Nordic-Baltic quantum strongholds

This chapter presents six domains in which the Nordic-Baltic region shows distinct potential to lead in the development and application of quantum technologies. Based on ecosystem analysis, three have been identified as strongholds — areas where the region already combines world-class research, specialized infrastructure, and growing commercial activity. These include superconducting quantum computing, quantum photonics and optics, and quantum life sciences.

Alongside them, three additional domains — defense, advanced manufacturing, and finance — demonstrate strong industrial and academic capabilities and are emerging as promising candidates for future regional leadership. While current quantum activity in these sectors remains limited, they offer clear opportunities for strategic growth through cross-border collaboration and targeted investment.

Strongholds are key areas of innovation and business where regional collaboration creates added value, representing a strategic domain in which the Nordic countries possess a competitive edge. They can lead internationally through innovation, collaboration, and sustainable growth.

The Nordic-Baltic region has emerged as a global stronghold in superconducting quantum computing, combining deep academic expertise, industrial leadership, and robust infrastructure to advance this pivotal technology.

Finland stands at the forefront in commercial systems with a vertically integrated ecosystem. IQM Quantum Computers, a spin-out from Aalto University and VTT, has deployed Europe’s first 50-qubit superconducting quantum computer, located at VTT’s Micronova facility in Espoo. This system is accessible to researchers and companies via the VTT QX quantum computing service, facilitating application development in areas like material modeling, optimization, and artificial intelligence.

Recently, IQM and VTT signed a contract for a joint development project and delivery of a 150-qubit computer by mid-2026 and a 300-qubit computer in late 2027. IQM computers are operating within the cryogenic infrastructure created by Bluefors, a Helsinki-based company that is the world leader in cryogenic systems essential for superconducting qubit operations. Their KIDE cryogenic platform is designed to house over 1,000 qubits, supporting the scalability of quantum processors.

In addition to these internationally recognized leaders, the Nordic superconducting quantum ecosystem is increasingly supported by a dynamic group of promising startups. Companies like Arctic Instruments, Low Noise Factory AB, ScalinQ AB, QET Sweden AB, and Sweden Quantum AB are emerging as key players delivering components and enabling technologies critical to the performance and scalability of superconducting quantum computers.

This wave of innovation is closely tied to strategic investments, particularly Sweden’s Wallenberg Centre for Quantum Technology programme (WACQT). WACQT’s long-term funding and focus on building a high-fidelity superconducting quantum computer have advanced academic research at institutions like Chalmers University of Technology and stimulated the growth of a supporting innovation ecosystem. The program has created a fertile environment for spin-offs, deep-tech ventures, and commercial collaborations that extend Sweden’s role beyond research into hardware components, measurement systems, and control infrastructure for superconducting qubit systems.

Denmark, while initially having taken a broader, qubit-agnostic approach through the Novo Nordisk Foundation Quantum Computing Programme (NQCP), also plays a vital role in the regional superconducting landscape. One key modality under active development in Denmark is superconducting qubits, with research led by the Niels Bohr Institute at the University of Copenhagen. Danish teams are focusing, for example, on overcoming coherence and control challenges and developing scalable architectures, including integrating superconducting qubits with hybrid quantum systems. With its strong expertise in quantum electronics, shared infrastructure, and global industrial partnerships, Denmark is well-positioned to support and complement the growing Nordic superconducting ecosystem, especially as different qubit platforms converge toward more advanced and interoperable architectures.

Collectively, these initiatives position the Nordic-Baltic region as a leader in superconducting quantum computing, fostering advancements from fundamental research to industrial applications.

Photonics and optics form a critical foundation for quantum technologies, playing essential roles across multiple domains—including the manipulation and readout of qubits, quantum communication, and advanced sensing applications. In the Nordic-Baltic region, this field benefits from decades of excellence in classical photonics, particularly in areas such as lasers, optical communications, and sensor technologies. This longstanding expertise provides a robust platform for advancing quantum photonics research and nurturing early-stage innovation. While scientific capabilities are strong, the commercial landscape remains in a formative phase. Most companies are still focused on conventional photonics markets, with quantum-related initiatives typically positioned as exploratory efforts or technology demonstrators rather than mature revenue streams.

