ス ポ ッ ト研 究

Does your business havea quantum strategy?
Richard St-Pierre, General Director
Mark M.J. Scott, Chief Marketing Officer
DistriQ – Quantum Innovation Zone

According to Gartner, a leading research and advisory
firm, the looming importance of developing a quantum
technology plan for businesses cannot be overstated. Just
as most organizations were caught off guard by thesudden market emergence of artificial intelligence (AI),companies need to learn from that experience and prepare
for the inevitable advancements in quantum technology.
The lessons learned from AI's rapid evolution highlightthe importance of staying ahead of the curve and investingin research, development, and strategic planning forquantum computing. Businesses need to assess thepotential impact of quantum technology on their industries
and explore its possibilities for enhancing computational
power, data analysis, and security. By proactively
incorporating quantum technology into their long-term
strategies, businesses can position themselves to harness
its transformative capabilities and gain a competitive edgein the future.

Courtesy from DisitriQ

Quantum advantage aims to prove that quantum systems
can outperform classical algorithms in specific domains.
Quantum advantage is the stepping stone to the potential
revolution in fields like cryptography, optimization, drug
discovery, and materials science by significantly
accelerating computations and unlocking new possibilities
for solving complex problems.

The mainstream discourse focuses on Quantum advantage
which refers to the capability of quantum computers tosolve computational problems faster than classicalcomputers, even if the solutions obtained are notpractically useful or relevant.

Quantum economic advantage prioritizes the use ofquantum computers to address real-world businesschallenges rather than solving purely academic problems,and highlight the computational superiority of quantum
computing. While solutions derived from quantum
economic advantage may differ from classical computing
solutions, the additional perspective and knowledge
gained can enhance the developed solution. Businesses
are seeking to tackle complex and strategic challenges
that cannot be practically solved by classical computing.
They are primarily concerned with obtaining a powerfulsolution, regardless of its underlying technology, fromclassical, quantum, or hybrid computing.

“A business achieves a quantum economic advantage
when a quantum computer provides a commerciallyrelevant solution, even if only moderately faster than aclassical computer could, or when a quantum computer
provides viable solutions that differ from what a classicalcomputer yields.” -- Francesco Bova, Avi Goldfarb, Roger
Melko – MITSLOAN Management review, Spring 2023

Quantum technologies have been developed and deployedin limited use cases – however resolving strategic businesschallenges at scale via quantum computing so far has notbeen achieved. To that end, countries worldwide aremaking substantial strategic investments, amounting tobillions of dollars, to secure an early lead as quantum“Quantum computing is complex and can’t be turned onovernight. Starting early is the surest form of success for
CIOs on their quantum journey,” explains Chirag
Dekate, VP Analyst at Gartner.

2023 – moving from Quantum Advantage
to Quantum Economic Advantage

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innovation pioneers, driven by the potentially transformative
opportunities offered by quantum technologies.
Concurrently, venture capital funding for early-stage
quantum technology firms focused on commercial
solutions is experiencing unprecedented growth.
“Pursuing a share of that value, in 2022 investors poured$2.35 billion into quantum technology start-ups, which
includecompanies
inquantum
computing,communications, and sensing. The total edged out 2021’s
record for the highest annual level of quantum technology
start-up investment. In fact, four of the biggest deals in
the 2000s closed last year. -- McKinsey, April 24, 2023

Nevertheless, McKinsey has identified critical obstacles
impeding the rapid development of quantum solutions forreal-world business problems. Foremost among thesechallenges are the exorbitant costs and limited availabilityof quantum computers and the sophisticated infrastructurenecessary for supporting commercial research.
Additionally, building the required digital infrastructure,encompassing quantum algorithms and hybrid softwarethat leverage both quantum and classical computers,
poses significant difficulties in terms of time, complexity,and expenses. Furthermore, acquiring access to quantum
talent and managing the associated costs remain
significant barriers, along with fostering collaboration
between researchers to expedite problem-solving
capabilities.
Consequently, businesses must take immediate action tosecure an early position in the race for quantum economic
advantage, as the risks of falling behind could have severe
repercussions for their organizations. Thanks to DistriQ,companies all over the world can now address theses
opportunities.

Not all Quantum Innovation Zones orHubs are created equal.
At DistriQ, the Quantum Innovation Zone in Sherbrooke,Quebec, Canada, we recognized the immense strategic
potential of quantum technologies. However, they went
beyond mere recognition and understood that to harness
this potential, it was essential to establish a comprehensive
framework that encompasses the entire innovation chain,spanning from academic ideation to commercial productdevelopment. DistriQ recognized the importance of not
only identifying these unique stages but also establishinga supportive infrastructure to address the key challenges
highlighted by McKinsey. By doing so, they empower
quantum entrepreneurs with the necessary resources andcapabilities to develop their solutions more effectivelyand efficiently. DistriQ's holistic approach ensures that
innovation is not only nurtured but also supported
throughout all stages of its evolution, fostering a thriving
quantum ecosystem in which ideas can flourish andtransform into impactful real-world solutions.
The result is a Quantum Innovation Zone unlike any otheron the planet.
DistriQ distinguishes itself through its strategic approach
to fulfilling its purpose. The key to ensuring the long-term
success and growth of DistriQ lies in its focus ondeveloping ground-breaking quantum solutions that
directly address real business challenges, not theunderlying quantum research and development – this
aspect is diligently addressed by academia, providing afundamental added value in training the next generationof highly qualified individuals. As these successes
accumulate, a thriving community of quantum innovationcompanies will emerge, alongside an ecosystem ofsupporting organizations that cater to the increasing
demands of the wider world. The critical factor forachieving this success is the establishment of an earlystrategic position, designed to meet the needs of key
stakeholders and foster accelerated growth—a vision that
DistriQ has precisely implemented.
Who are the constituents that comprise DistriQ, and whatis the value proposition that unites them into a singularand strategic quantum force unlike any other on theplanet?

