Washington state is a leader in Quantum Information Sciences (QIS). With a rich ecosystem consisting of an established innovation hub, exemplary academic institutions, and home-grown technologies that are driving significant economic growth, and as home to the headquarters of major technology companies investing heavily in QIS, Washington continues to be a catalyst for forward progress in this emerging technology.

Recently, the Washington Technology Industry Association (WTIA) released its new report, Quantum Information Sciences (QIS) in Washington state. Prepared by Moonbeam for the association’s Advanced Technology Cluster, the report solidifies Washington’s established expertise in quantum computing and highlights opportunities for specialization, QIS workforce expansion, and collaboration with other quantum clusters around the country. 

Here is an overview of grant funding in Washington state, as highlighted in the report:

Washington state ranks 10th in the nation in grants received. The state lags behind other innovative tech ecosystems, such as Massachusetts, California, Illinois, and Maryland. There is room for improvement when it comes to federal Small Business Innovation Research (SBIR) and contract awards. According to the WTIA report, Washington can improve its position with strategic focus, leveraging the strengths of its existing economy to advance QIS. There is an opportunity to bridge existing scientific expertise in the region with current competencies in enterprise technology, while also helping the Small Business Administration achieve its goals of technology commercialization. Specifically, we can attract more government research, development, and commercialization support to the region through programs that help connect existing areas of expertise in the state (e.g., enterprise technology, cloud, SaaS, productivity tools, health solutions, etc.) with emerging quantum applications, government and industry need, and programming to help founders improve SBIR application quality. 

As illustrated in the chart below, Washington received 37 grants totaling $31.96 million from Federal fiscal years 2008-2022.

Microsoft and three state universities—University of Washington, Washington State University, and Western Washington University—received grant funding. 

However, Washington lags in SBIR funding and federal contracts. Washington companies and institutions received just $8.2 million in SBIR awards between Federal fiscal years 2008-2022, ranking it No. 14 in states that received SBIR/Small Business Technology Transfer (STTR) awards. 

In the context of the report, eight Washington state-based companies received SBIR/STTR funding in recent years for a variety of QIS-related innovations:

1. Aculight Corp.
2. Dotquant
3. Eagle Harbor Technologies
4. Hummingbird Precision Machine
5. Nion
6. NonLinear Materials
7. nLight Photonics
8. Paradigm Optics

Separate from grant dollars, a number of noteworthy individuals and organizations have invested in QIS companies in Washington and the Pacific Northwest, including Bill Gates, Jeff Bezos, Microsoft, Amazon, and the Bill and Melinda Gates Foundation. The majority of the investments focused on the health, materials, and software sectors.

Moreover, slightly more than 50% of the capital invested in the region came from venture capital or angel investors, as illustrated in the table below.

To further grow its leadership in QIS innovation, Washington must focus on:

• Non-Dilutive Investment Attraction: Non-dilutive investments are investments in companies where investors do not receive equity, such as grants or fee-for-service contracts where the company retains their intellectual property. Programming to help quantum entrepreneurs successfully apply for and win grants to finalize research and commercialize quantum solutions will accelerate this sector.
• Founder Attraction and Development: The Advanced Technology Cluster (the Cluster) should support efforts to attract global quantum startups to Washington state.

To accomplish these goals, the WTIA QIS report recommends the following next steps:

• WTIA Startup Programs: WTIA already produces resources for startups and should continue to promote these resources to advanced technology startups.
• SBIR/STTR Support: The Cluster should determine ways to provide more support for non-dilutive funding, such as building relationships with agencies that provide these funds, providing information on funding opportunities to relevant startups, and finding ways to support applications.
• Entrepreneurship and Commercialization Training: The Cluster should explore partnerships with academia in the region to promote more entrepreneurial training for individuals researching advanced technologies like quantum and blockchain. These could include:
  • Introductions: The Cluster continues to make introductions to relevant investors, service providers, potential partners, and others for startups.
  • Coaching and Mentorship: 100+ volunteer mentors already provide support for startups. Going forward, the Cluster looks to recruit additional mentors and coaches with expertise in blockchain and quantum.
  • Accelerators: The Cluster looks to partner with existing accelerators, and in the future, build our own focused on advanced technologies.

Download the full report for additional details on how Washington is making strides to expand its leadership in quantum computing. This report was supported by a U.S. Economic Development Administration grant administered by the Washington State Department of Commerce.