Export controls must not stifle quantum innovation, QuIC warns

Image: marina cavazza · euroquic.org

Differences in how European Member States handle export licenses are creating friction for quantum companies as the industry moves toward commercialization, according to a new position paper from the European Quantum Industry Consortium. QuIC’s recommendations directly contribute to the European Commission’s evaluation of Regulation (EU) 2021/821, the EU Dual-Use Regulation and advocate for a balance between security and innovation, the company says. The paper also explores opportunities for greater regulatory reciprocity with trusted partners, suggesting a potential path to easing trade while maintaining safeguards.

QuIC Recommendations for Harmonized EU Quantum Export Controls

QuIC’s recommendations focus on harmonising export control implementation across European Member States, a critical step for companies transitioning to commercial quantum technologies. Differing licensing procedures and processing times currently create friction within the European Single Market, impeding the growth of businesses as they seek to expand internationally. The consortium’s position paper details how these inconsistencies impact quantum companies, advocating for greater consistency in how regulations are applied.

Developed with input from experts within QuIC member organisations, the paper identifies practical improvements to regulatory clarity and international cooperation. The report states the need for a balanced approach. Beyond internal harmonisation, QuIC proposes strengthening trade relationships with trusted partners through improved export authorisations, acknowledging the increasingly global nature of the quantum supply chain and the importance of collaborative research and development.

The position paper also addresses the unique challenges posed by intangible technology transfers, specifically concerning remote quantum computing and standalone quantum algorithms. QuIC argues that clearer guidance is needed to define the regulatory boundaries surrounding these emerging technologies and ensure consistent application of export controls across the quantum value chain, according to the company. This includes computing, communication, sensing and the enabling technologies that underpin them, each facing distinct regulatory hurdles.

Predictable licensing procedures and proportionate compliance requirements are particularly vital for small and medium-sized enterprises (SMEs) and scale-ups, the report emphasizes. These emerging quantum companies often lack the resources to navigate complex regulatory landscapes, and streamlined processes can significantly reduce administrative burdens and support commercial growth. QuIC advocates for a pragmatic approach that recognises the specific needs of these innovative businesses.

The consortium suggests aligning EU quantum export controls with the objectives of the forthcoming EU Quantum Act, envisioning a complementary framework that supports Europe’s technological sovereignty and global competitiveness. QuIC states that the Dual-Use Regulation and the Quantum Act can work in tandem to encourage innovation while safeguarding sensitive technologies, the firm reports. “Europe’s quantum industry needs a regulatory environment that protects sensitive technologies while enabling commercial growth,” the paper concludes, highlighting the importance of finding the right balance between security, innovation and international market access.

The position paper acknowledges contributions from Abhishek Purohit of QURECA, Albert Calsina of IDEADED and Cécile Perrault of QuIC, among others. Special thanks were extended to David Morcuende of QuIC and Ulrich Mans of QuantWare for their leadership in coordinating the effort, demonstrating the collaborative spirit driving Europe’s quantum industry forward.

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The Quant possesses over two decades of experience in start-up ventures and financial arenas, brings a unique and insightful perspective to the quantum computing sector. This extensive background combines the agility and innovation typical of start-up environments with the rigor and analytical depth required in finance. Such a blend of skills is particularly valuable in understanding and navigating the complex, rapidly evolving landscape of quantum computing and quantum technology marketplaces. The quantum technology marketplace is burgeoning, with immense growth potential. This expansion is not just limited to the technology itself but extends to a wide array of applications in different industries, including finance, healthcare, logistics, and more.

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