What Issues Does the Nascent Quantum Computing Sector Raise for the French Economy?

2026-05-22T00:00:00+02:00

Quantum computing is of growing interest in scientific and economic circles, with France’s Michel Devoret being awarded the Nobel Prize in Physics in 2025, while Alain Aspect received the accolade in 2023.

Quantum computers are currently still at the prototype stage, and there are considerable lingering uncertainties about the conditions of their maturity. However, the potential associated productivity gains could be significant, with foresight methodologies – that remain uncertain – indicating an eventual 8% increase in France’s GDP.

These benefits will be reaped to greater extent in some sectors than in others, particularly those in which such technology will have the most powerful applications (e.g. logistics, finance, pharmaceuticals, chemicals). The potential of quantum computing will only be realised if businesses from these sectors adopt it.

Innovation in quantum computing is currently driven by major digital tech firms and a thriving network of start-ups. The dynamic between these stakeholders spurs competitiveness and investment. However, moves towards consolidation are already underway, with several recent acquisitions. In the long term, this trend could create barriers to entry and foreclosure effects similar to those seen in the AI computer chip sector, restricting the market’s competitiveness and slowing down the technology’s dissemination.

France boasts solid assets within the quantum computing sector, including world-class laboratories, one of the strongest patent portfolios in Europe (relative to GDP) and several leading start-ups. The National Quantum Strategy, launched in January 2021 and financed under the France 2030 Investment Plan, was set up to bolster this ecosystem. There are nevertheless still major obstacles, such as a financing gap that is widening with non-European start-ups.

Which Competition Policy Should be Adopted to Support Growth in France and Europe?

2026-02-12T00:00:00+01:00

Competition on a market drives down prices, improves quality and diversifies the supply of goods and services for the benefit of households and businesses. In addition to these effects on each product or market, healthy competition is key for economic growth (e.g. through business creation, see Chart). A lack of competition in the upstream value chain can increase the cost of intermediate goods for downstream businesses. Moreover, competition drives selection of the most efficient businesses and encourages them to stand out by investing and innovating.

Nevertheless, too much competitive pressure can sometimes harm businesses. By reducing markups, it can limit their ability to finance investment and curb the incentive to innovate when the future return on an innovation is lower. In some sectors, such as tech and manufacturing, moderate concentration can generate economies of scale through lower production costs from increased production volumes, support R&D and increase competitiveness.

Competition policy is currently being upgraded and is widely seen as necessary by stakeholders. The review of the EU merger guidelines launched by the European Commission aims to give more weight to innovation, sustainability and resilience criteria in merger cost-benefit analysis. By better accounting for efficiency gains associated with consolidation, some mergers that increase competitiveness and innovation could be more easily approved.

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What Issues Does the Nascent Quantum Computing Sector Raise for the French Economy?

Which Competition Policy Should be Adopted to Support Growth in France and Europe?