As part of the Industrial Strategy the Government will invest in the “Commercialising quantum technologies” Industrial Strategy Challenge Fund (ISCF) to enable the UK to lead the global development and application of quantum technologies. The aim of the competition is to advance the commercialisation of quantum technologies in the UK through the investment of up to £27m in innovation projects. The webcast recording is now available. Click here to watch it: https://www.youtube.com/watch?v=8beNopMS7sw Find out more about the Quantum Technologies Special Interest Group at https://ktn-uk.co.uk/interests/quantum-technologies Join the Quantum Technologies Special Interest Group at https://www.linkedin.com/groups/8594516/

1. Commercialising quantum technology:
● feasibility and industrial research projects round 1
● large collaborative projects round 1
Applicant Briefing
2 September 2019

2. The UK National Quantum Technologies
Programme

3. Phase 1
Hubs and Capital
Training and Skills
NPL QMI
Dstl Demo
UKRI
EPSRC Science
~£400M
Phase 2 will bring UK quantum investment to £1bn

4. Pioneer funding for Quantum
A new set of products from
medical devices to sensors and
safer communication systems
may be possible using the
emerging physical science known
as quantum technology. The
potential is huge but still largely in
the lab environment. Pioneer
funding will bring new disruptive
companies together with existing
businesses to understand how
this emerging technology can be
turned into products that will
underpin industry in the future.
ISCF Wave 2 Quantum Pioneer - £20M funding

5. Progress to date - Projects
KAIROS
Pioneer Gravity
3QN
AquaSec
Miniature atomic clock
Gravity detection for survey
Quantum Key Distribution by Satellite
Agile Quantum safe Communications.
Quantum Key Distribution over Fibre
There are 4 ISCF Quantum projects which all kicked off in November 2018.
Led by
Teledyne e2v (UK) Limited
Led by
RSK Environment Limited
Led by
ArQit Limited
Led by
Toshiba Research Europe
Limited

6. AQuaSeC – A Consortium
Quantum Cryptography Post-Quantum Cryptography
National Facilities
System Integrators
End Users
Component Developers
TREL
Characterisation of components
High performance prototype
Security evaluation
User trials
KETS
QRNG
Low SWaP prototype
Security evaluation
User trials
IQE
Commercial growth of wafers
Uni. of Glasgow
Processing of Ge on Si APDs
Uni. of Sheffield
Growth of InGaAs/InP APDs and placed dot wafers
Uni. of Cambridge (Physics)
Processing of InGaAs/InP APDs and emitters
Heriot-Watt Uni.
Characterisation of APDs
Queen’s University Belfast
Hardware modules for QRA
Royal Holloway Uni. London
Security design
Software implementations of QRA
National Physical Laboratory
Security evaluation & certification
British Telecom
Demonstrations with end users
Senetas
Link encryption system and QKD integration
Uni. of Cambridge (Eng.)
Field trials in Cambridge and NDFIS
Dashboard
Integration with IoT system
TDS
Integration with tethered drone system
Radianz
Developing use-cases in financial sector
British Petroleum
Corporate network / Oil & Gas sectors
Ministry of Defence
Use cases in defence sector
CRUK - Cambridge Institute
Use cases in healthcare sector

7. Contingent upon
£205M of industry
investment
Current
Investment
Plan is
£153M over 6
years
Initial Budget
£70M over 3
years
ISCF Wave 3 - Commercialising Quantum
Products and Services: How Much?
Comms - Sensing - Imaging - Computing

8. What Next?
Hubs
NQCC
ISCF
Other Industry
*
* Hubs, Training and Skills Including CDTs and studentships

9. UK Industrial Strategy and ISCF

11. Global investment in R&D comparisons
UK 2.4% Target
75% of Business R&D
carried out by just
400 businesses
(source: Industrial Strategy)

13. Industrial Strategy Challenge Fund
• Delivers the science that business needs to transform
existing industries and create new ones
• Accelerates commercial exploitation of the most exciting
technologies the UK has to offer the world
• Ensures that scientific investment truly delivers economic
impact, jobs and growth right across the country
• Industry-led and powered by multi-disciplinary research
and business-academic collaboration
13

