Lyon Competes with Paris as European Investment Location
The results of the 2011 Ernst & Young European Attractiveness Survey were announced at the World Investment Conference in France this May. According to the survey, Lyon had increased in its attractiveness to investors and is now established as a serious competitor to Paris. The conclusions of the survey were based on 841 international business decision-makers’ views on the dynamics of Lyon’s economy, its economic strategy and its position as a major European city.
The Second French Metropolis
Lyon has consistently outstripped other French cities in previous years, but this 2011’s Ernst & Young report shows that Lyon has further increased in strength in its appeal as a business location. Indeed, according to Mark Lhermitte, Partner at Ernst and Young, “Lyon is ahead of the game as an ambitious city of tomorrow and is capable of competing with Paris, as judged by 51 % of foreign investors questioned. This represents a progress of 10 points in comparison with 2010, when Lyon still came in first but with a lower 44%”.
Lyon has also increased its lead ahead of Marseilles / Aix-en-Provence, Toulouse and Lille, who gained 15, 14 and 13% of votes respectively.
The reality of these figures is illustrated by the122 international business operations established in Lyon and the Rhône-Alpes region in 2010, which made it one of the top 3 European locations for attracting investment, along with London and Paris.
City Power – Sectors & Location
The 2011 Ernst & Young survey confirmed that the attractiveness of France as a whole depends on that of its major cities. In attracting 60% of new international investments in Rhone-Alpes in 2010 (with 45 out of 75 projects) Lyon and Greater Lyon are the prefect example of this.
To Jacques de Chilly, Executive Director of ADERLY (Lyon’s economic development agency), "this trend is polarised in the case of Lyon by an economic strategy that is both strong and consistent. The economic identity of the area is getting recognition from international investors, which creates trust."
Pushing the two strongest local sectors - life sciences and environmental technologies - has allowed Lyon to shine in an international market. Today, these two sectors continue to account for 50% of investment projects attracted to Lyon. This is expected to increase further with the heavy investments envisaged under the Campus Plan, which will strengthen the innovation cluster in Lyon, along with its cutting edge infrastructure.
Promoting Reality
There is still work to be done to ensure that investors’ perceptions of Lyon live up to its impressive offering, but the Ernst & Young survey shows that the marketing efforts of local institutions and economic partners have been extremely effective and a vital step in this process. According to Ernst & Young, "this year, cities are becoming more visible, and the panel seems to have a deeper knowledge of individual cities, including French ones, indicating that local marketing efforts have begun to bear fruit."
For further information, visit our section on doing business in Lyon.