In Denmark, leading institutions such as the Niels Bohr Institute and the Technical University of Denmark (DTU Fotonik and DTU Physics) have long-standing photonics and quantum optics research programs. These research hubs are developing technologies like integrated photonic chips and single-photon sources to enable quantum communication, computing, and sensing. While this research is internationally competitive and technologically promising, commercial offshoots remain limited in scale. Nevertheless, these institutions act as critical enablers, offering a knowledge base and talent pipeline that may support future spinouts. Among the emerging commercial actors, Sparrow Quantum, a spinout from the Niels Bohr Institute, plays a key role by developing on-chip single-photon sources for quantum networks and computing. Additionally, NKT Photonics, a long-established photonics company recently acquired by global leader Hamamatsu, brings significant industrial capacity in laser and photonic technologies relevant to quantum applications. These companies exemplify how Denmark’s photonics ecosystem is beginning to bridge fundamental research with applied quantum technologies.

Across the Baltic region, Lithuania and Latvia are expanding their quantum optics and photonics capabilities, building on strong foundations in classical optics, lasers, and space photonics. In Lithuania, institutions like Vilnius University and FTMC lead research in areas such as squeezed light, single-photon sources, and integrated photonics, supported by an established laser and nanophotonics industry. Notably, Lithuanian firm Astrolight — specializing in space-grade optical communication — was selected for the NATO DIANAQ accelerator, highlighting emerging commercial potential. In Latvia, collaborative efforts between the University of Latvia and Riga Technical University aim to establish a center of excellence in quantum photonics, focusing on materials, optical systems, and device development. While quantum-specific commercial activities remain early-stage, both countries actively build academic and industrial capacity to position themselves for future breakthroughs.

Finland and Sweden both possess strong foundations in classical photonics, which serve as a springboard for quantum photonics development, although most commercial applications remain at an early stage. In Sweden, the emerging quantum photonics and optics hub around KTH Royal Institute of Technology in Stockholm is driving localized ecosystem growth. A cluster of startups — including Svenska Laserfabriken, Single Photon Quantum Radiology AB, and Quantum Scopes — is exploring applications ranging from laser-based technologies to single-photon imaging. While these companies remain early-stage, they reflect growing commercial interest building upon Sweden’s strong academic foundation in photonics and quantum optics. Similarly, in Finland, the national PREIN flagship links academic research with industry, with the country’s commercial photonics cluster concentrated around Tampere, where Tampere University leads in photonics research. Companies like Modulight and Vexlum, specializing in laser systems, are exploring quantum-adjacent technologies while maintaining a primary focus on conventional markets.

In summary, the Nordic-Baltic region possesses deep capabilities in photonics and optics that are critical for quantum technology. While a few pioneering firms and research groups are laying the groundwork for commercial applications, the field is not yet mature enough to provide stable commercial returns. As a result, many players continue to develop versatile photonic technologies that serve both quantum and broader technology markets, positioning the region well for future growth as quantum demand increases.

While the Nordic-Baltic region is home to globally recognized expertise in foundational quantum technologies, it is also emerging as a leader in specific application domains where quantum technologies are expected to have a transformative impact. Among these, quantum life sciences currently stand out as the most mature stronghold, with active research and early commercial initiatives already underway.

Quantum life science is an emerging interdisciplinary field that applies quantum technologies to address complex challenges in biology, medicine, and healthcare. The Nordic-Baltic region, particularly Sweden and Denmark, has established itself as a stronghold in this domain through coordinated national initiatives, significant public and private investments, and a robust collaborative ecosystem spanning academia, healthcare, and industry.

