Room for diverse set of players ● Qbitlogic on a QC and (industry specific small players or ● QCWare accessing a QC software giants with specialised ● Rigetti through the division) ● Microsoft (Q# cloud. language) ● Google (Quantum A.I. research & cloud) ● IBM (QISKit) ● Zapata ● Qu & Co

Table 1: Team Analysis based on statements by the Ministry of Economic Affairs, Rigetti, Quantum Computing Report et al.

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Business models Based on this value chain and industry analysis there are several business models imaginable that make use of quantum computing18.

● Platform Supplier: will provide a quantum computer, access to it over the cloud, software to program it and other tools or training. Clients are thus able to run programs of their own design. IBM and D-Wave are currently using this business model and other manufacturers of quantum computers envision this as their future business model. ● Vertical Market Specialist: will provide training tailored to a specific area, combining quantum knowledge with industry expertise. Example today is QXBranch which works predominantly for finance and insurance markets. ● Component Supplier: will supply the necessary equipment and tools for building Quantum Computers. There is an infrastructure of companies that are taking this component approach. This includes dilution refrigerator suppliers like Bluefors, suppliers of certain specialized waveform generators, photonics, and measurement devices like Zurich Instruments, and software providers like QCWare. Some developers of quantum computing processing chips may also want to take this approach rather than building the full machine. ● Quantum Under the Hood: will use a quantum computer as a means to offer a service for an end application. For example, a company may offer a cloud-based machine learning or computational chemistry, drug discovery, or logistics optimization service that uses quantum computing. This requires development of tailored algorithms.

Expectations The value added in each segment of the value chain is expected to be greater the more the technology advances into software and applications, similar to classical computing. The building of quantum hardware will provide engineering challenges with opportunities for high-tech companies (similar to for instance ASML or NXP for classical computing chips). In designing quantum system architecture, software and algorithms, the diversity of possible applications may be large and there is more room for both start-ups and established organisations to foray into designing products and services that use a quantum computer as part of the business model.

18 Based on the analysis by the Quantum Computing Report (2017). How to Make Money in Quantum – Four Basic Business Models, December 14th 2017, https://quantumcomputingreport.com/, accessed on 4-1-2018.

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Quantum software & algorithms

Quantum system architecture

Quantum computer and device manufacturing

Qubit assembly and integration

Figure 5: stylised representation of value added differences between value chain activities Another expectation that is a consequence of the development of the quantum computer is the multitude of ‘spinoffs’ based on quantum technology that will find applications in other industries. Developing quantum components and devices for the quantum computer will also lead to advances in other areas. A roadmap for the expected spinoffs has been drawn up by the UK Quantum Technologies programme19 . This roadmap is independent from the EU Flagship roadmaps.

15-20 years 10-20 years •Quantum computer co- •Off the shelf Q- processor in sensors small scale 5-10 years •Pan European computers. •Quantum Quantum components for Networks industry 0-5 years •Quantum crypto •Quantum sensors •Quantum based •Components •Quantum navigation and equipment processor •Quantum key for research networks at short satellite •Quantum key distances communication point-point •Imaging •Cloud based QC links •First intractable •Metropolitan problems solved quantum through QC networks

Figure 6: expected spinoffs in quantum technologies, based on the UK roadmap, not exhaustive, image: Birch The collective value of these spinoffs is estimated to rise to between 280 million and 2.8 billion for the UK alone, which gives an indication of the possible worldwide value.

19 UK National Quantum Technologies Programme, 2015, A roadmap for quantum technologies in the UK, London, Innovate UK and the Engineering and Physical Sciences Research Council on behalf of the Quantum Technologies Strategic Advisory Board.

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Yearly market size quantum technologies (for the UK) 3.000

2.500 2.800 2.420 2.000

1.500

1.000 840 500 520

Market size in Millionpounds 240 280 0 40 80 0-5 years 5-10 years 10-15 years 15 - 20 years Prediction timescale

Figure 7: yearly market size estimates for quantum technologies based on the UK roadmap. Image: Birch. Investments According to The Economist, there is an estimated yearly budget of $1,5 billion in public funding dedicated to quantum computing in the coming years, of which $550 million is spent in the European Union and $27 million in the Netherlands20. In 2018 China announced a $10 billion National Laboratory for Quantum Information Sciences. Aside from public funding, quantum computing has attracted significant investments from the private sector, both in the form of venture capital and more conventional company investment from large tech players. Several large investments by corporate technology companies have been made public. Examples are:

● IBM has incorporated quantum computing in a large investment program for 5 years, which takes a part of $3 billion in research investments made in “post-silicon” microchips (2014). ● Investment by Intel in Qutech for compound superconducting and semiconductor qubits: $50 million (2015). ● Alibaba invests $15 billion to set up 7 quantum computing labs worldwide, following up on $23 million from 201521. Large private companies such as Google (Alphabet) and Microsoft keep investments in Quantum Computing undisclosed in order to protect their competitive advantage. However, an investigation of numerous start-ups in quantum technology reveals that interest in the field is exponentially rising. Several recent funding examples are:

● Trapped ion qubit producer IonQ has recently raised $22 million 22.

20 Estimates are from 2016 over 2013-2015.

21 A. van der Steen, RVO letter, (2015) Alibaba Group invests in joint quantum computing laboratory

22 https://www.prnewswire.com/news-releases/ionq-raises-20m-series-b-round-led-by-nea-gv-to-advance-quantum-computing-for-commercial-applications- 300494456.html viewed 19-01-2018

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● Quantum computer developer Rigetti obtained $64 million in a second round of investments (2017)23. ● Quantum cryptography developer ID Quantique announced a strategic investment plan by SK Telecom of $65 million (2018)24. The size and behaviour of the companies involved suggest that financial requirements are not the bottleneck in the development. They are able to provide the financial means and because of the high stakes there is a reasonable chance that any investments necessary for the development will be covered, regardless of the price. Through these investments, tech companies appear to be competing in a rat race to be the first to acquire a certain number of qubits or display quantum supremacy. For a larger overview of companies with significant investment in Quantum Computing see the table in Appendix A2. Surveying ~60 start-ups in Quantum Technology, we found 18 companies that had (partially) disclosed funding information, as seen in Figure 8. In 2017, Quantum start-ups attracted a total of $179 million in disclosed funding, see Figure 9. It gives an indication of the rising interest in different fields of Quantum Technology and leads us to believe that the actual investments are higher than what is being disclosed. The latest data on 2018 (august) suggests that this will continue, with already almost $27 million invested (currently published), almost entirely in software and communication start-ups using Quantum Technology.

23 https://www.bizjournals.com/sanjose/news/2017/03/28/rigetti-quantum-computing-y-combinator-a16z.htm viewed 19-01-2018

24 https://www.idquantique.com/id-quantique-sk-telecom-join-forces/ viewed 05-04-2018

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Figure 8: Quantum Technology start-ups disclosed funding 2006-2017 (source: Crunchbase).

Quantum annealment Full-stack quantum computing Trapped Ion QC Quantum software Quantum communication Superconducting QC $200.000.000

$150.000.000

$100.000.000

up funding up -

$50.000.000 start

$- 2012 2013 2014 2015 2016 2017

Figure 9: start-up funding divided by company activity (source: Crunchbase)

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Notable is the 571% increase in disclosed funding for quantum start-ups in 2017 compared to 2016. Notable also is the increase in funding for quantum software companies and the investments in start- ups aiming to build their own quantum computer, in direct competition with the projects of IBM, Microsoft and Google. It seems, despite a lack of published investment details, the private sector is willing and able to do sizeable investments in quantum computing, despite the early stage nature of the development.

Applications of Quantum Technology in industry The buzz for quantum technology is largely a consequence of the promise in both performing radically new tasks and optimising time and resource consuming tasks in existing industries. Although predictions for these industries rely entirely on the scientific advances made in quantum technology in the coming decade, some industries have started experimenting and have reached promising results. Below we sketch expectations for the impact of quantum computing and communication in various industries. New applications of Quantum Computing and Communication

Industry Quantum activity Impact Prospect

Chemistry & 100-200 logical qubit Reduction in the costs of Analysts expect that this Pharma quantum computers should molecule development, technology is readily be able to analyse or helping e.g. to reduce the on available before 203028. simulate (parts of) average $ 2 billion cost of Some functional algorithms molecules’ quantum R&D of new drugs26. have already been designed mechanical properties25. Accenture and Biogen with and tested in simulations. This can be used for drug the help of 1Qbit verified Chemical & pharmaceutical development, catalyst that a quantum enabled companies have a large discovery and material method for molecular incentive to adopt design, a good example for comparison was as good or computing power. application would be better than existing fertiliser reaction methods27. calculations (Haber Bosch process).

