WATERLOO - In an effort to further strengthen Canada's position in the world of quantum computing, artificial intelligence and machine learning technology, the federal government is investing $41 million in four high-tech organizations in Waterloo Region.

Navdeep Bains, minister of innovation, science and economic development and the minister responsible for the Federal Economic Development Agency for Southern Ontario, made the announcement Thursday afternoon at Quantum Valley Investments, a 90,000-square-foot facility near the northern edge of the University of Waterloo campus and one of the investment recipients.

The room was packed with dozens of local tech leaders, including BlackBerry and Quantum Valley Investments co-founder Mike Lazaridis, University of Waterloo president Feridun Hamdullahpur and Iain Klugman, president and CEO of Communitech.

"The people in this room get it, and so does this community," said Bains. "Ideas are the fuel of the knowledge economy. This is what the global innovation race is all about."

The investments are expected to create up to 167 new jobs and maintain 75 jobs already in Waterloo. The announcement came just two days after Prime Minister Justin Trudeau was at Communitech to announce $18 million in funding for that organization as part of a $52 million investment to help launch tech startups onto the global stage.

The four companies that will receive a share of the $41 million, provided through the government's Strategic Innovation Fund, include:

• $20 million for the Quantum Valley Ideas Lab, a non-profit charitable organization created by Quantum Valley Investments to help develop a unique facility that will create new quantum-related products and businesses. The investment will allow the lab to establish a dedicated team of researchers, engineers and technology experts.

• $7.3 million for Cognitive Systems to help it develop the next generation of its software, a security product that uses the home's wireless network to better detect motion. The team will integrate artificial intelligence and machine learning into its software, while expanding its technology across a wider range of devices.

• $6.5 million for High Q Technologies to design new quantum technologies that will enable potentially life-saving treatments for illnesses such as cystic fibrosis. It will leverage recent quantum technology advancements to develop new medical devices that will allow medical professionals and researchers to produce new medicines more efficiently.

• $7.2 million for ISARA Corp. to develop better protection of information in personal and digital transactions. The company recognizes that future quantum computers will be able to hack existing encryption methods, so it hopes to develop quantum-safe encryption methods for large enterprises such as financial institutions or governments.

The government expects total investment for these projects will top $101 million.

Lazaridis said the ongoing success of these companies creates new jobs and economic value for the region and the country.

"Their success also adds to the collective experience and talent density for the Canadian tech industry ... and helps validate the viability of a quantum industry in Canada, building an international brand that will help us attract researchers, entrepreneurs and venture capital," he said.

The chief executive officer of Cognitive Systems said his first employees initially were part of a chip design team at BlackBerry until they were let go about five years ago. Taj Manku said they have had many job offers south of the border since, but didn't want to leave Canada.

"We've learned a lot," he said. The company, founded in 2014, has grown to 38 employees and it expects to reach 90 in the next few years. "We've learned how to focus ourselves, we've learned how to pivot, we've learned to stretch funding to meet our business needs, and we've learned to wear many hats."

In the past year, it has announced partnerships with Stanley Security and Qualcomm, and more announcements are planned for later this year.

"At last, we've gained sight of our first revenue," he said. "And the revenue we're going to gain is the Holy Grail of most tech companies - recurring and scalable revenue."

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jjackson@therecord.com

Twitter: @JamesDEJ