Washington's Quantum Paradox: World-Class Assets, $0 in Federal Funding
WTIA, Northwest Quantum Nexus, and WA Commerce compare the state's quantum strengths against Illinois, Maryland, and Colorado — and lay out what it will take to catch up in the federal funding race.
SEATTLE, Wash. — August 11, 2026 — Washington built the country's deepest bench of quantum assets almost by accident: Microsoft's Azure Quantum, Amazon's AWS Braket, a Pacific Northwest National Laboratory cryogenics program, IonQ's first-ever U.S. quantum manufacturing facility in Bothell, and top-three national standing in quantum-computing patents. Yet when the federal government handed out $2 billion in CHIPS Act quantum incentives this year, Washington's share was zero.
That paradox sits at the center of Quantum Technology in Washington State, a new landscape report released today by the Washington Technology Industry Association (WTIA), the Northwest Quantum Nexus (NQN), and the Washington State Department of Commerce, prepared by Moonbeam Exchange. The report is a 2026 update to a January 2023 baseline study and is built on public-source research alongside a 2026 interview program with more than a dozen leaders from Microsoft, AWS, IBM, Boeing, the University of Washington, Washington State University, and the Office of Governor Bob Ferguson.
"This report is exactly the kind of work WTIA exists to do — bringing industry, government, and research institutions to the same table to tell an honest story about where Washington stands and chart a clear path forward," said Randa Minkarah, WTIA's Chief Operating Executive. "Washington's quantum assets are extraordinary. Now it's time to make sure the rest of the country — and the federal government — knows it."
“This isn't a resource problem; it's a coordination problem, and that's the good news,” said Nick Ellingson, WTIA's VP of Innovation and Entrepreneurship. “Washington doesn't need to outspend Illinois or Maryland. It needs a shared table, a clear story, and a plan to turn the strongest quantum bench in the country into the federal dollars, startups, and jobs it deserves.”
The report finds that Washington captured only about 3% of national quantum SBIR dollars over the past decade and drew just $500,000 in direct state investment this year, compared with Illinois's $500 million-plus Quantum and Microelectronics Park, Maryland's roughly $200 million “Capital of Quantum” initiative, and Colorado's $127 million Elevate Quantum Tech Hub.
“Every other state we compare ourselves to has figured out that convening power and public dollars are what turn private-sector strength into federal wins,” said Arry Yu, Board Chair at Northwest Quantum Nexus. “Washington has the raw materials to lead the country in quantum. What we don't have yet is the coordination to prove it.”
Report recommendations
- Activate the Governor's office as a federal-capture catalyst.
- Build a public narrative around winnable specialty lanes.
- Invest in workforce development across all three talent tiers, starting with developer enablement.
- Position Seattle as a quantum bridge to Asian markets.
- Strengthen the state's thin startup and founder pipeline.
“Washington sits at a genuine inflection point,” said Nirav S. Desai, CEO of Moonbeam Exchange and the report's lead author. “Global private quantum investment jumped 6.3x last year alone. The question this report asks is simple: does Washington capture its share of that growth, or watch it go to states that showed up with a plan?”
The full report, including a complete ecosystem map, funding and patent analysis, workforce assessment, and AI/quantum convergence case studies, can be downloaded here.
About the Report’s Author
Nirav S. Desai is Co-Founder & CEO of Moonbeam Exchange, an AI-powered platform helping organizations source, prototype, and scale emerging technology through data-driven innovation. He also leads Innovation Acceleration for a large technology hardware company, where he drives strategy at the intersection of enterprise adoption and frontier computing. Desai co-authored the 2023 Washington State Quantum Landscape Report and chairs PNWER's Innovation Committee, advancing regional technology policy across the Pacific Northwest. He serves as an Affiliate Assistant Professor in the University of Washington's Department of Electrical & Computer Engineering and is Co-Founder & Chief Strategy Officer at Convergence: Tech Policy Institute.
About WTIA
The Washington Technology Industry Association (WTIA) is a 501(c)(6) not-for-profit member trade association which operates as part of a consortium that includes a regulated 501(c)(9) association health plan and Portalus, a for-profit corporation providing 401(k) and healthcare services to small and medium-sized companies. Together, they create pathways for companies to grow, innovate, and compete on a global scale.
WTIA is the trade association in Washington state that serves the local tech ecosystem through policy and advocacy to help maintain the state as a hub for innovation, workshops and accelerators to help entrepreneurs launch their businesses, and employee benefits programs that enable startups and small and medium businesses to grow.
About NQN
The Northwest Quantum Nexus (NQN) is a regional coalition shaping the future of quantum.
NQN unites universities, national labs, and industry to advance quantum information science and build a thriving Northwest quantum economy. The Northwest Quantum Nexus is committed to accelerating discovery and innovation in the rapidly evolving field of quantum technologies. Our mission is to advance the science and engineering of quantum information, attract and retain world-class talent, secure long-term investment, and build a sustainable quantum economy rooted in the Northwest. NQN serves as a collaborative engine for researchers, companies, universities, and government partners — creating a dynamic environment where ideas move from theory to impact.
About Moonbeam
Moonbeam Exchange is an AI-powered innovation brokerage that helps economic development agencies, governments, and corporations source, evaluate, and scale emerging technologies. Drawing on a research-backed database, Moonbeam has supported private-sector and public-sector partners across the U.S. and internationally in mapping innovation clusters, identifying capability gaps, and building technology strategy grounded in data. The firm has collaborated with the Washington Technology Industry Association (WTIA) on regional innovation initiatives, and its research has informed policy discussions with international governments and informed domestic legislative priorities around AI, quantum, and other frontier technologies.
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Media Contact
Terrance Stevenson
Director of Industry and Community Affairs, WTIA
tstevenson@washingtontechnology.org