Material Aircraft, buildings, cars and Drastic reduction in Some of these problems are science other complex structures computation time modelling already being tackled with could be designed with the complex structures in quantum annealers and aid of quantum computers, comparison to regular simulators. Analysts expect simulating the properties of supercomputers. Airbus that this technology is materials at a molecular assesses that it may be able readily available before level. to shorten modelling time of

25 200 logical qubits requires a multitude of physical qubits in a quantum computer. https://www.chemistryworld.com/feature/quantum-chemistry-on- quantum-computers/3007680.article viewed on 05-04-2018

26 https://www2.deloitte.com/uk/en/pages/life-sciences-and-healthcare/articles/measuring-return-from-pharmaceutical-innovation.html, viewed on 14-02- 2018

27 https://www.accenture.com/us-en/success-biogen-quantum-computing-advance-drug-discovery, viewed on 14-02-2018.

28 McKinsey commissioned by Ministry of Economic Affairs (2015), Global development of Quantum Technology Market.

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the aerodynamics of a wing 203030. Aerospace of a new aircraft from seven companies have a large years to several weeks29. incentive to invest in terms of reduction in aircraft development time.

Cyber security Quantum Key Distribution Governments gain access to First ‘code break’ by IBM has & Defence (QKD) allows for non- quantum computers for been proven. The algorithms hackable communication. surveillance, intelligence, to do large scale prime With a quantum computer, communication and national factorisation have been current communication security applications. designed but require becomes vulnerable, Quantum Key Encryption estimated thousands of whereas QKD allows 100% must be used to shield qubits to run. Within 10 safe data transfer. communication from access years technological hurdles by a third party with a should be cleared to create a quantum computer. quantum communication network31.

Communication A Quantum Communication Quantum computers can QuTech aims to build a & internet Network allows for long connect through quantum demonstrator in 2020 that distance communication. It internet to solve larger connects four Dutch cities is expected this requires problems. Exponential into a quantum internet. quantum repeaters that savings in the amount of Within 10 years amplify a quantum signal communication required to technological hurdles should beyond distances of 200 solve certain tasks are be cleared. km32 expected.

Machine Learning and AI Several cross-industry applications for QC's involve the increasing demand for computational power, whilst classical computers are becoming less cost effective in recent times to supply that demand. This is most noticeable in industries where data is a big part of the business, and large amounts of data analysis are done in real time to complement the core activity. This includes sectors such as the transport branch, which uses large amounts of data to build predictive models for traffic flows, the oil & gas branch where companies have live data on thousands of oil wells and any other branch involved in big data computations and optimisations33.

29 http://www.telegraph.co.uk/finance/newsbysector/industry/12065245/Airbuss-quantum-computing-brings-Silicon-Valley-to-the-Welsh-Valleys.html, viewed on 14-02-2018

30 High Level Steering Committee (2017) Quantum Technologies Flagship Final Report

31 High Level Steering Committee (2017) Quantum Technologies Flagship Final Report

32 Centre for Quantum Computation & Communication Technology (20170, Australia, http://www.cqc2t.org/research/QuantumRepeater viewed on 07-03-2018.

33 Morgan Stanley (2017) Quantum computing – weird science or the next computing revolution?, New York, Morgan Stanley Research

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3. Dutch Quantum Ecosystem Overview

Whether the Netherlands is well suited to lead the developments in Quantum Technology through entrepreneurship and economic activity is dependent on the quality of the ecosystem that enables it. We distinguish six crucial elements in this ecosystem. Each of these elements will be described to determine the position of the Netherlands.

Knowledge Infrastructure Talent Financing Networks Leadership Development and services

Figure 10: Conditions for a successful ecosystem, based on Stam & Spigel (2015). Finally, we consider the Dutch industrial position in relation to Quantum Technology, to assess whether industries in the Netherlands are ready to adopt Quantum Technologies and whether the Netherlands can attract investors and companies to the Netherlands in Quantum Technology.

Knowledge Development Knowledge development is defined as the opportunity for scientific advancement and the possibilities this shapes for knowledge transfer.

Knowledge development of Quantum Technology and connected enabling technologies as photonics, material science, nanotechnology, data science takes place at several research locations. The Netherlands has three specialised institutes: QuTech, QuSoft and QT/e, and six universities active in quantum technology: the Delft University of Technology (TU Delft), the University of Amsterdam (UvA), the University of Groningen (UG), the University of Leiden (UL), the Radboud Universiteit Nijmegen (RU) and the University of Twente (UT) where research is performed. Compared to other European countries, the Netherlands has numerous quantum technology research locations across universities within very close proximity to each other, each with their own specialisation. Together, they cover almost all aspects of the current quantum technology landscape, and many of these institutes are at the forefront of their field of specialisation. Dutch quantum technology institutes QuTech (Delft) QuSoft (Amsterdam) QT/e (Eindhoven)

Established 2013; National Icon since 2015 2018 in 2014

Partners ● TU Delft (Faculty of ● Centre for Mathematics ● TU Eindhoven Applied Physics and & Informatics Faculty of Electrical ● UvA Engineering, ● VU

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Mathematics and Computer Science) ● TNO Mission “… develops quantum “… to develop new protocols, This research has the potential technologies based on algorithms and applications to revolutionize a wide range superposition and that can be run on small and of fields, including ICT and the entanglement aimed at medium-sized prototypes of internet, simulation and scalable quantum networks a quantum computer.”35 computation, data science and and quantum computers.”34 security, energy and sensing Four research lines technologies, healthcare, Focus areas ● Quantum simulation and logistics, and materials ● Fault-tolerant Quantum few-qubit applications sciences. Computing ● Quantum information Research topics: ● Quantum Internet and science Networked Computing ● Cryptography in a ● Post-Quantum ● Topological Quantum quantum world Cryptography Computing ● Quantum algorithms ● Physics-based Quantum ● Quantum Software and and complexity Security and Quantum Theory Networks ● Quantum simulators ● Quantum Nanophotonics ● Quantum Materials & Devices

Funding ● TU Delft Funding from UvA’s research ● TU Eindhoven ● TNO priority area Quantum Matter ● Industry funding and Quantum Information ● Public funding (EZ, (QM&QI), a joint effort HTSM TKI, NWO/FOM between four research and STW). institutes of the Faculty of Science. The center is currently hosted and funded by CWI, located at Amsterdam Science Park.

FTE / 2018: 200 fte ● 2018: 60 fte ● 2018: 10 PI’s, 20 PhD’s, 10 postdocs personnel 2023 (goal): 350 fte ● 2022 (goal): 120 fte

34 www.qutech.nl/roadmaps (viewed on 21-02-2018)

35 www.qusoft.org (viewed on 21-02-2018)

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University quantum technology research throughout the Netherlands The following overview is not exhaustive.

Group (G) or Department Mission Known (D) personnel

UvA Quantum Matter and Quantum This research priority area is focused on ± 18 Pi’s Information (D) the experimental and theoretical study of Quantum Matter (QM) and applications in Five UvA research groups are Quantum Information (QI). active in the area of Quantum Matter & Quantum Information, QM & QI works on multi-particle bundling the expertise of three entanglement, topological protection, UvA research institutes quantum cryptography and theory of strongly interacting quantum matter.

TUD Quantum Nanoscience The Quantum Nanoscience Department, 20 PI’s Department (Kavli Institute of from which QuTech was launched in ± 60 PhD’s Nanoscience) (D) 2013, focusses on exploring new quantum devices and technologies using ± 20 Postdocs state-of-the-art nanoscience. In addition to its strong link to QuTech, the department currently has concentrated efforts in the fields of quantum materials, quantum sensing and mechanical quantum technologies.

RUG Quantum Devices (G) The RUG focus is on fundamental studies 1 PI of quantum coherent dynamics in solid- 4 PhD’s state devices.

UL Quantum Matter and Optics (D): The department has three topics, each 12 PI’s with dedicated PI’s:

● Quantum Information ● Quantum Matter ● Quantum Optics UT Quantum transport in matter (G) “The research addresses quantum 1 PI aspects of electronic transport in novel materials and devices. Examples of materials under study are correlated electron systems such as novel superconductors, oxides interfaces, and topological insulators. State-of-the-art materials science and nanotechnology is combined with ultrasensitive transport measurements to reveal novel quasiparticles such as Majorana fermions and magnetic monopoles.”36

36 https://www.utwente.nl/tnw/qtm/ (viewed on 23-02-2018)

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RU Quantum Matter (D) “The goal within this research theme is to 20 PI’s involved in understand, develop, and manipulate programme, not all materials based on collective, or fulltime. emergent quantum effects, envisioned toward new types of functionality”

The recent EU QuantERA call for Quantum research proposals demonstrates the research qualities of these institutes and groups. In a highly competitive call beginning with 91 full proposals, only 26 were awarded funding, of which 9 contained a Dutch partner (see table).

Project Description Dutch Partner

Delft University of QCDA Quantum Code Design and Architecture Technology

Delft University of QUANTOX QUANtum Technologies with 2D-OXides Technology

Delft University of QuaSeRT Optomechanical quantum sensors at room temperature Technology

Delft University of Si QuBus Long-range quantum bus for electron spin qubits in silicon Technology

Topologically protected states in double nanowire superconductor Delft University of SuperTop hybrids Technology

ORQUID ORganic QUantum Integrated Devices Leiden University

Stichting Centrum voor QuantAlgo Quantum algorithms and applications Wiskunde en Informatica

QuompleX Quantum Information Processing with Complex Media University of Twente

Spin-based nanolytics – Turning today’s quantum technology NanoSpin research frontier into tomorrow’s diagnostic devices Wageningen University

Talent Talent describes the present pool of (future) researchers and entrepreneurs in Quantum Technology that have the opportunity to contribute to the ecosystem.

