The first quarter of 2025 saw quantum startups worldwide secure over $1 billion in funding, highlighting a global surge in deep tech investment. Companies like QuEra Computing, Quantum Machines, and PsiQuantum are attracting major backing from governments and private investors, signifying a global race towards technological supremacy. While the United States, Israel, and Australia are making bold moves, Canada must also act decisively to strengthen its tech sector and secure its place in the future economy.
1. Foster Stronger Public-Private Partnerships
One key driver of growth in other countries has been robust collaboration between governments and private enterprises. For example, PsiQuantum, headquartered in Palo Alto, received over $500 million in funding support from the Australian government to build a quantum computer in Brisbane. Canada can replicate this success by designing incentive programs, offering matching grants, and co-investing in large-scale tech infrastructure projects. Strategic public investments signal confidence to the private sector, encouraging venture capitalists to follow suit.
2. Expand National R&D Funding
Quantum technology, AI, biotech, and clean tech all require significant investment in basic research. To remain competitive, Canada must increase funding to universities, research labs, and innovation hubs. Programs like the Strategic Innovation Fund and the Natural Sciences and Engineering Research Council (NSERC) grants should be expanded and targeted toward emerging sectors. Furthermore, creating dedicated funds for commercialization ,not just research ,would bridge the gap between lab discoveries and real-world products.
3. Attract and Retain Global Talent
The competition for scientific and engineering talent is global. Countries that succeed in attracting the best minds will dominate the next era of technological development. Canada already has a favorable immigration framework, like the Global Talent Stream program. However, more aggressive strategies, such as special visas for quantum researchers, AI specialists, and biotech innovators - can give Canada an edge. In addition, investments in domestic STEM education, starting from the K-12 level, will ensure a strong homegrown pipeline.
4. Create Specialized Tech Zones
Another lesson from the quantum boom is the creation of specialized technology zones. Australia’s decision to locate PsiQuantum’s facility at Brisbane Airport, supported by infrastructure and regulatory support, is a powerful example. Canada could develop similar “Quantum Valleys,” “AI Parks,” or “Green Tech Corridors” near cities like Toronto, Montreal, Vancouver, and Waterloo. Offering tax breaks, streamlined permitting, and ready-to-use infrastructure would attract startups and multinational firms alike.
5. Promote Venture Capital Growth
Startups thrive in environments where capital is abundant and accessible. While Canada has seen an increase in venture capital activity in recent years, it still lags behind the U.S. and parts of Europe. To remedy this, the government could offer tax incentives to investors in early-stage tech companies and set up public venture funds focused on high-risk, high-reward sectors. Encouraging pension funds and institutional investors to allocate more to venture capital would also fuel the ecosystem.
6. Strengthen International Collaboration
Technological leadership is increasingly dependent on international cooperation. Canada should aggressively pursue partnerships with quantum hubs in the U.S., Europe, Israel, and Asia. Bilateral research agreements, joint ventures, and tech transfer programs would open new opportunities for Canadian firms to scale globally. Participation in international technology standards bodies would also help Canada shape the rules of tomorrow's digital economy.
Conclusion
The surge of over $1 billion in quantum startup investment in just one quarter demonstrates that the global technology race is accelerating. Countries willing to invest boldly and think strategically will reap enormous economic and geopolitical rewards. Canada has the foundational strengths , world-class universities, a multicultural society, and political stability , to lead. By expanding R&D investment, fostering public-private partnerships, creating tech hubs, and nurturing talent, Canada can supercharge its technology sector and secure a prosperous future.
