The Economics of an Open-Source Quantum Computer

TL;DR

This paper explores how open-source quantum computing projects could positively influence the development of fault-tolerant quantum computers by reducing market frictions and supporting ecosystem growth, potentially benefiting both open-source and proprietary firms.

Contribution

It analyzes the potential market impacts of open-source quantum computing, highlighting mechanisms like benchmarking and hardware-agnostic tech that could accelerate progress.

Findings

Open-source quantum projects may reduce market frictions.

They can facilitate benchmarking and hardware-agnostic development.

Potential for improved market liquidity and ecosystem collaboration.

Abstract

Open-source projects that aim to make their offerings public have competed against for-profit, proprietary companies in a number of domains. These open-source projects often arise in response to the offerings of proprietary companies in markets where products have already been commercialized. We assess what impact an open-source project might have when it enters the market for quantum computing - a market where the core technology is still being developed. We argue that an open-source quantum computer might alleviate market frictions that have impeded the development of a fault-tolerant quantum computer by providing the market with a possible mechanism for: 1.) benchmarking, 2.) the development of hardware agnostic technology, and 3.) improved liquidity on the supply side of the market for labor. Should these outcomes be realized, they may not only benefit the open-source project, but also the for-profit, proprietary companies operating in the ecosystem. In this respect, an open-source quantum project may play a more complementary role to the proprietary firms in the ecosystem, rather than a more competitive role. Our collective insights may have implications for other settings where an open-source project enters into a market where the core technology has yet to be commercialized.