In Figure 11 (left), the number of MSc graduates in studies of direct interest to Quantum Technology. For the selection method, see Appendix A4. The number is displayed for the years 2012-201637. In general, an increasing trend from 2012 to 2016 can be observed in the number of MSc graduates (+27%). In Figure 11 (right) the information on the universities where these MSc graduates (in this

37 data from DUO (2018), https://duo.nl/open_onderwijsdata/

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case in 2016) is added. This overall increasing trend in Quantum Technology related degrees in the Netherlands suggest a suitable talent pool for ecosystem growth.

Total number of MSc MSc graduates in QT related graduates in QT related studies in 2016 studies per year 800 2500 700

2000 600

500 1500 400

1000 300

200 500 100

0 0 2012 2013 2014 2015 2016

Male Female

Figure 11: Left: Nationwide number of MSc graduates over the years in in studies related to Quantum Technology. Right: Distribution of MSc graduates over Dutch universities. Aggregated from DUO data. See Appendix A4 for selection method. Quantum technology education programmes In the QuTech Academy, students from Applied Physics, Electrical Engineering, Computer Science, Mathematics and Embedded Systems are invited to enrol in the Master programme of QuTech Academy. This Master programme consists of MSc courses (1 year) and MSc projects (1 year) providing the students with an excellent education to start their career as a PhD student in QuTech. Furthermore, online courses of top scientists from QuTech are offered via QuTech Academy. In Amsterdam (QuSoft) and Leiden modules are created for education on Quantum Computation, at MSc, BSc and outreach level. The NWO Zwaartekracht program Quantum Software Consortium will coordinate and strengthen education and outreach at QuTech, QuSoft and the University of Leiden.

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Financing Financing comprises the funding opportunities that research and commercialisation efforts in Quantum Technology have gotten in the past and may get in the future.

The recently formed Dutch Government has formulated Quantum Computing as one of the top funding priorities but has not yet disclosed the amount of funding it will dedicate to this subject. In 2015, the Ministry of Economic Affairs committed to financing QuTech in a national partnership, together with several partners for € 135 million over ten years, until 2025.38 All the partners contribute either in kind or in cash to this budget. This budget has been increased to € 145,3 million for 10 years until 2025 by the PPP supplement scheme of the Ministry topping 25% on the private contributions. Within this budget, The Netherlands Organisation for Scientific Research (NWO) finances two industrial partnership programmes in QuTech with Microsoft, both on the subject of Topological quantum computation and Majorana qubits. In total, NWO finances € 20,2 million between 2011 and 2018. NWO has also awarded an € 18.8 million grant from the Gravitation Programme 2016-2017 to the Quantum Software Consortium, a collaboration between scientists from Delft, Leiden and Amsterdam. There is a dedicated consortium in the Netherlands for nanotechnology, NanoNextNL, with a € 250 million programme from 2010 until 2016. The consortium consists of more than one hundred companies, universities, knowledge institutes and university medical centres. One of the roadmaps is “Beyond Moore”, providing funding for nano devices that are relevant to the development of Quantum Computers.39 In an international context, the Netherlands, with the Technical University of Delft primarily, is one of the largest receivers of European Scientific Funding in the field of Quantum Technology. Based on published data40 from the 7th Framework Programme, the European Research Council (ERC) and the Horizon 2020 Programme, it is estimated that the Netherlands has received more than €123 million research funding in 93 projects related to Quantum Technology between 2008 and 2018 (with projects starting in 2018 extending to 2022), seen in Figure 10. The total selection comprises 411 projects with almost € 550 million in funding from FP7 & Horizon 2020, and an additional 43 Dutch projects with € 89 million in funding from the ERC. The method for selection is explained in appendix A3. In the European context the Netherlands has the highest funding intensity per project and organisation and takes in 8,6% of European funding from FP7 & Horizon 2020.

38 the partners are the Ministry of Education, Culture and Research, the University of Delft, The Netherlands Organisation for applied scientific research TNO, The Netherlands Organisation for Scientific Research and the topsector High Tech Systems & Materials. See Partnerconvenant QuTech, https://zoek.officielebekendmakingen.nl/stcrt-2015-15469.html, retrieved at 26-02-2018.

39 http://www.nanonextnl.nl/, retrieved on 07-03-2018.

40 Data downloaded from https://cordis.europa.eu/projects/home_en.html, retrieved on 28-02-2018, and from https://erc.europa.eu/, retrieved on 25-09-2018.

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EU Funding Projects

€ 120 250

€ 100 200 € 80 150 € 60 100 € 40 50

EU Funding EUFunding in M€ € 20

€ - 0 Number Number of participated projects

Figure 12: EU Quantum funding distributed across countries per project participant (countries with > 10 million Euros in funding) Within the Dutch Quantum Technology related projects, the TU Delft has received € 73 million in 44 projects over the past 10 years, as can be seen in Figure 11. Here, ERC data has been added to gain The TU Delft attracts the largest amount of funding in the field of Quantum Technology within the Netherlands and Europe. Important to note that other universities and research institutes in the Netherlands also contribute to or coordinate 49 other Quantum Technology related projects with sizable contributions from the EU. The University of Amsterdam is the second biggest attractor of funding with 13 projects and over € 15 million in EU funding.

€ 100 50 € 90 45 € 80 40 € 70 35 € 60 30 € 50 25 € 40 20

€ 30 15 EU Funding EUFunding in M€ € 20 10 Number of projects € 10 5 € - 0

Total funding Number of projects

Figure 13: EU funding of Quantum Technology related projects and number of projects receiving this funding for different Dutch universities.

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Networks Networks are described in both scientific networks and science-industry relationships that benefit the growth of the ecosystem through distribution of knowledge, labour and capital.

The EU research programmes selected in the previous paragraph are also an indicator of network formation, as almost all projects consist of large research consortia that perform joint research. Using the data on the participants within EU research programmes, it is possible to chart collaborations between universities and other organisations to reveal (a part of) the scientific network. Figure 14 is a graphical representation of this network, where nodes represent universities and other organisations (colour coded by country) and the links represent collaboration in a EU research project. The size of nodes represents the amount of funding they receive. Connectedness is measured in the number of collaborations (links) and number of unique partners (connection to other nodes).

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ULeiden

UvA

CWI TU/e

Germany TU Delft United Kingdom France Italy Spain Radboud The Netherlands Other

Figure 14: Network diagram of European Research Projects, organisations are scaled towards the FP7 & H2020 collaborative funding they receive. Between 2008 and 2018, the TU Delft participates in 103 collaborations in Quantum Technology with 67 unique organisations. The university has built an international European research network in which it takes up a central position. Within 8 of its projects it is the project coordinator, and within 10 projects the university also functions as the host institute. Despite their lower budget, other Dutch universities such as the TU Eindhoven and University of Amsterdam also take up central positions in the network through intensive collaboration.

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Leadership Leadership is formulated as a measure of guidance in the direction of Quantum Technologies research and commercialisation, in which public parties play a role in facilitating efforts.

Dutch National Icon (‘Nationaal Icoon’) QuTech Dutch National Icons are initiatives that deal with societal challenges using technological solutions and promise economic growth in the future. In 2014, QuTech was rewarded with this status (one of four organisations in the Netherlands) because of the promising quantum technological research performed there. As a National Icon, QuTech receives extra support and funding from the Dutch government. QuTech, together with a broad spectrum of other research institutes and private partners is part of the larger Holland High Tech Roadmap on nanotechnology41 that coordinates application driven technological development in research institutes and private companies. National Science Agenda: ‘Nationale Wetenschapsagenda (NWA)’ The NWA was defined with the idea that fundamental science in the Netherlands should focus on societal challenges now more than ever. Within the NWA, taking the connection to the European science agenda Horizon2020 into account, twenty-five routes in which the Netherlands can take a leading role were identified. Of these routes, the route ‘Quantum-/nanorevolutie’ was one of the eight routes rewarded with 2.5 million euro’s. Within this route, three main topics (‘game changers’) are defined: Quantum Computing and the Quantum Internet, Green ICT and Nanomedicine. Coalition agreement 2017 The most recent coalition agreement ‘Vertrouwen in de toekomst’ (Confidence in the future) published by the Dutch government 2017-2021 explicitly notes that technical sciences with high research expenses will receive extra attention and that priority is given to the fundamental research done in line with the National Science Agenda. Furthermore, the agreement specifically states that policy in top sectors (dedicated to collaborations between industry, knowledge institutions and government) will be strongly focused on three societal themes of which one is defined as ‘quantum/high- tech/nano/photonics’. Quantum Software Consortium In 2017, the Quantum Software Consortium (QSC) was rewarded 18.8 million euros from the ‘Gravitation’ program financed by the Dutch Ministry of Education, Culture and Science. With this funding, a group of excellent researchers from disciplines computer science, math and physics can perform top research for a period of ten years to explore, develop and demonstrate possible applications for quantum computers. The group is a collaboration of researchers from the CWI, QuTech, the TUD, the UL, the UvA, the VU and is led by QuSoft.