14. Industrial Strategy Challenge Fund objectives
• Increased UK business investment in R&D and improved R&D
capability and capacity
• Increased multi- and interdisciplinary research
• Increased business-academic engagement on innovation
activities
• Increased collaboration between younger, smaller companies
and larger more established companies, connecting up value
chains (or networks)
• Increased overseas investment in R&D in the UK
14

15. 15
Industrial Strategy
White Paper
Formation of UK Research
and Innovation
Budget 2018
Wave 1 challenge competitions Scaling wave 1 challenges
Announce wave 2 Wave 2 challenge competitions
Recruit Challenge Directors: (waves 1 and 2)
Scaling wave 1 challenges
Scaling wave 2 challenges
Recruit Challenge Directors (waves 2 and 3)
Wave 3 industry negotiations
Wave 3 delivery
Wave 2 challenge competitions
Wave 3 industry negotiations/outcomes
Wave 3 EOI process
Wave 3 challenge
development/shortlisting

16. Underpinning UKRI investments (Wave 1a) up to £283m
Leading-Edge
Healthcare
Challenge
(including
Medicines Mfg)
up to £188m
National
Satellite Test
Facility
up to £99m
Next Gen.
Affordable
Lightweight
Materials Mfg
(ATI projects) up
to £26m
Autonomous
Vehicles
(CCAV
projects)
up to £38m
Robotics and
AI in extreme
environments
Challenge
up to £93m
Faraday
Battery
Challenge
up to £246m
Wave 1 Challenges (c. £1bn)
16

17. Wave 2 Challenges (up to £729.5m)
17
Early diagnosis & precision
med (up to £196m)
Healthy ageing
(up to £98m)
Next generation
services (up to £20m)
Audience of the future
(up to £33m)
Quantum technology
(up to £20m)
Transforming construction
(up to £170m)
Transforming food
production (up to £90m)
Energy revolution
(up to £102.5m)

18. Wave 3 Challenge Shortlist
Subject to business case and successful negotiation
https://innovateuk.blog.gov.uk/2019/02/05/industrial-strategy-challenge-fund-wave-3-shortlist/
Industrial Strategy Grand Challenge ISCF wave 3 challenge
AI and data Commercialising quantum technologies (up to £70m*)
Digital security by design (up to £70m)
Ageing society Accelerating detection of disease (up to £79m)
Clean growth Industrial decarbonisation (up to £170m)
Manufacturing made smarter (up to £121m*)
Smart sustainable plastic packaging (up to £60m)
Transforming foundation industries (up to £66m)
Future of mobility Driving the electric revolution (up to £78m*)
Future flight (up to £125m)
* 3 year profiles were announced at Budget 2018 for these challenges as per current spending review period.

19. Quantum Commercialisation ISCF
Programme

20. Theresa May praises UK sector as she opens London Tech Week
By Press Association
PUBLISHED: 12:59, 10 June 2019 | UPDATED: 13:00, 10 June 2019
Prime Minister Theresa May has urged the tech industry to work with the Government to
ensure Britain remains “one of the best places in the world to start and grow a tech
business”.
Mrs May used a speech at the opening of London Tech Week to announce Government
investment of more than £150 million in new technology such as quantum computing.

21. The Vision
Grow the UK’s leadership in Quantum Technologies,
delivering transformational products to a global market
and removing a range of technological barriers to UK
growth in productivity and competitiveness.

22. Exploiting Previous Investment
EPSRC Funded
Science
Commercialisation Industrialisation
Continued
Government Support
World Class Research
Four Hubs
Training and Skills
QMI
NQCC
NPL Programme
Dstl Programmes
Innovate UK EE and Quantum
Programmes
ISCF Wave 2
ISCF Wave 3
Other Missions
People and IP
Facilities, People and IP,
Industry-Academic Relationships,
Embryonic Supply Chain
Innovation centres
Mature consortia, demonstrators, early
products and services, industry
investment, finance, T&E. scale-up.
Future Initiatives
Quantum Computing Institute
Built on NQTP Phase 1 and ISCF
Wave 2 Pioneer
“The £1B NQTP.”