Courtesy from DisitriQ
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【スポット研究】Does your business have quantum strategy?

Clients – Global companies
DistriQ's clientele are Global organizations, keenly
seeking the strategic advantages offered by quantumsolutions. Reflecting on the recent disruptions caused by
the abrupt rise of AI, many of these organizations still
navigate the ripple effects of being caught unprepared. In
boardrooms across the globe, the looming specter ofquantum technologies has thrust a critical question into
the spotlight: how are these organizations preparing forthe opportunities and risks inherent in this new quantum
landscape?

These centres are painstakingly designed to equip clientand partner research teams with state-of-the-art quantum
technologies and a digital infrastructure, within acollaborative work environment.
This setup not only accelerates the development ofsolutions being created by quantum start-ups, but also
fosters collaborative initiatives and subgroups focused on
resolving client challenges – providing strategic andlucrative quantum economic advantages to early movingclients.

Partners – quantum technology companies
Considering the challenges presented by McKinsey, how
do these global organizations surmount the obstacles ofaccessibility, costs, and time delays in establishing acommercial quantum research center? How do they
develop the necessary algorithms for quantum and hybrid
computing, and find the scarce talent required to deliveron these endeavours?
DistriQ - Quantum Innovation Zone is on the verge ofcompleting the world's first business focused quantum
innovation centre, set to open its doors in early fall 2023.
This ground-breaking facility spans an expansive 50,000
square feet and will stand as the most comprehensive andextensive commercially focused quantum innovation
center. It will bring together the leading experts, and newquantum technology companies (partners) from aroundthe world and boasts the most fully equipped sharedcommercial quantum development labs. This
commercially oriented quantum center is just one ofseveral planned quantum innovation centres in the Zone
aimed at supporting the growing influx of quantum startups eager to leverage the infrastructure and collaboration
opportunities provided by DistriQ.

As highlighted in this article, quantum start-up partners
face the challenge of accessing expensive and hard-tofind commercial quantum research infrastructure. The
quantum innovation centre, equipped with office spaces
for teams, effectively addresses these challenges, andserves as a robust platform to expedite the development ofinnovative technologies through collaboration.
When start-ups collaborate to solve customer challenges,
they cultivate profound relationships that fast-trackproblem-solving. These partnerships bridge the gap
between different start-ups, resulting in comprehensive
solutions that address customer needs more effectively.
This synergy often leads to fresh product offerings andreveals unexplored market opportunities, contributing toan ever-evolving technological landscape.
Working directly with clients also affords start-ups a
unique perspective. It allows them to shape and accelerate
the development of new products based on valuable realworld feedback gathered through technology testing. The
iterative process of testing, feedback, and refinement
leads to offerings that are finely tuned to market needs.
From a financial perspective, revenue from collaborative
projects demonstrates market viability. This can be a key
factor in securing investment for start-ups, enabling themto expand their teams, and negotiate future venture
investments with greater leverage.

Courtesy from DisitriQ

Lastly, brand exposure is another key benefit of working
with clients. By engaging in business challenges for
Global 500 companies alongside peer partners, start-ups
enhance their brand awareness. This not only instills
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confidence in their capabilities but also bolsters theperceived viability of their technologies, attracting futureclients and investors.
In sum, clients function as powerful catalysts for growthin the world of tech start-ups. Through collaboration, realworld testing, revenue generation, and brand exposure,they support and expedite the innovative journey of theseventures, shaping the technological landscape of thefuture.
DistriQ has already filled 80% of the space in its firstquantum innovation centre, with agreements in placewith several industry-leading quantum start-ups,including some from the international, such as Nord
Quantique, PASQAL, Multiverse, 1Qbit, and Qbit
Pharmaceuticals, among others. Plans for the next
quantum centre are already underway.
DistriQ partners already active in Japan.
“A strategic investment that Fujitsu has made in 1QBit
provides significant resources to accelerate its researchand development efforts and drive quantum computing
applications across various industries. Furthermore,
1QBit has enjoyed strategic partnerships with NTT's
Basic Research Lab, renowned pioneer in quantum
research, and its new PHI Lab initiative. These
collaborations have harnessed the collective expertise toadvance quantum computing and AI methods, algorithms,
and hardware devices, unlocking new frontiers inadvanced computing.” --Dominic Marchand, Director of1QBit Sherbrooke.
“Our partnership with Presidio Ventures, of Sumitomo
Corporation, showcases the potential of partnerships
with quantum companies in the Zone to foster thedevelopment of Proof-of-Business to potentially pursue
Quantum Economic Advantage.” --Philippe St-Jean,CEO and co-founder of Nord Quantique.