41 Holland High Tech (2015), ROADMAP NANOTECHNOLOGY, https://www.hollandhightech.nl/nationaal/innovatie/roadmaps/nanotechnology, viewed on 27- 03-2018.

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Services and infrastructure Services and infrastructure comprise organisations and materials that are required for successful research and start-up support.

The services capabilities of Delft are centred around YES!Delft. YES!Delft is a non-profit incubator created in 2005. It is funded jointly by the municipality of Delft, TNO and the TU Delft, but also receives corporate funding. In 2013 a second building dubbed YES!Delft 2 was added with 5500 m2 of office and lab space. It focuses on high-tech start-ups and works mostly in the energy, clean tech, medical & health, industrial solutions and mobility clusters (YES!Delft has not (yet) declared quantum technology as a focus area). Its services cover a range from renting office and lab space to offering coaching programs. With its two main offers to entrepreneurs being:

● LaunchLab: 10-week (part-time) pressure cooker programme to validate a technology ● Incubation Programme: full-time growth programme where you build and grow your technology company. During the first six months, entrepreneurs take part in an intensive programme to work on all the basics of your company. YES!Delft has been the top-ranking incubator in the Netherlands in the last few years, according to UBI. Furthermore, it ranked 4th and 2nd in the category ‘University-linked Business Incubators & Accelerators’ in Europe, in 2016/2017 and 2017/2018 respectively. With regards to quantum computing, both Delft Circuits and Single Quantum are part of YES!Delft. NanoLabNL NanoLabNL is a national organisation that facilitates nanotechnology research in 5 different cities in the Netherlands (Amsterdam, Delft, Eindhoven, Groningen, Twente). Facilities and expertise of NanoLabNL can be used by universities, research institutes, start-ups and industry. Nanotechnological research activities are crucial to quantum technology research, for instance in fabrication of quantum devices with high precision. NanoLabNL is funded by Dutch governmental programmes as NanoNed and NanoNextNL.

Demand Crucial for the future uptake of a quantum technologies industry in the Netherlands is the ability of both local industries and global corporates established in the Netherlands to exploit the discoveries that are made working towards a quantum computer and other quantum technologies and create demand for these products and services. It is expected that the scientific progress in quantum technologies will lead to spinoff technologies that will lead to the creation of new devices and services (see Industry Expectations). Dutch industry position A good way of identifying a country’s strong industries is reviewing export data. The Netherlands characterises itself in having a strong competitive advantage in the production of highly specialised machines and instruments, with companies that are specialised suppliers with very specific and complex technical know-how. Of the net exports of the Netherlands in 2016, 13% concerns machinery

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of which the details are given in Figure 15. Within machinery, 44% comprises specialised machines and instruments, with a total net value of almost 6 billion US$42. On average, the Netherlands has a high revealed competitive advantage in these products, exporting more than twice the expected value of specialised machines and instruments43. For some particular sectors, such as equipment for photographic laboratories and medical devices the Netherlands has a far higher competitive advantage than the average country.

Figure 15: Export of machines and instruments from the Netherlands in 2016, divided by subcategories and percentages of the total value, source: Atlas of Economic Complexity These industries are likely to be affected by quantum (spinoff) technologies in the next two decades and judging by the current industry positioning the Netherlands has the industrial expertise to adopt these technologies in highly specialised and complex manufacturing processes. A second expectation is that the value-added in quantum computing will largely come not from hardware development, integration and manufacturing but from software development that is successful in designing applicable programs and algorithms for a quantum computer (most likely used as a service). This means that fostering demand for the application of quantum computers requires a strong communication infrastructure and software-based industry.

42 Data from The Atlas of Economic Complexity, http://atlas.cid.harvard.edu viewed on 28-03-2018.

43 The Atlas of Economic Complexity defines a revealed competitive advantage as “A measure of whether a country is an exporter of a product, based on the relative advantage or disadvantage a country has in the export of a certain good. (…) a country is an effective exporter of a product if it exports more than its “fair share,” or a share that is at least equal to the share of total world trade that the product represents (RCA greater than 1).” For more information see http://atlas.cid.harvard.edu.

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The Netherlands is a strong ICT country, with over 30,000 specialised companies in software, internet and communication and in 2016 70% of all service exports are related to this sector (see Figure 16), with a total value of 101 billion US$.

Export value of IT services from the Netherlands as part of total service exports $180 $160 $140 $120 Other Service exports (BoP, current $100 US$) $80 Computer and communications services (BoP, current US$) $60 $40 $20

$- Export Export value (in US$ billions) 2010 2011 2012 2013 2014 2015 2016

Figure 16: Export value of ICT services from the Netherlands. Data: World Bank, Image: Birch Furthermore, the Netherlands has an excellent infrastructure, with almost triple (2,903) the secure internet servers per 1 million people than the EU average (996) and a high rate of broadband dispersion (42.2%). A good example of large scale internet infrastructure is AMS-IX, the Amsterdam Internet Exchange, which is a neutral and independent Internet Exchange based in Amsterdam, the Netherlands. It interconnects around 800 networks by offering professional IP exchange services.

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4. Quantum Start-up Incubation

By Chris Eveleens Start-ups in a campus environment Start-ups are innovative young businesses that have the aim to ambitiously grow. These types of firms are known to contribute to introducing innovations to society, creating jobs, and economic prosperity. Increasingly, initiating and developing start-ups is seen as something that occurs not in isolation, but in interaction with the context of the start-up (Aernoudt 2004; Autio et al. 2014; Acs et al. 2017). Therefore, there is an interest by both academics as well as practitioners in the reciprocal relationship between start-ups and their environment. The system perspective prescribes that not only the success and focus of start-ups is contingent on its context, but also vice versa that over time the start-up affects its context. In a virtuous cycle, the context supports the emergence and growth of start-ups, who then strengthen their context by feeding resources (e.g. talent, knowledge, capital, goodwill) back (below for a schematic representation).

Legitimacy, Jobs, networks, customers, networks, lowering Ecosystem talent pool, transaction region supporting services, costs, legitimacy

university Campus

Startup community Economic activity, (e.g. incubator) Shared equipment, entrepreneurial economies of scale, culture, networks,

credibility, social investors, capital, unused technology knowledge commercialization

Figure 17: schematic representation of start-up incubation in a campus environment A campus is an especially relevant context for start-ups. It can broadly be defined as a geographical area on which research takes place through interaction and collaboration. Several scholars emphasise that campuses hold all the required resources needed to successfully launch start-ups (Link & Scott 2003; Autio et al. 2004; Phan et al. 2005; Salvador & Rolfo 2011; Miller & Acs 2017). Examples of these resources are shared equipment, economies of scale, credibility and relevant networks (Weele et al. 2014). According to the spill over theory of entrepreneurship (Acs et al. 2008; Shu et al. 2014) there is more knowledge developed in regions than can be capitalized on by existing organisations. This knowledge spill over provides unpursued entrepreneurial opportunities for start-ups. Other scholars, however, push back to this enthusiasm and draw attention to possible drawbacks. For example, Oakey

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(2007, 2013) argues that campuses also carry risks with regard to IP protection and involuntary spill- overs. Furthermore, a review by Siegel et al. 2003 has not been able to capture the great benefits of campuses for start-ups. They showed negligible ‘returns’ of being located on a science park. Nevertheless, the general consensus is that the benefits of campuses for start-ups outweigh the drawbacks. Furthermore, start-ups can also provide advantages to the campus they are located on. The start-up community, consisting of start-ups, investors, incubators, etc., can generate economic activity and jobs, which can provide legitimacy in the wider region. Moreover, by absorbing spilled over knowledge they can commercialise unused knowledge. Start-ups furthermore contribute to the formation of networks and attracting relevant stakeholders such as investors and other firms. Finally, start-ups can contribute to an entrepreneurial and energetic culture at the campus. Considering these reciprocal benefits, there is a strong case to make to develop a strong start-up ecosystem at or around a campus. Nowadays, the most popular way of fostering a start-up ecosystem is through business incubation activities. Nevertheless, business incubation is not a simple one-size- fits-all solution. Proper business incubation should be customized to its specific context. Therefore, we first briefly introduce business incubation to then apply this to the specific context of the Q-campus.

