Insider Brief
- NQCG ceased operations after 25 years, citing insurmountable challenges from Norwegian policies and lack of quantum infrastructure.
- Key obstacles included absence of a national quantum strategy, difficulty recruiting international talent, and burdensome tax policies.
- The closure highlights the need for supportive policies to foster innovation in emerging technologies like quantum computing.
Nordic Quantum Computing Group AS (NQCG), a pioneering European quantum computing startup and Norway’s only company dedicated to building scalable quantum computers, has closed its doors, according to a post on the company’s site. The company, founded in 2000, ceased operations on December 6, 2024, citing insurmountable challenges tied to government policies and a lack of supportive infrastructure for emerging technologies.
The closure ends a 25-year journey that saw NQCG aim to make Norway a global hub for quantum innovation while generating jobs and advancing the frontier of technology. At the time of its dissolution, the company had no outstanding claims or liabilities.
The closure of NQCG may serves as a reminder that quantum innovation thrives where policies encourage entrepreneurship, investment and global collaboration.
NQCG’s post offered a long list of challenges and obstacles of building a quantum company in Norway.
Lack of National Strategy
One of the main factors behind NQCG’s demise was the absence of a national quantum technology strategy in Norway, a stark contrast to neighboring Nordic countries, the team writes. Without a roadmap or investment plan, the company struggled to compete in the rapidly advancing quantum computing sector.
Norway’s scientific infrastructure also lagged behind, making it difficult to support the development of quantum computers. Stakeholders had long criticized the government’s NOK 70 million annual budget for quantum technology as insufficient to foster growth or attract international partnerships.
Challenges in Talent Recruitment
Norway’s policy environment made it difficult to recruit skilled international talent, a critical component for any high-tech startup. The absence of a “Startup Visa” meant delays in onboarding global experts, forcing many startups to relocate to countries with more favorable conditions.
A retroactive “exit tax,” which applies a 37.84% levy on employees returning to their home countries, further complicated recruitment efforts. Dubbed a “skills tax” by critics, this policy increased costs for companies dependent on imported expertise.
Tax Policies: A Double-Edged Sword
For entrepreneurs and investors, Norway’s wealth tax on unrealized capital gains proved to be a major hurdle. This tax burdens founders by taxing assets that appreciate in value, even if they generate no cash flow, discouraging long-term investments. Since 2021, ownership taxes have risen by 107%, further straining startups and pushing many investors to move operations abroad.
Adding to the difficulties was the retroactive exit tax, introduced in March 2024 and set to take effect in January 2025. Designed to tax gains when companies relocate abroad, the policy created a “Catch-22” for startups like NQCG. Scaling operations often requires global expansion, but doing so triggers punitive taxation, making growth nearly impossible.
Implications for Emerging Industries
NQCG’s closure is a cautionary tale for governments hoping to foster innovation in emerging sectors. The company’s ability to innovate was stifled not by technical limitations but by financial and policy barriers. Without a supportive ecosystem, even pioneering companies struggle to survive in the competitive global market.
Broadly, the situation underscores the critical role of government in enabling high-tech industries to thrive, particularly in fields like quantum computing, which demand long-term investment and a skilled workforce.
