Source: Microsoft
Headline: Investing in American leadership in quantum technology: the next frontier in innovation
Artificial intelligence has captured the public imagination—and with good reason. It’s transforming how we work, create, learn, and navigate the world. But as AI carries the headlines, we also are on the cusp of another technological frontier: quantum computing. Long the domain of theory, quantum technologies are edging closer to reality, with profound implications for the world and American national competitiveness and security. As basic research and private sector advancements accelerate, a new global race is picking up steam. Now is the time for the United States and its allies to double down and invest in their strengths to claim the quantum frontier.
Quantum technologies harness the mysterious and powerful behaviors of particles at the atomic level, offering unprecedented capabilities in computing, communication, and sensing. A single quantum computer at scale could offer more computing power than collectively exists in all of today’s computers. And like AI, quantum computing not only has the potential to transform entire sectors of our economy, but tackle previous insurmountable problems, opening pathways in science, medicine, and technology. The possibilities for chemistry, drug discovery, materials, energy, and agriculture provide promise in solving some of the defining challenges of our time.
Microsoft’s recent quantum breakthrough adds to the breadth and pace of quantum science innovation. The development of our Majorana quantum chip leverages the unique properties of so-called “Majorana quasiparticles,” creating qubits that are more stable and less prone to decoherence. This approach promises to overcome one of the biggest challenges in quantum computing, enabling the construction of scalable and more efficient quantum systems. We believe it’s the type of advancement that can help accelerate the timeline for practical quantum applications.
Countries around the world understand the criticality of quantum technology to their own economic competitiveness and security. During his confirmation hearing earlier this year, Michael Kratsios, the White House Director of the Office of Science and Technology Policy (OSTP), rightfully emphasized that the shape of the global order “will be defined by whomever leads across AI, quantum, nuclear, and other critical and emerging technologies.” It is no surprise that over the past decade, governments around the world have poured resources into the fiercely competitive global quantum race. China, in particular, seeks to challenge American leadership in quantum through significant investments in infrastructure, research, and workforce skilling.
The Trump administration’s long-standing leadership in quantum science
Since the earliest days of quantum sciences, the United States has led the research and development of this technology. While most believe that the United States still holds the lead position, we cannot afford to rule out the possibility of a strategic surprise or that China may already be at parity with the United States. Simply put, the United States cannot afford to fall behind, or worse, lose the race entirely.
The Trump administration understands well the national imperative and the risks of falling behind. During his first term, President Trump set the foundation for sustained leadership in the quantum sciences. This included the passage of the National Quantum Initiative Act in December 2018 (currently up for reauthorization), which accelerated quantum research and development. The Trump administration inaugurated the National Quantum Coordination Office (NQCO) within the OSTP. This office was empowered to oversee interagency coordination, serve as a central point of contact for federal quantum activities, and promote public outreach and early application of quantum technologies. These initiatives underscored the administration’s commitment to maintaining the American leadership and fostering quantum innovation.
Last month, President Trump emphasized that actions during his first term “established the foundation for national quantum supremacy” and tasked newly confirmed Director Kratsios to “blaze a trail to the next frontiers of science.” Meeting the moment demands another round of decisive action—one that must be rooted in the very principles that gave rise to the past century of American primacy in the sciences.
Harnessing America’s heritage of scientific innovation
For the last 80 years, the United States has led the world with its scientific and technological prowess, resulting in transformative products and capabilities. This federally funded science and technology ecosystem is essentially America’s golden goose. It generates immense wealth and benefits for society by supporting scientific progress that in turn drives economic growth, extends life expectancy, and boosts national power. In many respects, it is the envy of the world.
The United States has not always prioritized federal funding in scientific research. In fact, before World War II, the United States played a minor role in supporting research at U.S. colleges and universities. Instead, research institutions relied on philanthropic endowments or funding from private companies, often with vested interests. “Curiosity-driven” science, a cornerstone of discovery and innovation, was stymied in the process.
This limitation changed dramatically after World War II when the federal government recognized the strategic importance of scientific research. In November 1944, thinking ahead to the end of the war, President Franklin D. Roosevelt wrote to Director of the Office of Scientific Research and Development, Vannevar Bush, asking how the successful application of scientific knowledge to wartime problems could be carried over into peacetime—and requesting recommendations on a national policy for science. This initiative led to the creation of many of the research institutions and funding mechanisms that have driven American innovation for decades.
