Significant R&D funding gives France the competitive edge

Feature Articles / France Leads in R&D Funding

Companies now have the opportunity to take advantage of the 13^th round of the French government’s financial support program for research and development (R&D). The next bidding process for funding as part of the innovation cluster concept will close on September 30, presenting a second opportunity this year to join what has proved to be a very successful initiative.

France is already the second-largest spender on R&D in the European Union and the innovation clusters sit at the heart of the country’s efforts to attract international investment. President Sarkozy and Industry Minister Eric Besson both reiterated their importance in speeches earlier this year. The President acknowledges that he is perceived as having an obsession with building France’s industrial base. But he makes no apologies for his stance, arguing that it is essential to France’s economic wellbeing. “Industry is a source of wealth, growth and jobs,” he stated, going on to remind his audience of the role that the innovation clusters play.

Elsewhere, Mr. Besson reiterated the importance of the clusters at their most recent ‘national day’ in January. He reeled off the figures: 71 clusters; more than 7,000 projects and businesses employing around 15,000 researchers; 889 R&D projects financed (this has since risen to 972); and spending of €4.6 billion of which €3.5 billion is from the private sector. Additional funds from France’s national research agency (ANR) and the innovation agency OSEO bring the total committed to nearly €6 billion.

“The innovation cluster policy can therefore be seen as a real success story,” Mr. Besson said. “But we can, and we must, go even further and do even better.” With the innovation cluster policy performing so strongly, France is very much open for business.

Those who make it through the selection process will be joining a long list that includes cutting-edge activity in a wide range of sectors. In medicine, the Fluriad project (Medicen Paris Region cluster) is developing oral vaccines – the extra funding helps them to “employ highly-skilled personnel from around the world” - and Ourses, in aerospace, is using satellite technology to provide assistance to patients in rural areas.

The PACA Marine cluster is developing underwater electrical connections for renewable marine energy applications. Project Manager Michel Ollier says that the 40% state funding, together with investment from EDF Energy, “has made testing possible at great depths”.

The funding has also had a “huge impact” on the LUTB (Lyon Urban Truck & Bus) cluster’s development of heavy hybrid vehicles for low-carbon urban logistics, whose effects will “radiate across the world”.

The chances of success are high. Of the 185 proposals submitted in late 2010 for example, no fewer than 83 were chosen, representing a success rate of just under 45%. This reflects not only the quality of submissions and France’s inherent attractiveness as an investment location, but also the French government’s determination to make innovation a key component of its broader industrial policy.