Australia’s Quantum Moment

Cover image: PsiQuantum 2024

Australia needs a sophisticated “hybrid approach” to economic policymaking if we are to address 21st century challenges​

Market liberalisation in the 1980s and 90s enabled Australia to develop a highly productive, highly competitive economy that saw major increases in Australian living standards.​

But there has been a two-decade drought in major productivity-boosting economic reform. Global socioeconomic trends such as decarbonisation, digitisation, trade de-risking, and ageing populations mean that the pathway to future prosperity is uncertain. Today, productivity growth and income growth are stagnant. ​

21st century policy challenges increasingly require ’hybrid solutions’: sophisticated combinations of government and market tools that promote equity and efficiency. Governments around the world are making large public investments to grow high-tech, high-value sectors that have positive externalities across industries and the economy. There is a case for investments in platforms and infrastructure that creates and extends a comparative advantage for Australia.

Quantum computing represents a unique and transformative opportunity for Australia, but substantial investments will be needed to realise its potential​

The Government has identified critical sectors for support that can be strategically beneficial for Australia. These are sectors that have strong positive spillovers for other industries, the community and the economy and which the private sector will struggle to deliver, thus warranting government support.​

This report outlines the benefits and advantages of Australia in converting a strong research base in quantum computing to a fully commercialised, world-leading industry. There are considerable opportunities to spur firms, innovations and capabilities by investing in underlying infrastructure. It is a clear area where a hybrid government-private approach will deliver substantial spillover benefits across the economy and community by building a new capability.​

Close engagement across Australian governments is crucial for success, especially given the spillover benefits on offer, and the geostrategic and security implications at stake.

A utility-scale quantum computer built in Australia in the next decade will unlock transformational opportunities and advantages​

A utility-scale, fault-tolerant quantum computer (FTQC) will generate substantial benefits for Australians over the coming decades. Public investment is crucial to realising the public good
on offer.

These include economic benefits from a new technology; ecosystem benefits for the local quantum industry; research and innovation benefits across the economy; and geostrategic benefits.​

The construction of a utility-scale FTQC could create 2,800 jobs for the local economy and $5.1B in economic benefits. ​

A fully-functioning, utility-scale FTQC could benefit sectors as diverse as health, security, climate, agriculture, finance, transport, and energy. It would establish Australia as a world-leader in a critical geostrategic technology, bringing benefits to the region and establishing new sovereign capabilities for Australia.​

Download the full report here.

Visit the PsiQuantum website here.