For 80 years, American innovation has been driven by two critical ingredients. The first is basic research. This is based on curiosity rather than a profit motive, supported by federal funding, and pursued mostly by scientists at our universities and national labs. The second is private sector investment in product development by companies of all sizes. The United States, more than any other country, has mastered the process of bringing these together.
This combination has led to spectacular discoveries with profound implications for our health, safety, and quality of life. Innovative cancer treatments, the laser, MRI, touchscreens, GPS, the internet, and even artificial intelligence are just a few of the successes from federal investment in research. These innovations have not only advanced science and improved lives but have also created entirely new industries and millions of jobs.
The United States will need this extraordinary combination of resources more than ever to sustain its quantum leadership, especially as China invests more in its own quantum work.
China’s focus on gaining quantum supremacy
Since at least 2000, China has made quantum technology a cornerstone of its national technological strategy and has invested heavily to assert dominance in the quantum sciences. Over this time, China’s public spending on overarching R&D has grown 16-fold, placing it second in the world behind the United States for total spending. It surpassed Japan in 2009 and the combined R&D expenditures of the European Union countries over a dozen years ago, in 2013.
The scale and focus of China’s efforts continue to accelerate. Last year alone, China announced a 10 percent increase in R&D with public reports indicating that China has increased government spending in quantum research to approximately $15 billion. This represents more than double what the European Union has pledged in quantum spending and eight times what the U.S. government previously planned to allocate. And earlier this year, China launched a government-backed venture fund worth 1 trillion yuan (approximately $138 billion) to support high-risk, long-term projects across various sectors, including quantum computing.
In addition to state-directed quantum R&D funding, China has prioritized quantum infrastructure and domestic capabilities. The creation of the National Laboratory for Quantum Information Sciences, backed by over $1 billion, alongside a separate $10 billion investment in key projects such as the Micius satellite[1], and the Beijing–Shanghai backbone, underscores China’s ambition to dominate quantum technology—with the Chinese government hoping this institutional infrastructure will provide it with a significant advantage in developing and deploying quantum technologies at scale.[2] Moreover, during the last five years, China has methodically nationalized quantum efforts to pursue strategic, government-coordinated efforts that transition scientific breakthroughs into practical applications.[3]
The importance of the federal research triad
Given these coordinated efforts in China, sustained American quantum leadership will require continuing support across the federal government. Coordinated in substantial part by OSTP, American strength rests in substantial part on three federal agencies that collectively serve as the driving force of this leadership. The Department of Defense (DOD), the Department of Energy (DOE), and the National Science Foundation (NSF) possess the legislative authority and institutional capability to advance quantum technology research and development under existing Congressional mandates. This “research triad” provides a resilient science and technology research infrastructure as a bulwark against threats to our technological superiority. Indeed, perhaps more than any military capability, this American research triad is largely responsible for the preeminence of the United States’ global leadership over the past century.
Each prong of this triad uniquely and collectively contributes to ensuring American technological superiority.
For example, DOD, through the military labs and defense industrial base, provides a strong and reliable foundation for military readiness and battlefield dominance. There are several notable examples of research efforts funded by DOD for military applications that eventually found enormous civilian uses—the internet, GPS, and voice recognition are among countless other breakthrough technologies.
DOE, through the network of national laboratories and university partnerships, provides a vital link to state and local communities across a range of national security priorities, such as maintenance of our strategic weapons (e.g., our nuclear weapons arsenal), energy security and innovation, and high-performance computing.
And the NSF is perhaps the most robust frontline agency that supports workforce development goals in addition to promoting hugely important translational research through federal grants. Specifically, the NSF provides critical incentives for U.S. students to enter STEM fields from early education through post-graduate schooling by way of subsidizing their apprenticeships in research laboratories in colleges and institutions so they can learn from leading scientists and engineers who otherwise would not have the funds or resources to take on students.
Three strategic actions to ensure American quantum leadership
Winning the quantum race will require us to deploy and reinvest in our greatest American strengths: our intellect, our curiosity, and our drive to innovate and build. All these qualities are carried forward by the three great and enduring federal agencies that comprise our research triad. We will need to activate all three to succeed in the race to develop next-generation quantum technologies. More specifically, to win this race, we must deploy our research triad in three key areas: driving innovation through robust government-funded quantum research and innovation; developing quantum talent and a skilled quantum workforce; and directing efforts to secure the quantum supply chain.