Start-up incubation Incubation in general entails the supporting of start-ups through providing services and resources. It usually takes place at a physical location at which start-ups interact with each other and other relevant stakeholders. While there are many different practices that an incubator can organise, such as events, workshops, consultancy, progress sessions, creating awareness, lobbying, etc., the main mechanism through which start-ups are supported is through indirect learning in networks (Tötterman & Sten 2005; Eveleens et al. 2016; Hallen et al. 2016). Furthermore, the literature distinguishes between specialised and general incubators. Specialised incubators focus on a specific market or industry. General incubators do not have such a focus. In practice, most incubators have some industry focus, but at the same time keep an open mind on accepting different start-ups. There is a strong case to make that there is an optimum similarity between start-ups in relation to incubation performance (Bollingtoft, McAdam and Marlow). In other words, neither an overly narrow, nor a too broad selection strategy is advisable. Over the last decade, accelerator programmes have become a popular form of business incubation. Riding on the IT wave, accelerator programmes have proven to accelerate the development of start- ups (Hallen et al., 2017). The main distinguishing feature of these accelerator programmes is the relative short period in which start-ups are supported and the pressure that is created on the start-ups to learn quickly. Apart from this an accelerator provides the same services as other incubation programmes.

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Start-up incubation at Q-campus A campus around quantum technology in Delft is exceptional in several ways. In what follows, we characterise the Q-campus context and draw implications for developing a start-up community. First, the technology is still in a relative early stage of development, when considering commercialisation activities. Related to this, the campus is highly dominated by specific academic knowledge. The consequence is that any start-up in this context will suffer from severe legitimacy problems. While the academic field enjoys an appealing scientific image, founding a business on such emergent technology is risky. Potential customers would be hesitant to do businesses with start-ups in this field. Not only do the start-ups have no track record that could boost confidence (by definition), the technology is often not well understood and deemed inappropriate in the context of business of usual. Quantum computing related start-ups would have to deal with this, but would perhaps also benefit from the current increasing attention (or even hype) that is generated for this technology. Furthermore, the world-leading, but narrow knowledge base poses a risk to start-up development. Namely, it hampers the identification of entrepreneurial opportunities, which are typically find on the intersection of fields of knowledge. In particular, to found and develop a start-up, not only technical, but also business and finance knowledge are needed. Therefore, a good start-up strategy would entail forging connections to different bodies of knowledge, including business and finance. Moreover, the timeline for developing quantum technology start-ups is long. Therefore, instead of a 3- month accelerator programme, some patience should be practised before expecting successes. Finally, besides the core quantum technology, there are other aspects of scientific research that can serve as the source of a start-up. Research methods, datasets, research tools, and research networks can be a point of departure for exploring entrepreneurial opportunities. Examples are Delft Circuits that creates components for research tools in quantum technology, and Single Quantum that creates photon detectors. Second, Delft is a region with a long track record in technology-based and science-based venturing. It harbours a rich start-up ecosystem which has spurred many start-ups, some of which have become rather successful. Yes!Delft is a renowned and important player in this ecosystem. The consequence is that before intervening and developing this start-up ecosystem, one needs to carefully assess its current merits. For example, there is already a decreasing number of start-ups that is looking for incubation services, while the number of incubators does not yet significantly decrease. This has led to competition among incubators. It does not mean that there is no room for improvement, especially not considering the specific requirements of quantum technology-related start-ups. Taken together, it makes a lot of sense to use existing facilities of e.g. YesDelft and extend these with specific services that are needed for quantum technology related start-ups. Third, the value chain around quantum computing could be dominated by a few global players that have enormous vested interests in the technology. These major players are specifically focussed on developing the architecture and integration of quantum-bits. As such they will be providing the backbone to the new technological paradigm.

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For start-ups, this situation has strategic implications. Particularly, there are some business models that are more likely to be successful than others. Considering the large players in this technologically complex context, we can expect a rich network of specialised suppliers that will cater to the major players. Also, once a dominant architectural design will be established, there will be a host of opportunities for business models that use this standard. Practically, the discussion above warrants attention to a number of aspects, when designing a start-up incubation approach around the Q-campus. Organising the following incubation services, resources, and guidelines would likely improve the chances of successful quantum technology related star-tups.

● Enhance ‘field building’ by creating networks and attention around quantum-related start-ups. ● Set up customised, interdisciplinary networking services ● Organise and offer long term resources, patience and persistence ● Maintain an open mind and active sourcing of commercialisable ideas ● Seek partnerships and complementarities with existing incubation and support activities in the Delft region and beyond ● Ensure dedicated quantum industry consulting to educate start-ups about strategic considerations in the quantum value chain and industry.

Sources

● Acs ZJ, Braunerhjelm P, Audretsch DB, Carlsson B. 2008. The knowledge spillover theory of entrepreneurship. Small Bus Econ [Internet]. [cited 2014 Jan 27]; 32:15–30. Available from: http://link.springer.com/10.1007/s11187-008-9157-3 ● Acs ZJ, Stam E, Audretsch DB, O’Connor A. 2017. The lineages of the entrepreneurial ecosystem approach. Small Bus Econ. 49:1–10. ● Aernoudt R. 2004. Incubators: Tool for Entrepreneurship? Small Bus Econ [Internet]. 23:127– 135. Available from: http://link.springer.com/10.1023/B:SBEJ.0000027665.54173.23 ● Autio E, Hameri AP, Vuola O. 2004. A framework of industrial knowledge spillovers in big-science centers. Res Policy. 33:107–126. ● Autio E, Kenney M, Mustar P, Siegel D, Wright M. 2014. Entrepreneurial innovation: The importance of context. Res Policy [Internet]. [cited 2014 May 26]; 43:1097–1108. Available from: http://linkinghub.elsevier.com/retrieve/pii/S0048733314000717 ● Eveleens CP, Van Rijnsoever FJ, Niesten E. 2016. How network-based incubation helps start-up performance: a systematic review against the background of management theories. [place unknown]: Springer US. ● Hallen BL, Bingham CB, Cohen SL. 2016. DO ACCELERATORS ACCELERATE? THE ROLE OF INDIRECT LEARNING IN NEW VENTURE DEVELOPMENT. Seatle, WA. ● Link AN, Scott JT. 2003. U.S. science parks: the diffusion of an innovation and its effects on the academic missions of universities. Int J Ind Organ [Internet]. 21:1323–1356. Available from: http://linkinghub.elsevier.com/retrieve/pii/S0167718703000857 ● Miller DJ, Acs ZJ. 2017. The campus as entrepreneurial ecosystem: the University of Chicago. Small Bus Econ. 49:75–95. ● Phan PH, Siegel DS, Wright M. 2005. Science parks and incubators: observations, synthesis and future research. J Bus Ventur [Internet]. [cited 2013 Oct 17]; 20:165–182. Available from: http://linkinghub.elsevier.com/retrieve/pii/S0883902603001204

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● Salvador E, Rolfo S. 2011. Are incubators and science parks effective for research spin-offs? Evidence from Italy. Sci Public Policy. 38:170–184. ● Shu C, Liu C, Gao S, Shanley M. 2014. The Knowledge Spillover Theory of Entrepreneurship in Alliances. Entrep Theory Pract. 38. ● Tötterman H, Sten J. 2005. Start-ups: Business Incubation and Social Capital. Int Small Bus J [Internet]. [cited 2014 Mar 1]; 23:487–511. Available from: http://isb.sagepub.com/cgi/doi/10.1177/0266242605055909 ● Weele MA van, Steinz HJ, Rijnsoever FJ van. 2014. Start-ups down under: How start-up communities facilitate Australian entrepreneurship. In: DRUID Soc Conf 2014 [Internet]. Copenhagen; [cited 2014 Aug 25]. Available from: http://druid8.sit.aau.dk/druid/acc_papers/i0e17hvf158955la6a276cnu3iey.pdf

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5. Campus environment case studies

By Elmar Cloosterman Given below is a comparison of four different campuses in The Netherlands that are considered to successful. Information is based on information provided by the organizations managing these campuses, partner organisations, and previously conducted (academic) research. Given the vast discrepancies of the information available between campuses it is hard to provide direct comparison on subjects like financing and governance. Further research in the form of interviews could provide more insight in these subjects WaterCampus Leeuwarden About WaterCampus Leeuwarden is considered the meeting point of the Dutch water technology sector and has the ambition to play a sector uniting role for the rest of Europe as well. WaterCampus has the goal to stimulate cooperation between (inter)national businesses, knowledge institutes and government within the water technology sector. WaterCampus has three managing parters: Wetsus, Centre of Expertise Water Technology (CEW), and Water Alliance. With Wetsus conducting the scientific research at the campus, CEW being the knowledge and innovation centre for applied research and product development and Water Alliance providing the partnership between public and private companies and government institutes. These three organisations thus provide the full ecosystem of the campus in which initial ideas can be researched (Wetsus), tested (CEW) and marketed (Water Alliance). Hence, WaterCampus Leeuwarden is the cooperative organization overviewing these three organisations, with the partner organisations being the owners of the brand WaterCampus. Each of the three managing partner organisations have long lists of partner organizations ranging from knowledge institutes (Universities, Universities of Applied Science, research institutes) and public organisations (Provinces, municipalities, ministries and cooperative organisations such as the SNN) to private organisations (Unilever, Shell, FrieslandCampina, etc.). The managing partners create the campus ecosystem by providing space and facilities to start-ups, scale-ups, incubators and spin-off companies.

