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New opportunities in innovation and technology transfer in France New opportunities in innovation and technology transfer in France

French policy for innovation Thomas Deschamps French Consulate in SF French policy for innovation Thomas Deschamps French Consulate in SF

Innovation ecosystems in France French policy for innovation Facilitate creation and development of innovative Innovation ecosystems in France French policy for innovation Facilitate creation and development of innovative startups and SMEs Strengthen relationships between public and private sector in R&D 3

For innovative ventures 1 “Enabling” Infrastructure Specific status for innovative startups/SMEs best R&D tax For innovative ventures 1 “Enabling” Infrastructure Specific status for innovative startups/SMEs best R&D tax credit ever 4

To create innovative ventures 1. 1 Public incubators (>3 k startups incubated so far) To create innovative ventures 1. 1 Public incubators (>3 k startups incubated so far) 30 incubators dedicated to transfer public research + Incubators at the regional level (some are aimed at biotech and multimedia startups) è RETIS : French innovation network National Competition for startups/SMEs http: //www. concourscreation. fr Detect and support projects to create innovative technology SMEs in all sectors (30% health 30% in ICT) In 2012, 62% of winners come from public research 5

Young innovative companies (JEI) 1. 2 Status created in 2004 (2047 labeled in 2010 Young innovative companies (JEI) 1. 2 Status created in 2004 (2047 labeled in 2010 alone) Gives exemptions on taxes and employer contribution European definition of an SME + < 8 years + independent + R&D expenses ≥ 15% of taxes 2011 Reform: decreasing advantages from the 5 th year and advantages leveled off Another status exist for startups which valorize the research lead by a higher education institution without the R&D expenditure constraint (JEU) 6

The best R&D Tax Credit (CIR) ever 1. 3 The Research Tax Credit (CIR) The best R&D Tax Credit (CIR) ever 1. 3 The Research Tax Credit (CIR) is the main tool to promote R&D in companies in France: Tax breaks: 40% of all R&D costs in the 1 st year, 35% in the 2 nd year and 30% afterwards, up to € 100 million Based on the annual volume of R&D expenditure x 2 for R&D carried out with academic entities x 4 for R&D done by final-year doctoral and postdoctoral research personnel in their first 2 years of employment. France’s video game tax credit, a unique measure in Europe, enables companies to save 20% of eligible video game creation expenditure + qualifying criteria. 7

Relations between public and private R&D 2 The Industrial Ph. D Technology clusters Carnot Relations between public and private R&D 2 The Industrial Ph. D Technology clusters Carnot Institute International tools: YEI 8

The industrial Ph. D (CIFRE) 2. 1 The Industrial Contracts for training through Research The industrial Ph. D (CIFRE) 2. 1 The Industrial Contracts for training through Research (CIFRE) facilitate mobility between public laboratories and companies and contribute to hiring Ph. Ds in companies. It brings together a Ph. D student, a company and an academic lab The company hires the student for 3 years and receives a grant of 14 000€/year In 2011 alone, 1300 CIFRE were signed 9

Competitiveness clusters 2. 2 Bring together R&D organizations, universities and companies to create synergies Competitiveness clusters 2. 2 Bring together R&D organizations, universities and companies to create synergies and high added value products & services. 71 clusters, 7 200 companies State funding since 2005: 3 B€ Since 2005: 889 R&D collaborative projects have been funded for a total amount of 1. 7 B€ from state funding (4. 4 B€ of R&D expenses and include 15 k researchers). 10

Competitiveness clusters 2. 3 Mission: Reinforce innovation, economic growth and employment By funding projects Competitiveness clusters 2. 3 Mission: Reinforce innovation, economic growth and employment By funding projects closer to the market By mobilizing actors and resources in the clusters ecosystems By supporting international development of SMEs, through bigger companies By fostering international cooperation and involving foreign entities: to find missing technological bricks and increase international visibility 11

Ministry of Higher Education and Research Directorate General for Research and Innovation 1 rue Ministry of Higher Education and Research Directorate General for Research and Innovation 1 rue Descartes 75231 Paris Cedex 05 France www. enseignementsup-recherche. gouv. fr virginie. [email protected] gouv. fr 12

1. 4 OSEO = Innovation agency + SME development bank Provides assistance and financial 1. 4 OSEO = Innovation agency + SME development bank Provides assistance and financial support to French SMEs in the most decisive phases of their life cycle : start up, innovation, development, business transfer / buy out. By sharing the risk, it facilitates the access of SMEs to financing by banking partners and equity capital investors. 3 activities: Innovation support loan guarantee program Funding investments and operating cycles alongside banks 661 M€ were dedicated to innovative SMEs in 2011 in grants or repayable advances : Support to innovation, 315 M€ Funding from partners (regions), 89 M€ Industrial Strategic Innovation projects (ISI), 107 M€ Fond Unique Interministériel (FUI), 112 M€ National Investment Plan (IA), 36 M€ 13