These strategic actions—described more fully below—will require DOD, DOE, and the NSF to work together to ensure our competitive edge in the face of intense global competition.
1. Increase funding for quantum research and development
To ensure leadership in quantum research, the U.S. government should consider prioritizing federal funding in quantum technologies through a directed approach. A survey by the Information Technology and Innovation Foundation (ITIF), a Washington-based think tank, suggested that China’s centralized funding approach might offer comparative advantages over the fragmented approach in the United States, where competing priorities can hinder systemic progress.
To start with, the United States cannot win the quantum race without significant and sustained federally funded quantum research. While federal funding in quantum sciences more than doubled between 2019 and 2022 (from $456M in FY 2019 to $1,041M in FY2022), this funding started to decline during the last three years of the Biden Administration (from $1,041M in FY2022 to $998M in President Biden’s requested budget authority for FY25).[4] This means that the United States is not keeping pace—either with itself or with our global competitors.
The first and most important step this Administration must take is fully funding research and grant programs in the basic and fundamental sciences across DOD, DOE national labs, and the NSF. As noted above, this research triad has been largely responsible for the sustained period of American technological leadership. We cannot make strides in the quantum race without reinvesting and building on these critical capabilities.
Specific to the quantum sciences, Congress can begin by reauthorizing the National Quantum Initiative Act and this administration should work to ensure that all its programs are fully funded. This must include the Quantum Leap Challenge Institutes funded through the NSF, as well as the important work being led by the DOE’s National Quantum Initiative Centers. These initiatives were established through the National Quantum Initiative Act and are already demonstrating results, with each dollar of federal funding typically leveraging additional private sector investment. Expanding these proven programs would spur innovation in every region of the country while advancing American leadership in critical technologies of strategic importance.
But even as we expand federal funding for the basic sciences and quantum research, the administration must simultaneously increase funding for government evaluation and validation programs that are focused on identifying scientific breakthroughs and supporting their continued development. DARPA’s Quantum Benchmarking Initiative (QBI) is the nation’s flagship program and must be expanded as public and private sector investments in quantum technology begin to bear fruit and achieve tangible results.
2. Promote workforce and talent development
Winning the quantum race requires the world’s best talent. While the United States and its institutions—both public and private—have thus far been able to leverage unique, highly skilled technical talent, the state of the domestic talent pipeline is alarming and requires immediate action. At a topline level, the U.S. science, technology, engineering, and mathematics (STEM) workforce is comprised of 36.8 million people of which foreign-born individuals make up 43 percent of doctorate-level scientists and engineers. That number is likely to increase given the wide gap between the United States and global competitors at the undergraduate level. In 2000, for example, the United States awarded 900,000 undergraduate degrees in STEM fields, compared to 2 million degrees in China and 2.5 million in India.[5]
It is therefore no surprise that, when including all education levels, India and China were the leading birthplaces of foreign-born STEM workers in the United States, accounting for 29 percent and 12 percent respectively. The good news is that many international students have chosen to stay in the United States after completing their studies, contributing to the country’s technology innovation ecosystem. For example, according to the 2024 State of U.S. Science and Engineering Report, from 2018-2021, temporary visa holders—primarily from China or India—represented 37 percent of U.S. science and engineering research doctorate recipients. Over 70 percent of these doctorate recipients expressed an intention to reside in the United States following graduation. The same report indicated that when these doctorate recipients were surveyed in 2021 across all countries of citizenship and degree fields, the 5-year stay rate for those who were on temporary visas at graduation was 71 percent and the 10-year stay rate was 65 percent.
In the quantum fields specifically, the number of quantum job postings globally outstrips qualified talent by as much as three to one. Currently, the European Union has the highest concentration of quantum talent, followed by India, China, and then the United States.[6] The United States faces a critical shortage of quantum-ready talent, particularly as other nations invest significant resources in their own national quantum programs and quantum research capabilities. Without concerted action by the federal government to address this skilling gap, even the most advanced quantum research programs will fail to translate into practical capabilities or economic benefits.