23. HOW MUCH INVESTMENT?
ISCF Wave 3
£153m
Industry matched funding
£205m
WHY ISCF WAVE 3?
System Failures (Market,
Coordination, Network.)
Investment Risk
Maintain Momentum
International
Competition
OBJECTIVES
• Products and Service
• s
2019/20 2021/22 2022/23 2023/24 2024/252020/21
CR&D
Feasibility
Studies
Technology
Projects
IA
WHAT WILL WE DELIVER?
WHAT ARE THE OUTCOMES
Increased skills & knowledge
Growth in export opportunities
New product lines & services
Increased R&D investment
SME involvement
Improved productivity & profitability
Summary
Sales of Products and
Services
R&D Investment
Focussed Research
Academic-Business
coordination

24. Increased sales of QT products and services
Increased UK business investment in R&D
Increased multi- & interdisciplinary research
Increased business-academic engagement
Objectives

25. Increased sales of QT products and services
Increased UK business investment in R&D
Increased multi- & interdisciplinary research
Increased business-academic engagement
Objectives

26. Industry Investment and Matched Funding
An important element in ISCF W3 has been an increased emphasis on
industry co-investment
• All W3 programmes have ambitious targets for industry matched
funding that exceeds that built into competitions
• Projects will need to identify non-competition matched funding
and co-investment and how this will be measured
• This will be an important part of the competition project
assessment and monitoring process.

27. Wave 3 Delivery Strands

28. Quantum Products and Services (CR&D)
• £83m over 3 rounds
• Industry led
• Aimed at delivering new quantum products and services with a
focus on the end user and a full supply chain.
• Similar to the ISCF W2 Pioneer programme in 2018 but quantum
computing IS in scope
• Collaborative projects £2m-£10m up to 36 months
• Expect to fund ~15 projects

29. Feasibility Studies (FS)
• £12m over 2 rounds
• Industry led
• Need an SME to lead or as a partner
• Smaller shorter projects, aimed at components and systems
integration
• Projects <£500k, up to 18 months
• Expect to fund ~40 projects

30. Technology Projects (Tech) – In Progress
• £46m over 2 rounds
• Industry led projects
• Aimed at allowing industry to work together on common
technology challenges facing quantum commercialisation
• May allow co-location at specialist facilities
• Primarily activities rather than facilities
• Expect to fund 5-8 large projects (grant size <£10m)
• RTO participation limited to 30%
• New buildings not eligible

31. Investment Accelerator (IA)
• £12m in one round
• Aimed at increasing VC investment into early stage quantum companies
• Identify 1-3 VC’s who will match a £12m investment to form a £12m
fund(s) – VC’s contract to procure at least another £36m in follow-on
funding
• Innovate UK runs open call for projects to be funded by the £12m fund
• VC’s agree investment terms with company recipients

32. Delivery Streams – Scope and Format
Delivery Strand Products & Services CR&D)
Quantum Technology
Development (Tech)
Components & Supply Chain
(FS)
Investment Accelerator
Technical Scope Whole of challenge initially – Later tuned to maximise impact and industry co-investment
Project Focus
End user led products and
services
Industry technology
challenges and co-location
Components, supply chain
elements
VC investment into early stage
high growth businesses
Lead Applicant Business
VC (investor stage), Business
(investee stage)
No. of participants 2 or more 1 or more n/a
RTO/academic participation Max 30% Max 50% n/a
Project Size
£2m-10m £4m- (max £10m grant) >£500k (<£50k for market
assessments)
tbd
Project Duration 18-36months <36 months <18 months n/a
Interview Assessment Stage Yes No Yes for investors
Lead Participation Limits
Companies can only lead on one project per stream per round Companies can lead on up to
3 projects
1-3 investors to be selected

