The Finnish government must push for change in the EU’s use of money

I have been demanding a consistent data strategy from the government for a long time (KL 4 May 2023). It must combine Finland’s strengths in breakthrough technologies, above all in quantum computers, artificial intelligence and other high-performance computing, 6g and microelectronics. The strategy must strengthen cooperation between the public and private sectors, cross administrative boundaries and advance our interests in the European Union.

There’s still work to do. That is shown by the confusion around NATO’s center of expertise.

With a divisive election ahead in the United States, themes on which Republicans and Democrats agree are golden for foreign partners. Senator Lindsey Graham (r) and ambassador Douglas Hickey (d) presented to Finland the artificial intelligence and quantum competence center of NATO. You would think that Finland would be overjoyed when we meet the USA’s requirements for reliability and safety in critical areas.

What else. Defense secretary Antti Häkkänen (kok) rushed to topple the proposal. Prime minister Petteri Orpo (kok) instead announced in parliament that the government is still considering the matter.

Estonia has taken all the joy out of the NATO cyber center, which strengthens the progressive country brand. Maybe Finland will also slowly get its playbook in order. By the end of the year, it is planned to publish both a quantum technology strategy and a broader industrial policy program.

Public power is needed in the initial phase

Quantum computing needs a determined investment by the public authorities for the obvious reason that there is no market for the developing expensive technology – yet. The customers of the first stage are research institutes and universities.

Another justification is security policy. All critical technologies are fundamentally dual-purpose, so they must not fall into the wrong hands. They need to be supported precisely because they have to be limited.

In this world, the physical location of infrastructure matters both in terms of management and geopolitics. The countries in whose territory the chip lines and computing centers are physically located get to define the rules and standards regarding it. Infra rulers can also restrict rival powers’ access to quantum resources within their own territory.

Europe must not be satisfied with being a technology colony. I recently criticized Germany’s plan to shovel 10 billion euros in government subsidies to Intel’s chip factory. When the loss-making company now announced that it would “postpone” the investment for years, Germany will be left empty-handed. My dear colleague Thomas Jarzombek (CDU) has demanded that the state invest in Europe’s own rising stars in the quantum industry.

Mario Draghin the report recognizes the importance of quantum technology for Europe and suggests a substantial increase in funding. The European Parliament also wants to enact a quantum regulation (Quantum Act), which, like last year’s chip regulation (Chips Act), would aim to guarantee sufficiently large investments, common standards and the internal market.

The EU’s use of money must be changed

Why does the United States trust Finland? Because quantum computers are not manufactured anywhere else. The Finnish IQM has implemented six of the world’s 20 quantum computers. Iron is our strength – quantum industry.

Quantum industry is naturally at the core of the EU’s technological sovereignty. Europe must ensure its own ability in a field where it can compete even more evenly with the United States and China than, for example, in artificial intelligence. And what luck that Finland will get the portfolio of technological sovereignty in the future EU Commission.

Commissioner Henna Virkkunen doesn’t even have to go home, as long as the funding share of research, innovations and breakthrough technologies in the EU budget increases. Then Finland always wins.

Chairman of the Commission Ursula von der Leyen has proposed that two thirds of the EU’s next multiannual budget (2028–2035) be dedicated to strengthening competitiveness. Today, two-thirds of EU money goes to regional policy and agriculture. Preparations for this great turn must be started immediately – if only for the reason that we can credibly promote the EU membership of Ukraine, a giant agricultural country.

Since Finland’s next government will not have time to influence the matter, the current government should vigorously push for a change in the direction of the use of EU money. So far, there are no signs of this.

Partnerships make sense

Of course, the quantum industry must not rely on public investments. The technology, which is just emerging, needs to find partnerships that can create practical applications.

The most obvious partners can be found in fields that already use machine learning with high computing power: the pharmaceutical industry, car manufacturing, the financial world. Since the benefits are national economic in the long term, but not business economic in the short term, incentives must be created to encourage cooperation.

Partnerships also make a certain industrial policy sense. Instead of growth companies inevitably ending up in foreign ownership during the scaling phase, they can be Finnish as well.

If we only have enough wisdom, we can be a small superpower in the quantum industry.

Timo Magpie

member of parliament (sd), vice-chairman of the futures committee, Member of Quantum Council, IQM’s international advisory group