A World Class Quantum Ecosystem
DistriQ embodies the vision for a sustainable andprogressive quantum ecosystem. It is not a single
organization but a collective of various entities aiming to
make an indelible impact on the planet's future throughthe power of quantum technology. Key elements of thisdiverse ecosystem include academic excellence, state-ofthe-art R&D infrastructure, rich talent reserves, and acombination of private and public funding sources.
· At the heart of this ecosystem is the Institut quantiqueof Université de Sherbrooke, a global beacon for
quantum talent. Built on strong international
collaborations and concerted efforts in quantum
materials, information, and engineering, this uniqueresearch center is perfectly poised to navigate theneeds of the digital age. The researchers at theaffiliated 3IT brings potent forces aroundsuperconducting device fabrication – focussing on
key areas that promise substantial impacts: robotics,sustainable energy, health, digital transformation, andsociety.
· PINQ2 – Platform for Digital and Quantum Innovationof Quebec, is a non-profit organization created by theUniversité de Sherbrooke and the ministère del’Économie, de l’Innovation et de l’Énergie duQuébec (Ministry of Economy, Innovation andEnergy of Quebec) in 2020. Its mission is to support
organizations in accelerating their digitaltransformation, to enhance collaboration, and tosimplify technology transfers between industries andresearch, in addition to training the talents oftomorrow. The PINQ² platform is based onconventional, hybrid and quantum digital solutions,and is accessible to all Quebec companies and to allacademic networks and College Centres for theTransfer of Technology (CCTT).
· DistriQ actively fosters investment for quantum
innovators. It provides critical early-stage support,
attracting investment from diverse sources andenabling local investment partners' leverage. Notably,“The Institut Quantique and Université de Sherbrooke
research team, faculty, university community anddedicated staff represent over 300 people supporting thedevelopment of quantum technologies,” said -- Vincent
Aimez, Vice-Rector, development & Partnerships ofUniversité de Sherbrooke.

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【スポット研究】Does your business have quantum strategy?

the Quantum Studio offers pre-seed funding and a
supportive structure for quantum entrepreneurs.
Quantonation Ventures, with over €100m undermanagement, and Investment Québec, committed tocatalyzing Québec’s economic development, further
bolster the ecosystem.
·Beyond the quantum realm, the ecosystem
encompasses an impressive R&D innovation chain.
An example is C2MI, the crucial bridge betweenapplied research and the swift commercialization ofmicroelectronic components. C2MI aids both small
and large companies in turning their concepts intoreality, shortening the gap between academic researchand industrial production.
“Investment Québec International can support Japanesecompanies who would like to establish a foreign direct
investment in the Zone” Akira Yamaguchi, Director
Japan, Foreign Direct Investment, Investment Québec
International.

Don’t wait for your competitor toestablish an advanced position ofQuantum Economic Advantage…

Mark M.J. Scott – Mark has a successful track record of developing
marketing strategies in the tech industry. Early in his career hedeveloped communication strategies and materials for the CanadianSpace Agency (Microgravity Sciences and RADARSAT) and RollsRoyce Aerospace. He led marketing strategies resulting in the growthof three successful tech companies: Zero Knowledge Systems, anearly pioneer in B2B SaaS (acquired by AppDirect), OptoSecurity adefence and civil aviation security technology, (acquired by a divisionof Toyota Corp.); TrueContext, a B2B SaaS Low Code Application
Platform, where he rapidly grew sales from $500K ARR to $30M+ARR.

お問い合わせJOI 事業企画部
E-mail：bd@joi.or.jp

DistriQ – Quantum Innovation Zone
Mark Scott, Chief Marketing Officer
E-mail: Mscott@distriq.com

ケベック州投資公社
駐日代表
海外直接投資（FDI)山口 晶
E-mail: akira.yamaguchi@invest-quebec.com

In today's rapidly evolving technological landscape, theurgency for business leaders to implement a quantum
plan cannot be overstated. DistriQ sets a new standard forquantum ecosystems, offering a favourable environment
for organizations seeking to resolve compelling businesschallenges and for quantum start-ups to establish apresence to accelerate their innovation.
In addition, Chénier La Salle, Délégué général of Québec
at Tokyo and his team, can help you and any Japaneseorganisations to create partnerships and business
opportunities with Québec’s stakeholders.
<About the authors>
Richard St-Pierre – Richard has held multiple board memberships
and CxO positions for over thirty years, during which time he has
been at the forefront of technology transformations. Richard wasawarded one of the Top 10 Innovators of 2017 by the American
magazine BizBash. Recently, he directed the creation of C2 byassembling cohorts of influential minds resulting in more than $700
million in annual economic impact. During the COVID pandemic,
Richard served as a Strategic Advisor for the Quebec Ministry ofHealth.
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