The Trump administration can begin by launching a series of concerted efforts to expand the domestic pipeline. One historical analog is the National Defense Education Act of 1958, enacted in response to the Sputnik challenge. The NDEA provides a useful precedent for how targeted federal investment in technical education can rapidly address strategic workforce gaps.
For starters, comprehensive STEM education programs must be introduced at all levels of education, from primary schools to universities, to develop a robust domestic pipeline of talent. Research has shown that elementary and secondary education in mathematics and science are the foundation for entry into postsecondary STEM majors and STEM-related occupations. To develop this pipeline, the Trump administration can leverage the existing strength and reach of the NSF. NSF programs, such as those specifically focused on the quantum sciences like the National Q-12 Education Partnership, are ready-made vehicles to promote awareness of STEM and quantum technology in K-12 institutions.
Second, the United States can provide grants for quantum research and education to encourage students to pursue careers in this field, focusing not only on traditional four-year colleges but also community colleges and vocational programs that are often entry points for many Americans pursuing higher education. In 2021, the U.S. government supported 15 percent of full-time STEM graduate students (mostly doctoral degree students), a decline from the most recent high of 21 percent in 2004. Here, again, the administration should activate and expand NSF research initiatives, including the NSF Research Experiences for Undergraduates (REU) and Research Experiences for Teachers (RET) programs,[7] as well as those focused specifically on the quantum sciences such as the Next Generation Quantum Leaders Pilot Program envisioned by the CHIPS and Science Act. The National Quantum Virtual Laboratory is another promising initiative that would create shared research infrastructure and make quantum education more accessible to students and researchers across the country. Collectively, these national incentives enable the best and brightest of the world to conduct their cutting-edge research in the labs of the United States as opposed to the labs of our adversaries.
Beyond looking to the NDEA to attract and develop the unique talent to lead the world in quantum development, the Trump administration can focus on three additional priorities.
First, building on the themes described above, the administration should address the current talent gap in the current STEM workforce. Although there is no substitute for graduate degree programs to drive innovation in the quantum sciences, the broader quantum ecosystem would benefit greatly from an increase in the STEM workforce. To this end, the administration can again utilize the reach of the NSF to promote adult education, retraining, and professional development programs to facilitate current workers’ transition into quantum-related roles.
Second, research universities also play a pivotal role as powerful economic engines in their communities, often ranking among the largest employers in their congressional districts while generating high-tech spin-off companies that create well-paying jobs. The presence of federally-funded research and development centers (FFRDCs) and university-affiliated research centers (UARCS)—which are not-for-profit organizations established to meet special long-term engineering, research, development, or other analytic needs—also attract private sector investment and create innovation clusters. But most importantly, these entities lead to organic skilling initiatives to up-level the existing labor market.
Finally, with regard to foreign talent, it’s imperative that the United States continue to attract the world’s best and brightest. This requires developing fast-track immigration pathways for highly skilled individuals with unique technical expertise in the quantum sciences, and expanding the number of visas available to employ quantum STEM PhDs trained at American institutions. This also requires the United States to promote, coordinate, and potentially fund international research initiatives with strategic allies to facilitate cross-pollination of expertise and develop the talent pool within a sphere of select, like-minded countries.
This includes deepening ties with strategic allies to advance our collective success in the quantum race. Denmark, for example, has continued the great legacy of Niels Bohr by creating a vibrant hub for quantum innovation—one that benefits not only Denmark, but the entire Nordic region and the United States. Through a steady, long-term strategy that has brought together the government, academic, private sector, and startup communities—including multilateral institutions, such as NATO’s Deep Tech Lab-Quantum hosted at the Niels Bohr Institute—Denmark has become a hotbed for quantum talent, as well as quantum research and early commercialization. For our part, Microsoft has benefited greatly from this rich ecosystem of talent and innovation through the Microsoft Quantum Lab on the outskirts of Copenhagen, where later this year we will expand our presence by opening a new state-of-the-art quantum research center.
3. Ensure supply chain security for quantum technologies
Securing our leadership in quantum technology requires a reliable supply chain and onshoring of key capabilities within the United States. This is a complex task that cannot be achieved without direct action by the federal government that tightly aligns to specific strategic objectives. To that end, the Trump administration could task the National Quantum Initiative Advisory Committee or another board of advisors to develop a detailed national strategy and execution plan aimed at de-risking the quantum supply chain. This strategy would focus on making the supply chain more independent, increasing the availability of quantum components, lowering prices, and introducing incentives to encourage the private sector to make the necessary investments in the United States for chip fabrication and assembly.