33. Total Funding
2019/20 2021/22 2022/23 2023/24 2024/252020/21 2025/26
CR&D
CR&D PHASE 3
(WS1.3)
Initiation Competition Monitoring
Competition
Launch
Submissions
Deadline
Projects
Go Live
Annual
Review
Annual
Review
Annual
Review
Close-Out
Q1
Review
Q2
Review
Q3
Review
Q1
Review
Q2
Review
Q3
Review
Q1
Review
Q2
Review
Q3
Review
Feasibility
Studies
FS PHASE 1
(WS2.1)
Initiation Competition Monitoring
Competition
Launch
Submissions
Deadline
Projects
Go Live
Annual
Review
Annual
Review
Close-Out
Q1
Review
Q2
Review
Q3
Review
Q1
Review
Q2
Review
Q3
Review
FS PHASE 2
(WS2.1)
Initiation Competition Monitoring
Competition
Launch
Submissions
Deadline
Projects
Go Live
Annual
Review
Annual
Review
Close-Out
Q1
Review
Q2
Review
Q3
Review
Q1
Review
Q2
Review
Q3
Review
Tech PHASE 1
(WS3.1)
Initiation Competition Monitoring
Competition
Launch
Submissions
Deadline
Projects
Go Live
Annual
Review
Annual
Review
Annual
Review
Close-Out
Q1
Review
Q2
Review
Q3
Review
Q1
Review
Q2
Review
Q3
Review
Q1
Review
Q2
Review
Q3
Review
Technology
Projects
Tech PHASE 2
(WS3.2)
Initiation Competition Monitoring
Competition
Launch
Submissions
Deadline
Projects
Go Live
Annual
Review
Annual
Review
Close-Out
Q1
Review
Q2
Review
Q3
Review
Q1
Review
Q2
Review
Q3
Review
IA
Investment Accelerator
(WS4)
Initiation Competition
Competition
Launch
Competition
Deadline
Contracts
Awarded
Monitoring
£12.5m £24.5m £39m £39m £25m £13m
Funding
£6m £11m £11m £8m
CR&D PHASE 1
(WS1.1)
Initiation Competition Monitoring
Competition
Launch
Submissions
Deadline
Projects
Go Live
Annual
Review
Annual
Review
Annual
Review
Close-Out
Q1
Review
Q2
Review
Q3
Review
Q1
Review
Q2
Review
Q3
Review
Q1
Review
Q2
Review
Q3
Review
£11m £10m £6m
Total Cost
£27m
CR&D PHASE 2
(WS1.2)
Initiation Competition Monitoring
Competition
Launch
Submissions
Deadline
Projects
Go Live
Annual
Review
Annual
Review
Annual
Review
Close-Out
Q1
Review
Q2
Review
Q3
Review
Q1
Review
Q2
Review
Q3
Review
Q1
Review
Q2
Review
Q3
Review
£3m £8m £8m £1m
Total Cost
£20m
Total Cost
£36m
Total Cost
£6m
Total Cost
£6m
Total Cost
£30m
Total Cost
£16m
Total Cost
£12m
£0.5m £3.5m £2m
£1m £3m £2m
£7m £12m £8m £3m
£3m £8m £5m
£6m
Milestone dates agreed
Milestone dates TBC
Batch 1
Batch 2
Batch 3

34. 34
Finances By Deliverable
UKRI Investment by Strand 19/20 20/21 21/22 22/23 23/24 24/25 Total
Quantum Products and Services
(CR&D) 14.0 24.0 25.0 12.0 8.0 83.0
Quantum Components and Supply
Chain (FS) 0.5 3.5 3.0 3.0 2.0 0.0 12.0
Quantum Technology
Development 7.0 12.0 11.0 11.0 5.0 46.0
Investment Accelerator 12 12
Total (£m) 12.5 24.5 39 39 25 13 153

35. CRD
54%
FS
8%
Tech
30%
IA
8%
How the £153m is divided between delivery strands
CRD
FS
Tech
IA

36. Year 1 Delivery Plans
• CR&D Competition Round 1 (£27m) - Launch Date 5th August 2019
• FS Competition Round 1 (£6m) - Launch Date 5th August 2019
• Investment Accelerator (£12m) - Investor Stage Launch 17th August
2019
• Technology Projects (£30m) - Launch Nov/Dec 2019 tbd