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Figure 18: WaterCampus its 'ecosystem'. Science = Wetus, applied research = CEW, business = Water Alliance

Research and product development activities Research at WaterCampus is divided between two organizations (Wetsus, CEW). With Wetsus focusing on purely scientific research. Currently, the most important research topics for Wetsus range from desalination, biofouling and concentrates to Blue- and CO2-energy. CEW’s research agenda is more focused on innovation and practical solutions, with the one of the main topics being the sustainable management of water in The Netherlands.

From 2015 to 2017 Wetsus employs a total of 179, 188 and 20344 PhD candidates and post-docs45, respectively, who work collectively on a research program consisting of 22 research themes. In principle all PhD-researchers executing the research projects are employed by the involved know-how institutes and full time seconded in the multidisciplinary Wetsus laboratory in Leeuwarden. CEW, Water Alliance and the overviewing WaterCampus organisation provide no information about fte’s and/or product development roadmaps.

44 Number of expected employees based on predictions from 2016

45 Exact number of fte is not provided

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Funding Wetsus its funding can be divided into two sections: the funding of innovation ecosystem activities and research funding. For the former, which include activities in the field of valorisation, entrepreneurship, spin offs and talent, Wetsus closely works with Water Alliance and CEW. Funding for these activities is expected to be made available by the regional authorities, and a joint WaterCampus budget of some €1,7 million per year has requested for the period up to 2021. The share of Wetsus of this budget will be €500.000 per year. Research funding can be, in turn, be divided into two main sections: Research competition EU and the main Wetsus research program. Wetsus allocates some €1,75 million per year from various EU programs for innovation and regional economic development programs (e.g. Horizon2020, EIT, COSME, Interreg, European Fund for Regional Development). Additional funds are derived from a program widening cooperation in the EU (TTI-transition funds from the ministry of foreign affairs) and from bilateral cooperation with regions that have water technology as one of their main ambitions in their EU RIS strategy. For its research funding, Wetsus works according to the TTI principles, which entails that company contribution is doubled by government subsidies, and universities add a significant amount in kind. Starting point of core research financing is that a base financing of €6,5 million per year from governments, increased by 50% of that amount by companies and with additional in kind support from universities, is according to Wetsus, required to maintain significant impact, quality and viability. Current participating companies and universities have a rolling financial investment and will invest €5,8 million per year in the research program. The main government research funding is expected to be continued by two ministries. In 2017 of the total budget of €13,1 million of it’s research program €3,3 million was funded by private contributions (>80% cash), €2,30 million by know how insitutes (in kind), €1,25 million by the Ministry of Economic Affairs and Ministry of Infrastructure and Environment, combined, €0,50 million by the NOW, €4,75 by the REP- program Northern Netherlands and €1 million by the province of Fryslan. CEW its financing can be split up in three main components: release of funds by Platform Beta Techniek (PBT), revenues from private firms, and funds from knowledge institutes and subsidies, with funding being €500.000, €448.000 and €618.000 for each of the components in 2015, respectively. This makes a total €1,566,000 in revenues. In that year CEW spent €861.000 on research, €300.000 on labour and €488.000 on all other costs, making total costs add up to €1,650,000. Water Alliance does not provide insight in their finances

Infrastructure The WaterCampus is located in Leeuwarden in the province of Fyslan, which has a proximity of 72km and 150km to airport Groningen Eelde and airport Schiphol, respectively. According to Wetsus a large array of research facilities is available in their laboratories to enhance research of both the research groups and spin-off companies.

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Partnerships In the case of Wetsus the academic program is (to be) defined by the involved industrial partners, in consultation with, and carried out by academic groups. The research program is divided in themes, which essentially are Intellectual Property-clusters. Per theme 8 companies and 4 universities cooperate. These companies pay an annual participation fee which gives them the right to define the program (as a group with the other theme companies) and to exercise a shared right of first refusal on the results of the research. Scientific chairs are invited to execute the research and to share their know-how with the other theme participants. In the model, a distinction is made between company and know-how institute participants, as described below. All participants have free access to the following services:

● Early access to all Wetsus’ scientific publications ● Membership of an water technology network containing of 125 partners ● Dedicated workshops ● Admission to internal conferences ● Access to public congresses In general, companies participate in Wetsus per research theme. Knowledge, which results from pre- competitive research funded by these participants, is implemented commercially by the participants and is made accessible to third parties through patents and scientific publications. Cooperation in not Limited to Dutch companies. As of 2016, 26 percent of the participants are from outside the Netherlands. Participants pay €27,500/theme/year or €16,500/theme/year when their turnover is less than €3 million/year. Further, a platform membership with network function is a participation form companies can choose for. These participants have no voting rights on the research program. However, they do have indirect access to the intellectual property of Wetsus (to patents that are not transferred to relevant theme participants) and a privileged position with respect to information. The 2016 annual rate for this type of participation ranges from €3,300 to €11,000, based on the company’s turnover. The involved know-how institutes conduct the actual research. Leading research chairs form various European universities are invited for this purpose. Research is mainly conducted by PhD students, which have access to research facilities of 21 research institutes and a very large scientific network are advantages of this approach. As per 2016, 55 scientific chairs from 21 institutes from 9 countries participate.

Intellectual Property The themes the Westsus research program is divided in are essentially Intellectual property clusters. The IP regulations of Wetsus aim to effectively transfer the developed know-how to the involved companies and to let the involved know-how institutes benefit from that in a reasonable manner. The IP-regulations are based upon the following starting points:

● All inventions are done by know-how institutes.

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● Patents will be led by and paid for by Wetsus, as intermediary between the companies and know- how institutes. ● Wetsus hence offers the patents to the involved company participants. For commercial use, a capped success fee (or royalty), related to the market value of the invention, is paid to Wetsus. ● If none of the entitled company participants is interested, the patent can be offered by Wetsus to third parties. ● Earned success fees will be divided 50/50 between Wetsus and the know-how institute that did the actual invention. The know-how institutes can transfer (part of) their earnings to the inventing scientist(s). Wetsus’ revenues in this regard are reinvested in the research program.

For participating public companies, such as water boards and drinking water companies, a ‘group- participation’ cooperation form is offered. Members of these groups cannot obtain commercialization rights on patents, but can apply the inventions in-house royalty-free. All developed know-how will be made public, either through scientific publications or through patenting.

Ecosystem The WaterCampus is situated in Leeuwarden, the capital of the Dutch province of Fyslan. This province is characterized by a relatively high density of independently owned and globally exporting water companies. In addition to the CEW, Leeuwarden also houses the ‘Centrum voor Innovatief Vakmanschap Water-CIV Water’ which enhances and supports vocational education and training for water-related professions. The CIV collaborates in partnership with several companies in the water sector. To overcome logistical bottlenecks in the innovation chain, Wetsus, together with Water Alliance, facilitates the realization of demonstration sites where new concepts can be scaled up, tested and demonstrated. The site has been and will be realized in a radius of 50km around the WaterCampus. Further the Water Application Centre (WAC) for bench scale testing, available for commercial companies, has been developed in cooperation with van Hall Larenstein (university of applied sciences) and local water companies.

SME’s, spin offs and start-ups Wetsus sees start-up companies and SME’s as a crucial vehicle for the introduction of innovations into the market place. The efforts of Wetsus and Watercampus have resulted in the start of 27 spin-off companies and in various scale-up and demonstration projects for technological concepts. In the Netherlands as a whole, 110 new water technology companies have started their business in the 2000- 2015 period, of which 27 are Wetsus spin-offs and 66 have direct ties with Wetsus and/or Watercampus. Wetsus and WaterCampus Leeuwarden enable start-ups and SME’s in several ways;

● Matchmaking and access to the Wetsus know-how network (with partners, end users and universities) ● Creating innovative environment ● Facilitating the access to seed and venture capital in a dedicated way for the water sector

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● Working closely with organizations like Bison, BeStart, Water Alliance and Syntens. In this way entrepreneurs or inventors with early business ideas can be supported by these organizations. For instance, Bison supplies coaching and pre-seed capital ● Organizing business education (MBA and business challenge) and co-offering the BeStart business accelerator program ● Supporting an incubator for spin-off’s from Wetsus and universities and for other small water technology companies. This incubator is located in the direct vicinity of the WaterCampus ● Facilitation of research infrastructure; access to demo sites ● By stimulating the creation of joint-ventures for the further development, scale-up and commercial implementation of new technology In general, Wetsus plays a role as matchmaker between financiers and water technology companies in need for capital. Wetsus and Watercampus have the position to, in a neutral way, create a platform for water technology companies to showcase and demonstrate their innovate propositions. Governance As said above, WaterCampus is managed by three managing company partners who all have their own boards. Wetsus has a supervisory board, an executive board, an advisory board and both a science- and organizational management team. CEW has both a general management and an supervisory board. Water Alliance has a similar structure.