Denmark is advancing quantum life science through initiatives like the Novo Nordisk Foundation Quantum Computing Programme (NQCP), which has committed $200 million to develop quantum computing hardware and algorithms to solve critical life sciences problems. Additionally, the Copenhagen Center for Biomedical Quantum Sensing, a collaboration between the University of Copenhagen, the Technical University of Denmark (DTU), and the University of Texas at Austin, is working to develop quantum sensing and imaging technologies for medical diagnostics and healthcare applications.

Sweden's leadership in quantum life science is anchored by the national Quantum Life Science Centre (QLSC), hosted at Karolinska Institutet's Department of Clinical Neuroscience. The QLSC aims to accelerate the development of quantum applications in precision health by fostering interdisciplinary collaboration among quantum physicists, AI researchers, clinicians, and biotech companies. Key partners include the Wallenberg Centre for Quantum Technology (WACQT), AstraZeneca, IBM, Elekta, and startups such as Deep Light Vision, Quantum Scopes, and SPQR. The centre focuses on developing quantum-enhanced tools for bioimaging, diagnostics, and drug discovery, with the goal of positioning Sweden as a global leader in quantum-enabled precision medicine.

The Nordic-Baltic region is nurturing a dynamic ecosystem of companies developing quantum algorithms for life sciences and chemistry. In Denmark, firms such as QunaSys, Kvantify, and Hafnium Labs are advancing quantum simulation methods to model complex molecular interactions and chemical processes relevant to drug discovery and biochemical research. Finland’s Algorithmiq is at the forefront of applying quantum computing in healthcare and life sciences, driving innovation in molecular simulation, drug discovery, and advanced medical treatments. A prime example of the transformative potential of Nordic companies is the computational drug discovery pipeline Algorithmiq is developing to integrate quantum computing into real-world pharmaceutical workflows.

These concerted efforts in Sweden, Denmark, and Finland highlight the Nordic-Baltic region’s emerging strength in quantum life sciences. The region is positioning itself at the frontier of applying quantum technologies to healthcare and biomedical research by combining world-class research infrastructure, active clinical partnerships, and pioneering industrial initiatives. While the field remains at an early stage globally, the Nordic focus on quantum sensing and simulation for diagnostics and drug discovery illustrates a unique commitment to translating quantum research into potentially transformative healthcare solutions.

In addition to life sciences, several sectors show strong potential to evolve into regional quantum strongholds, including defense and security, energy, advanced manufacturing, and finance. These opportunities reflect the region’s unique combination of scientific excellence, industrial capability, and societal priorities. This section explores where the Nordic-Baltic ecosystem is best positioned to shape and lead the next wave of quantum-enabled applications.

The Nordic-Baltic region recognizes quantum technologies as strategically critical for national security, defense capabilities, and technological sovereignty. The region has positioned itself as a committed participant in NATO and EU defense technology programs, with quantum technologies at the center of emerging dual-use strategies. Establishing NATO Centre for Quantum Technologies in Denmark under NATO’s Defence Innovation Accelerator for the North Atlantic (DIANA) reflects strong institutional support. Additionally, accelerators and test sites exist across Finland, Norway, Estonia, Latvia, and Lithuania, further demonstrating the region’s collective commitment to fostering dual-use innovations in defense and security contexts.

Quantum sensing stands out as the region’s most promising area for defense applications. Research activities focus on developing highly sensitive quantum sensors for navigation, detection, imaging, and positioning, which could offer significant tactical advantages. While these applications remain largely in the research phase, the Nordic-Baltic region’s expertise in precision measurement and materials research positions it well for leadership as defense applications mature. Major defense industry players like Saab (Sweden) and Kongsberg (Norway) are actively exploring the potential of quantum technologies for defense and aerospace use, particularly in sensing and secure communication.

Quantum communication and cybersecurity are also areas of growing focus, although capabilities remain at an early stage. Most Nordic and Baltic countries participate actively in the EU’s EuroQCI initiative, which aims to establish quantum-secure communication infrastructure across Europe. National-level pilots and research activities are underway in cooperation with telecom operators and critical infrastructure providers. The urgent need to prepare communication networks against future quantum threats is widely acknowledged across the region.