More specifically, the U.S. strategy to secure the quantum supply chain must include at least three critical action items. First, the federal government can take a direct role through the Departments of Commerce and Energy to promote the diversification of essential quantum components and materials. This can be achieved through government-organized long-term purchase agreements and the deployment of strategic capital for widely needed components such as dilution refrigerators, superconducting cables, amplifiers, circulators, attenuators, lasers, and fiber at frequencies relevant for quantum technologies.
Second, the administration should work to establish specialized facilities dedicated to the fabrication, packaging, prototyping, and manufacturing of quantum systems and their essential components, such as cryogenic systems, lasers, and advanced chips. By developing, testing, and ultimately producing essential components domestically, this initiative would reduce our dependence on foreign sources and work to mitigate the risk of supply chain disruptions.
Finally, and most importantly, it is imperative to onshore domestic manufacturing of advanced technologies tailored for quantum devices and additional capabilities needed by American companies and research organizations. This includes design and fabrication of advanced lasers and optics, amplifiers, and advanced chip design and fabrication. It also includes critical capabilities for domestic cryogenic electronics fabrication and design, advanced metrology to characterize chips for quantum computing, and advanced packaging and 3D integration for quantum components.
The way forward
At the start of his second term, President Trump signed an executive order to advance American leadership in artificial intelligence. President Trump should now do the same with quantum by setting national priorities that support robust funding, promote a skilled workforce, and protect supply chain security through incentivized onshoring. Taken together, these strategic actions will not only bolster our nation’s security and competitive edge against competitors and adversaries, but it will also drive innovation and economic growth at home towards a new frontier of American prosperity.
[1] Karen Kwon, “China Reaches New Milestone in Space-Based Quantum Communications,” Scientific American, June 29, 2020, https://www.scientificamerican.com/article/china-reaches-new-milestone-in-space-based-quantum-communications.
[2] One likely goal of these massive projects is undoubtedly to signal that the People’s Republic of China backs these investments, thereby attracting and retaining skilled professionals. According to the 2024 State of U.S. Science and Engineering Report developed, a regular report mandated by Congress, China is the top overall producer of science and engineering publications and international patents. For decades, the United States was the unparalleled leader in science and engineering doctorate awards until 2019 when we were surpassed by China. That being said, the United States remains the destination of choice for internationally mobile students, hosting 15% of all international students worldwide in 2020. National Science Board, The State of U.S. Science and Engineering 2024, March 2024, https://ncses.nsf.gov/pubs/nsb20243/talent-u-s-and-global-stem-education-and-labor-force.
[3] Hodan Omaar and Martin Makaryan, How Innovative is China, Information Technology & Innovation Foundation, September 2024, https://www2.itif.org/2024-chinese-quantum-innovation.pdf.
[4] National Science and Technology Council: Subcommittee on Quantum Information Science, National Supplement to the President’s FY 2025 Budget, April 24, 2025, https://nqi.gov/supplement-fy2025-budget.
[5] National Science Board, “The State of U.S. Science and Engineering 2024,” March 2024, https://ncses.nsf.gov/pubs/nsb20243/talent-u-s-and-global-stem-education-and-labor-force.
[6] McKinsey & Company, “Quantum Technology Monitor,” April 2023, https://www.mckinsey.com/~/media/mckinsey/business functions/mckinsey digital/our insights/quantum technology sees record investments progress on talent gap/quantum-technology-monitor-april-2023.pdf (defining quantum talent as “[g]raduates of master’s level or equivalent in 2019 in biochemistry, chemistry, electronics and chemical engineering, information and communications technology, mathematics and statistics, and physics.”).
[7] National Science Foundation, “NSF Research Experiences for Undergraduates,” accessed April 24, 2025, https://www.nsf.gov/funding/initiatives/reu; National Science Foundation, “NSF 24-503: Research Experiences for Teachers in Engineering and Computer Science,” accessed April 24, 2025, https://www.nsf.gov/funding/opportunities/research-experiences-teachers-engineering-computer-science/nsf24-503/solicitation.
Tags: AI, quantum, STEM, Technology, United States