Leiden Bio Science Park About Leiden bio science park is a campus park which houses around 195 dedicated medical life science companies and institutions. The park was started in Leiden, the Netherlands in 1984, by a collaborative effort between Leiden City Council and Leiden University, after a professor of Plant Biotechnology at Leiden University convinced these organizations that biotechnology can act as a source for future economic activities. When founded in 1984 the science park was a managed Leiden University who owned all the land the park was built on. Later the City Council decided that the area would primarily be used for organizations active in the biotechnology related industries. In 2005 the foundation ‘Leiden Life meet Science’ was founded by Leiden University, the City council, LUMC, TNO, Naturalis, Chamber of Commerce Rijnland, the Province of Zuid-Holland, Leiden University of applied Science and ROC Leiden. The foundation has the development of the park as its main focus. Leiden university is owner of the land the campus is built on. The foundation ‘Leiden meet Science’ is the organization that directs the course of the campus and its ecosystem.

Research There is no guided research agenda or roadmap for Leiden bio science park. Leiden university and LUMC have their own (separate) research agenda and may or may not collaborate with campus

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partners (and vice versa). The campus, however, is built to stimulate these collaborations. The main goal of the Leiden Bio Science Park is creating a fruitful ecosystem for organizations related to bio science. In setting the course of the Science Park there is differentiated between three types or organization that are (or will be) located on the campus. The first type are organizations consisting to the sector Life Science & Health (pharma, biotech, medical technology) that use (gen-)laboratories, first-rate production, and use a maximum of 50% business-related offices. The second type are scientific organizations and higher education organizations in Life Science & Health. The third type are all organizations that are related to the cluster of Life Science & Health organization that focus on support of the cluster. These can consist of 100% office space. The organization governing the campus thus overviews the type and number of organizations located at the campus and all shared facilities (labs, restaurants, infrastructure, ect) and does not intervene with research agenda, product development and/or cooperation between organizations.

Acquisition For the acquisition of new companies Leiden bio Science Park foundation co-operates with WestHolland Foreign Investment Agency (WFIA) and the Netherlands Foreign Investment Agency (NFIA). Together with these partners LBSPf maintains a network of foreign companies, campuses and biotech organizations. Between 2006 and 2010 8 foreign Life Sciences companies with 275 employees were acquired. Of the total growth of Leiden bio Sience Park approximately 44% of companies are acquired through acquisition, while the rest of the growth is from autonomous growth from previously located firms. Around 31% of growth in employees can be constituted to acquisition.

Infrastructure The Leiden Bio Science Park is situated in the urban area of The Netherlands in the vicinity of the cities Amsterdam, Rotterdam and The Hague. From Schiphol airport the campus can be reached in around 15 to 20 minutes. The campus has several open research facilities, meeting points, sports centers, hotels and conference rooms.

Governance

The park is managed by four organizations. The Leiden Bio Science Park Foundation manages the development of the campus by attracting new companies and facilitating them, enhancing internal cohesion, managing projects on labour market and start-ups, and handling marketing communication and lobby of the park. The companies and organizations at the park are represented by the entrepreneurial society of Leiden Bio Science Park (OV BSP). The OV BSP takes care of park management and maintenance, offers collective facilities (shuttle bus, car sharing) and collective contracts, and acts as a spokesperson in infrastructural projects on behalf of its members. Biopartner Center is the management behind housing for young an maturing companies. They manage three buildings for the incubation of young and starting companies and a fourth building, the

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Accelerator building, is dedicated to young maturing companies who have outgrown their start-up phase. Luris is dedicated to knowledge partnering between academia and industry, as it acts as a broker for the research and technology developed at Leiden Univerisity and Leiden UMC. Luris also stimulates academic entrepreneurship for start-ups and spinoffs, offers legal support in research funding.

Chemelot About Chemelot is a campus oriented on the chemical industry of around 800 sq/km located in South- Limburg. Around 150 organizations are located at the campus including big multinational companies such as Arlenxeo, AnQore, DSM and Fibrant. In addition, the Brightlands Chemelot Campus is part of the Chemelot campus, which stands in connection to Brightland campuses in Maastricht Heerlen and Venlo. Chemelot is expected to employ more than 10.000 individuals in 2025, while currently employing 6.000 individuals on the industrial park, 1.700 on the Brightlands campus, and houses 600 Chemelot students. The site where Chemelot is currently located was in 1929 the location of the coalmines owned by the Dutch government (DSM). Later, several production facilities and laboratories were built with a wider focus on the chemical industry. In 2000 DSM presented plans for a significant change of course. In 2002 all petrochemical activities were transferred to Saudic-Arabic organization SABIC. At that moment DSM and SABIC were the two main stakeholders at the site. In 2008 the plans for the construction of an actual campus were formed. In 2012 DSM, the province of Limburg and Maastricht University/MUMC+ were the founders and stakeholders of the Chemelot Campus. The province of Limburg invested 100 million euro’s in the development of the campus. In 2013 the Aachen-Maastricht Institute for Biobased Materials (AMIBM) was founded. AMIBM is cooperative research institute between Maastricht University, the Rheinisch-Westfälische Technische Hochschule (RWTH) and Franhofer IME. As of today, DSM NV and SABIC Europe BV are still the biggest users of Chemelot industrial Park. Other companies on the campus are Arianxeo, EdeA, Borealis, Carbolim, Polyscope, Polymers, Vynova Beek bv, Nano Specials, Cymace, OCI Nitrogen, Basic Pharma, Intertek, Sekisui S-lec and Technoforce Solutions.

Research On the chemelot campus scientists of Maastricht University, Rheinisch-Westfälishce Technische Hochschule and TU Eindhoven conduct research on biomaterials in collaboration with companies such as Arlanxeo, DSM and Sabic. Research institute Chemelot inSciTe develops processes to produce chemical building blocks from bio-waste. In the Aachen-Maastricht Institute on Biobased Materials processes are developed to make biomaterials from plants. Currently plans are being made to broaden the scope to the theme of ‘sustainable process technology’. This includes the reuse of CO^2, recycling, watertechnology and the development of materials for energy storage.

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Ecosystem The campus positions itself as the leading campus in performance materials, biomedical material and biobased materials and processes. Companies such as SABIC, Arlenxeo and DSM develop these materials in their research facilities. Besides the multinational companies an array of start-ups and SME’s such as Flowid, Isobionics, Pharmacell and Xilloc are located on the campus. These companies can make use of several R&D- and pilot facilities. The campus also facilitates practical education through the Chemelot Innovation and Learning labs (CHILL) for a couple of hundred students per year. Also, a ‘service-boulevard’ is located at the campus with open business development, knowledge and finance networks and facilities for these companies to make use of. Recently, a stakeholder team Chemelot 2025 was formed with all big on-site organizations (SABIC, OCI NitroGEN, Arianxeo, Fibrant, AnQore and DSM), Chemelot Campus and on-site service companies Sitech and USG. This group has the goal to develop the Chemelot campus in being the most competitive and sustainable materials- and chemical site of Western-Europe.

Infrastructure The Chemelot campus has its own harbor to its disposal and has a rail terminal. It is closely located to the network of highways in the area and the pipelines for nafta and ethylene connect directly to Antwerp, Rotterdam and the Rijn-Ruhrarea (ARRRA-cluster)

Funding All on-site users of the Chemelot campus invest more than €200 million combined on a yearly basis. One third of these funds are used to increase the sustainability of the campus, the rest is used to make the campus more efficient. Currently Chemelot is setting up plans to search for cooperation with local government, the province of Limburg, Nederlands Investerings Agentschap (NIA) and the Nederlandse Investeringsinstelling (NLII) to set-up a multiple-year competitive financing facility. All activities related to sustainability and necessary site-developments (such as connection- and development costs), can be financed from these funds.

Intellectual property There is no general outline on how intellectual property is managed campus-wide. However, at for instance the CHILL lab collaborators enter in a non-disclosure agreement in which agreements can be made who has the right to certain aspects of intellectual property. Hence, research agreements are made between partners instead of a general organization overviewing intellectual property.

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Governance The Chemelot Campus is managed and developed by Chemelot Campus B.V. and has three shareholders: Royal DSM, the Province of Limburg, and Maastricht University. High Tech Campus Eindhoven About The main force behind High Tech Campus Eindhoven is Philips. At the end of the 1990’s all R&D- activities of Philips were scattered across the city of Eindhoven. Philips saw an advantage in clustering these activities in one physical place, hence the start of the Philips High Tech Campus in 1998. In 2003 Philips opened up the campus for other organizations to settle. In 2012 the campus was sold by Philips to Ramphastos Investments, an independent organization, and is now open for other organization to join the campus. The campus houses approximately 11.000 higher educated professionals in an array of companies and organizations ranging from multinationals (Philips, ASML, NXP) to SME’s, TU Eindhoven, TNO, and research centers. On the high tech campus, a large network of companies work with the main actors (Philips, ASML) in developing the campus. In total there are 175 different companies and organizations who reside on the campus. More than 80 percent of the organizations collaborate on one or more R&D projects. Holst, a research institute started by TNO and Imec, is one of the main drivers of innovation on the campus. As a high number of companies and research institutes reside on the campus, the ecosystem can be seen as rich and dense. With the presence of the TU Eindhoven, large companies like Philips and ASML, research institutes like Holst, and a vast array of SME’s and start-ups, all types of organizations that are expected to be found in an campus ecosystem are present.