Overall, the Nordic-Baltic region’s defense-related quantum efforts are characterized by early participation in NATO and EU programs, strong academic and industrial research bases, and increasing public-private collaboration. The dual-use nature of enabling technologies, such as photonics and lasers, offers additional potential to bridge civilian and defense quantum applications as the ecosystem evolves.

The Nordic-Baltic region has strong industrial roots, particularly in heavy manufacturing sectors in Sweden and Finland. Leading companies with significant R&D capacity offer fertile ground for the emergence of quantum-enhanced industrial applications. Around these, a broader quantum ecosystem could develop, extending beyond heavy industry to include engineering service providers, logistics optimization firms, and industrial software developers across the region.

Early efforts in the region have demonstrated how quantum computing can support materials science, process modeling, and resource optimization. In Sweden, the WACQT programme brings together companies such as Volvo Group, Sandvik, Scania, Saab, and ABB to explore quantum applications in manufacturing, logistics, and systems control. Finnish company Quanscient is also advancing quantum-powered simulations for engineering, with early work focusing on fluid dynamics and multi-physics modeling. Furthermore, Finland's IQM and Volkswagen developed a hybrid quantum-classical approach to simulate battery reactions with high accuracy and minimal qubit requirements (see use case).

In the future, quantum computing may become a key enabler for industrial AI. The growing demand for predictive systems, automated quality control, and generative design pressures classical machine learning. Quantum machine learning could unlock new possibilities, offering faster convergence, higher accuracy, or better generalization with limited training data. This would be especially valuable in industrial settings where data can be sparse or noisy. At the same time, quantum optimization may help industries make better decisions under uncertainty: from production planning to supply chain logistics and dynamic scheduling. These capabilities could support more agile, efficient, and resilient operations, benefiting large manufacturers and specialized logistics service providers.

Looking ahead, quantum technologies may also accelerate the industry's green transition. They offer new tools for materials discovery, enabling the design of lighter, stronger, and recyclable compounds. In a circular economy context, this could mean optimizing reuse strategies, extending product life cycles, and reducing raw material dependence. Quantum computing’s potential to simulate molecular and atomic behavior more accurately than classical methods may open new paths to cleaner, more sustainable industrial processes.

The financial services sector in the Nordic-Baltic region has begun to explore quantum computing. Still, engagement remains limited compared to more active developments in the USA and other parts of Europe. In particular, financial institutions in Spain and Italy have launched early experiments with quantum algorithms, addressing complex challenges such as risk modeling, pricing strategies, and ESG-related finance.

Several promising cases demonstrate emerging interest within the Nordic-Baltic region. Denmark’s Jyske Bank has deployed quantum-inspired algorithms in live trading operations, while Finland’s OP Financial Group has piloted credit risk modeling tools in collaboration with domestic quantum researchers. DATEV’s cooperation with Finland’s IQM highlights the region’s contribution to quantum-enhanced financial software. In addition, the Bank of Finland and other financial actors took part in the VTT-led FutureQ foresight project, which examined how quantum computing could reshape financial infrastructure, competition, and regulation.

Still, broader engagement from the sector is needed. Some regional stakeholders express concern that quantum research prioritizes other application areas, such as health and materials science, while overlooking finance. Stronger collaboration between financial institutions and the research community is essential to build strategic capabilities in quantum finance. This includes addressing near-term challenges such as data availability, algorithmic maturity, and practical use-case validation.

Looking forward, quantum computing could profoundly impact the financial sector. Global tech giants may use quantum advantage to offer more advanced, data-driven financial services, potentially displacing traditional players or capturing the customer interface. Conversely, quantum-enhanced modeling could support more personalized financial products, smarter risk segmentation, and new tools for evaluating climate and systemic financial risks. These capabilities could also help governments and regulators design more robust, transparent, and equitable financial systems.