Quantum Computing Report

GQI’s Quantum Ecosystem Assessment: The PESTEL Perspective

Credit: Oxford College of Marketing

by Amara Graps

In the last several weeks, I’ve looked at different quantum technology slices of Australia’s (part 1, part 2), Germany’s, and France’s Ecosystems  (slices: Confidence, QPUs, Investments) using  GQI’s Ecosystem PESTEL framework, without providing a full top-down description of what is inside this system. So let me remedy that today.

GQI Methodology builds upon a framework of macro-economic factors around the PESTEL acronym (Political, Economic, Social, Technological, Environmental, Legal) in a framework to capture the complex dynamics shaping this emerging field.

A comprehensive depiction of the quantum ecosystem is shown in the next Figure, which also shows how different stakeholders and components interact with one another. This graphic illustrates the connections between the economic, social, and political, and technological enablers that impact quantum progress.

GQI’s approach goes beyond traditional PESTEL analysis by incorporating detailed quantum tech sub-dimensions. The Quantum Ecosystems PESTEL system assesses the current and future quantum technology ecosystems globally, encompassing quantum computing, sensing, and communications, while examining key countries and regions driving quantum innovation, evaluating their strengths, challenges, and strategic positioning.

GQI’s enhanced framework incorporates the following dimensions:

  1. Political: Policy (National initiatives, Quantum-specific); Collaboration (International partnerships, Bilateral agreements)
  2. Economic: Funding (Regional programs, VC & Strategic investments); Institutions and Markets; End User Sectors (Life Sciences, Chemical & Materials, Advanced Industries, Financial Services, Energy & Infrastructure, Security & Defense, Machine Learning, Cybersecurity)
  3. Social: Human Capital (BSc & MSc Programs, PhD Programs, Workforce); Support (Visa requirements, Startup-friendly environments, Relocation assistance)
  4. Technological: Science (University research, post-grad sponsorship, Research output); Partners (Incubators/Accelerators, Startups, RTOs, Big Tech, Fabrication facilities, Suppliers)
  5. Environmental: Mission Opportunities (Wind, CO2, Solar, Water, Electric, Hydrogen, Migration, Human Rights)
  6. Legal: Law (IP, Patents, Litigation); Regulations (Standards, Export controls, Data residency); Traditions (Dual-Use, On-site requirements, Centralization)

In GQI’s Data Collection and Analysis, we synthesize information from government reports, academic publications, industry analyses, and expert interviews. Where available, quantitative data on investments, workforce development, and market projections are collected. To address uncertainties inherent in emerging technologies, GQI cross-referenced multiple sources and sought input from quantum specialists across academia, industry, and government.

Upon entering the GQI Playbook, you will see a screen: “Quantum Ecosystems Assessment”, where the Global View is presented. The countries sorted are by ‘Overall Score’, but this is customizable, and can be sorted by any of the other columns. I’ve outlined with a red rectangle, the U.K. because of the interesting example it presents, which I’ll describe in a minute. Any of the countries can be selected by clicking on the dot in the map. The six PESTEL dimensions is shown by value on the right side of the screen. If you wish to make a direct comparison between two countries, select the Comparison Tool at the top of the screen. To the right, 

As an example, let’s look at one of the highest-scoring quantum Ecosystems, the U.K. in GQI’s PESTEL framework.

The U.K. in GQI’s Quantum Ecosystem PESTEL Framework

Figure. From GQI’s comprehensive Quantum Ecosystems Playbook where a country-by-country assessment can be made, including direct country-to-country comparison. (*) 

U.K.’s Overall PESTEL score is #2 out of 32 countries. In five of the six PESTEL dimensions, the U.K. is a world quantum technology powerhouse, at either #1, #2, or #3. The Ecosystem Assessment follows up the charts with an up-to-date Ecosystems Report, which includes 3 pages of assessments for the U.K., describing the specific points in each of the PESTEL dimensions.

Where the U.K. falls to the middle of the pack, is in the Environmental dimension, where it is #14. The Environmental dimension is “Mission Opportunities”: Wind, CO2, Solar, Water, Electric, Hydrogen, Migration, Human Rights. These prospects offer a nuanced and frequently disregarded facet of the quantum revolution, as GQI perceives the ecological footprint of quantum technology as well as the potential advantages of quantum computing for addressing environmental issues. As per GQI’s evaluation:

The alignment of quantum technology and the wider environmental agenda is set to become an increasingly important tool in maintaining public and governmental support.  GQI believes that quantum technology has a very strong contribution to make to this agenda. This is set to be an important hedge against risks to continued support for the development of this new technology.

There is an opportunity for the U.K. to communicate its average quantum environmental rating to its sustainable community. The U.K. is usually amongst one of the highest-scoring countries, environmentally. However, due to the current government rolling back several pieces of climate legislation, the recent Climate Change Performance Indicator (CCPI) shows that the U.K. has slipped to #20. Mutual support from the U.K. climate change community and the quantum community could highlight the quantum computer energy use, as well-regarded quantum technology Use Cases in Climate Change, Next Generation Power Systems and Renewable Energy for future quantum activities.

(*) GQI’s Quantum Ecosystem Assessment operates on a principle of Exploration to follow ‘what-if’ scenarios, with immediate feedback. For the U.K., GQI has a separate Quantum Tech in UK report. That separate report is 44 pages of UK’s industrial policy, the UK National Quantum Technologies Program, present and future, National Strategy, Challenges & opportunities, what GQI is tracking. 

If you are interested to learn more, please don’t hesitate to contact info@global-qi.com

September 18, 2024

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