Research Circa ten research institutes reside on the High Tech campus. Most important being the TU Eindhoven (specializing in engineering science & technology), Holst (open R&D center for wireless autonomous sensors and flexible electronics), TNO (independent research center for applied scientific research) and ECN (energy research organization).

Infrastructure The High Tech Campus is considered a high potential real estate project, meaning that during the development there was a focus on high quality architecture, quality landscaping and good accessibility from the local highway network. The municipally of Eindhoven is owner of the land the campus is built on and decided to provide this land as a public space. Meaning that the area will be developed with a certain goal, while not restraining it for outsiders. When taking design into consideration, the campus is built around the premise of social interaction. All buildings are centered around ‘the strip’, where restaurants, bars and event spaces are combined with ‘commercial third places’.

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Governance There is one managing board responsible for the development of the campus. This mainly done by using an selective admission policy for companies wanting to move to the campus. Only renowned companies or start-ups with high potential are permitted to the campus. Besides that, it is the managing board its responsibility that the organizations at the campus are satisfied about the facilities and the level of social (intercompany) interaction. The latter is done by organizing several (networking)events and seminars.

Sources Websites and annual reports of the described campuses and/or partner organisations. Jousma, H., Scholten, V., & van Rossum, P. (2009, June). Framework for analyzing the growth of University Research parks applied to the bioscience park in Leiden, the Netherlands. In Triple Helix VII International Conference 17-19 June 2009. Nijhof, A. J. (2015). The (constructed) road to social interaction: How the physical, social and lived space influence social interactions in third places on the High Tech Campus Eindhoven(Master's thesis).

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Appendices Appendix A1: Qubit Roadmaps Superconducting circuits. This technology is the best working example of a quantum computer. Qubits are constructed from resonant microwave circuits in a Josephson tunnel junction. The two lowest energy levels are used as a qubit. IBM has developed a 50 qubit prototype by now. This approach is the most mature but also the least scalable of the key approaches for quantum computing. The fabrication is done with thin-film technology, which is also on the rise in the solar industry. Problems arise with noise in the qubits leading to errors. These errors need to be compensated by other qubits. Also interconnecting the qubits is more difficult. The limit of this technology is probably reached soon. IBM aims to build a quantum computer of 1.000 qubits using this technology in 10 years. “Regular” solid qubits seem to have a scale limit of around a few 100 after which it seems impossible to link more together because of interference (house of cards idea, every qubit is more difficult). However, only at a 1.000 bits it becomes interesting in terms of computing power. Dead end? A miracle might be required, which is what Google and IBM hope for. Trapped Ions. This approach uses electromagnetic fields to confine ions. The qubits are stored in the stable electronic states of each ions, and information is transferred through quantized motion of the ions. It is one of the least developed systems and is mostly researched in university labs. No large companies are pursuing this technology yet. At this moment investigations are carried out on various fabrication techniques and electrode configurations. Topological qubits. Traditional quantum computer architectures store information by capturing a particle in a localized space, which makes these systems very sensitive to the external environment. This sensitivity introduces errors which then need to be corrected (by other qubits). These errors and error corrections hinder the scalability of systems and are a major challenge in quantum computing. The idea of a topological quantum computer is to store the information in an inherently more stabilized topological space. For this we need a special 'type' of qubit which is made of 'non-abelian anyons'. The problem is these anyons are hard to find and make. One of the more promising techniques to fabricate them is using 'Majorana modes'. The first real-life topological qubit still has to be built, but because of the error-free nature of the system this is seen as the technology with the highest potential. Microsoft is backing this type of quantum computer. In this technology, both linking qubits and writing algorithms that function are a challenge (Gartner 2017). This needs more backup from other sources. Microsoft has QuARC, a research group tasked with designing quantum algorithms. Semiconductor spins. In semiconductor materials, isolated donor atoms trap single electrons to confine a qubit. These systems are considered as promising due to their long coherence time (long lifetime of the qubit, which means stability). Another advantage is that fabrication exploits the same technologies as the semiconductor industry. The approach has received interest from Intel but faces technological challenges in demonstrating a scalable architecture due to decoherence problems.

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The EU report however also highlights two other, lesser known approaches: Impurity spins and linear optics46. Due to their niche potential, even for quantum technologies, they have been omitted from this report.

Appendix A247: Progress in number of qubits

Company Type Technology Now Next Goal

Intel Gate Superconducting 49 TBD

Google Gate Superconducting 72 TBD

IBM Gate Superconducting 50 TBD

Rigetti Gate Superconducting 19 128

USTC (China) Gate Superconducting 10 20

IonQ Gate Ion Trap 7 32

NSF STAQ Project Gate Ion Trap N/A ≥64

Intel Gate Spin 26 TBD

Silicon Quantum Computing Pty Gate Spin N/A 10

Univ. of Wisconsin Gate Neutral Atoms 49 TBD

Harvard/MIT Quantum Simulator Rydberg Atoms 51 TBD

Univ. of Maryland / NIST Quantum Simulator Ion Trap 53 TBD

D-Wave Annealing Superconducting 2048 5000

iARPA QEO Research Program Annealing Superconducting N/A 100

NTT/Univ. of Tokyo/Japan NII Qtm Neural Photonic 2048 >20,000 Network

46 Acín, A., Bloch, I., Buhrman, H., Calarco, T., Eichler, C., Eisert, J., & Kuhr, S. (2017). The European Quantum Technologies Roadmap. arXiv preprint arXiv:1712.03773.

47Quantum Computing Report (2018), Qubit Count, https://quantumcomputingreport.com/scorecards/qubit-count/, last checked 08-08-2018

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Appendix A3: Method used for selection within EU funding data

To select Quantum Technology related projects from the 7th Framework Programme and the Horizon 2020 Programme, public data was downloaded via https://cordis.europa.eu/projects/home_en.html on 28-02-2018. The steps taken to select Quantum Technology related projects were: 1. A selection was made based on if the title or objective contained the word ‘quantum’: 1700 projects were selected. 2. By hand, 99 projects were categorized to be directly related to Quantum Technology and 161 projects were categorized not to be related to Quantum Technology. This selection was double checked by a second person. 3. Using a text-mining algorithm on the title and objectives of the remaining 1440 projects, the projects were ranked with a score describing how much the project is related to Quantum Technology.

Score describing relation to Quantum Technology 2,5

2

1,5

Score 1

0,5

0 0 200 400 600 800 1000 1200 1400 1600 Projects that were analyzed (sorted by score )

4. By hand, a threshold was determined. All projects with a higher score than 0,7 were determined to be closely related to Quantum Technology resulting in selection of 312 projects. Together with the projects selected by hand (99), a total of 411 Quantum Technology related projects were selected.

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Appendix A4: Selected Dutch QT related master programmes 1. We use DUO open data, acquired by them on 1 October 2017. This data contains the number of students that received their diploma per gender, per year (2012 t/m 2016) per province, per municipality, per university, per study, per type diploma. 2. This file contains 1.935 different studies 3. We select from “Croho onderdelen” (Techniek, Recht, Gezondheidszorg, Taal & Cultuur, Gedrag & Maatschappij, Landbouw & natuurlijke omgeving, Onderwijs, Economie en Natuur) only ‘Natuur’, ‘Sectoroverstijgend’ and ‘Techniek’. 4. After this, 351 studies are left 5. We select diploma type "wo master" which leaves 211 studies 6. Then selection of QT related studies leaves 50 studies:

● M Applied Mathematics ● M Mathematics ● M Applied Physics ● M Mathematische Wetenschappen ● M Artificial Intelligence ● M Nanoscience ● M Astronomy ● M Nanotechnology ● M Astronomy and Astrophysics ● M Natuurkunde en Meteorologie & ● M Chemical Engineering Fysische Oceanografie ● M Chemische Wetenschappen ● M Parallel and Distributed Computer ● M Chemistry Systems ● M Chemistry (joint degree) ● M Physics ● M Complex Systems Engineering and ● M Physics and Astronomy Management ● M Physics and Astronomy (joint degree) ● M Computational Science ● M Science ● M Computational Science (joint degree) ● M Science and Technology of Nuclear ● M Computer Engineering Fusion ● M Computer Science ● M Software Engineering ● M Computer Science (joint degree) ● M Sterrenkunde ● M Computer Science and Engineering ● M System and Network Engineering ● M Computing Science ● M Systems and Control ● M Data Science for Decision Making ● M Design for Interaction ● M Electrical Engineering ● M Embedded Systems ● M Industrial and Applied Mathematics ● M Informatica ● M Informatiekunde ● M Information Science ● M Information Sciences ● M Information Studies ● M Internet Science and Technology ● M Logic ● M Materials Science and Engineering ● M Mathematical Physics

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