Portugal’s Quantum Computing Push: €50M Investment and Research Centers

Portugal is positioning itself as a meaningful player in quantum computing research and development, allocating significant government resources and establishing specialized research facilities to compete in a technology sector projected to reach $8.6 billion globally by 2030.

The Portuguese government has committed approximately €50 million toward quantum computing initiatives over the next five years, with funding directed toward university research centers, private sector partnerships, and infrastructure development. This investment reflects a deliberate strategy to build technical capacity in a field where early movers in research and development are establishing competitive advantages.

The University of Lisbon and University of Porto’s advanced research capabilities have emerged as primary hubs for quantum research, each hosting dedicated laboratories and research groups focused on quantum algorithms, quantum simulation, and quantum hardware development. These institutions are recruiting specialized talent and collaborating with international partners including research centers in Germany, Switzerland, and the United States. The University of Lisbon’s Institute for Systems and Robotics has expanded its quantum computing division, bringing on researchers with PhDs from leading institutions and securing grants from both national and European funding bodies.

Portugal’s approach differs from larger European nations by emphasizing strategic partnerships with established tech companies rather than attempting to build quantum hardware manufacturing capacity domestically. This focus on software, algorithms, and applications allows Portuguese researchers and entrepreneurs to contribute meaningfully without the infrastructure costs associated with fabricating quantum processors.

Feedzai, the Lisbon-based fintech company valued at $3.2 billion, has begun exploring quantum computing applications for fraud detection and real-time transaction analysis. The company’s research team is investigating how quantum algorithms might accelerate pattern recognition in high-velocity financial data streams. Similarly, OutSystems, Portugal’s largest software unicorn, is examining quantum applications for optimization problems within enterprise software systems.

“Portugal’s strategic focus on quantum software and algorithms, rather than hardware manufacturing, positions the country to compete effectively in specialized niches without massive infrastructure investments” – European Commission Digital Innovation Report, 2024

Beyond established tech companies, a handful of quantum-focused startups have launched in Portugal’s major tech hubs. Quantum Minds, founded in 2022 by researchers from the University of Lisbon, develops quantum simulation software targeting pharmaceutical and materials science applications. The company raised €2.1 million in seed funding in 2023 from Portuguese venture firms and European deeptech investors. Another startup, Quantum Leap Computing, focuses on quantum machine learning algorithms and has secured partnerships with research institutions across Portugal and Spain.

The Portuguese government’s quantum strategy includes funding for talent development programs, with scholarships and fellowships directed toward graduate students pursuing quantum physics and quantum engineering specializations. The national science foundation has allocated €8 million specifically for PhD and postdoctoral positions in quantum research over the next three years. This emphasis on human capital reflects recognition that quantum computing advancement depends on attracting and retaining specialized researchers in a globally competitive market.

Portugal’s position within the European Union provides advantages in accessing EU research funding through Horizon Europe, the bloc’s €95.5 billion research and innovation program. Portuguese research teams have submitted 23 quantum-related project proposals to Horizon Europe’s latest funding round, with preliminary approval rates suggesting 4-5 projects will receive funding totaling approximately €12 million. This external funding supplements national investments and connects Portuguese researchers with collaborative networks across Europe.

The country’s established tech ecosystem offers a secondary advantage for quantum computing development. Lisbon and Porto have developed reputations as technology hubs with growing populations of software engineers, data scientists, and technical professionals. The Web Summit, held annually in Lisbon and attracting 70,000 attendees from 170 countries, has increasingly featured quantum computing in its programming, providing visibility to Portuguese quantum initiatives and creating networking opportunities with international investors and researchers.

Challenges remain significant. Portugal’s quantum computing sector still employs fewer than 200 full-time researchers and engineers, compared to thousands in Germany, Switzerland, and the United States. The country lacks specialized deeptech venture capital firms, forcing quantum startups to seek funding from generalist VC firms or international sources. Three quantum startups launched in Portugal between 2021 and 2023 have relocated their primary operations to Switzerland or Germany while maintaining research connections in Portugal, citing access to specialized investor networks and larger talent pools.

The government has responded by establishing the Quantum Portugal Network, a formal consortium of universities, research centers, and companies coordinating quantum research efforts and facilitating information sharing. The network, launched in 2023, includes representatives from 12 institutions and has published a strategic roadmap identifying priority research areas: quantum simulation for chemistry and materials science, quantum machine learning, and quantum communication networks.

Portugal Ventures, the country’s main venture capital firm managing over €300 million in assets, has signaled increased interest in quantum computing investments but notes limited deal flow. The firm has made one quantum-related investment to date—a €1.2 million check in Quantum Minds—and is actively prospecting for additional opportunities in the space.

The practical timeline for commercially viable quantum computing applications remains uncertain. Most analysts expect meaningful quantum advantage in specific applications within 5-10 years, with broader industrial adoption following over a 15-20 year horizon. Portugal’s strategy assumes this timeline, positioning the country to contribute substantially to research and algorithm development while preparing a workforce for quantum-enabled industries.

For entrepreneurs and technical professionals in Portugal, the quantum computing sector presents emerging opportunities in research positions, technical roles at quantum-focused startups, and potential future careers in quantum applications development. The combination of government investment, university research capacity, and growing private sector engagement suggests the sector will expand meaningfully over the next five years, though scale will remain modest compared to quantum initiatives in larger European economies.

The success of Portuguese unicorns like OutSystems and Feedzai demonstrates the country’s capacity to develop globally competitive technology companies, providing a foundation for quantum computing ventures to build upon existing expertise and networks.

Portugal’s quantum computing ambitions reflect broader intentions to establish technical credibility beyond traditional service sectors. This initiative builds on Portugal’s emerging position as a European tech hub, leveraging existing strengths in software development and research collaboration. Success depends on sustained government commitment, ability to attract and retain specialized researchers, and generating commercial applications that justify continued investment and attract international partners and investors.