R&D and innovation in Paris Region march 2014

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CONTENTS

• SayOUI to innovation, SayOUI to France

• Paris Region, where business meets ideas

• Paris Region, Europe’s Hub of Innovation

• Paris Region. We help you to succeed.

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Overview

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The most attractive R&D taxincentive program in Europe

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• Business R&D is a key priority in France. Government funding in

this area has increased significantly. Indirect funding through the

research tax credit (CIR) was reinforced by a major revision of the

scheme in 2008 (at a budgetary cost of nearly USD 6 billion in

2010), while direct funding through the innovation agency (OSEO)

and the ANR was maintained (source : OECD).

• The French Research Tax Credit offers the most favorable fiscal

environment in the world for R&D

• Average cost of a researcher in the United-States is 23% higher

than in France without the Research Tax Credit, and 81% higher

than in France with the Research Tax Credit & subsidies

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Key Figures

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• R&D Expenditures in France : 45 billion euros (1)

• Evolution of the GERD 2011 / 2010 : +2.3% (1)

• Number of persons employed for R&D : 239,000 (FTE) – (1)

• Number of French and foreign Companies with R&D activities in France: 13,300 (2)

• Number of foreign companies with R&D activities in France : 1,400 (2)

Source : (1) Minister of Education and Research, Year 2011, Survey 2013(2) Minister of Education and Research, Year 2010, Survey 2013

803/03/2014

Overview

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It’s true that Paris is a romantic citybuilt on 2,100 years of History

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It is also undeniable that Paris is the worldcapital of creation & fashion

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Question :

Is Paris Region just an historical and creative

Center?

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No, Paris is much more than that. It is:

1. A young, skilled and dynamic region2. The largest economy in Europe3. A cosmopolitan City-Region4. A high value and diversified economy5. With transportation infrastructure expanding

through the Grand Paris Project

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Let’s start by some key information about theParis Region

The political and economic hub of France

The city of Paris sits at the heartof the Paris Region, the most

densely populated area withinFrance

The headquarters location for most of the largest

national and international companies

Providing a highly skilledworking population across

all business sectors

An excellent location in Europe positioned midway

between northern and southern Europe.

Within a 2-hour flight of major European cities.

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A young, skilled and dynamic region

• Home to 12 million inhabitants:19% of the population of France on only 2% of the country’s landmass

• 2.5% of the overall European population

Europe’s most populated urban area A young and well educated population

• 60% of the population is less than 40 yearsold.

• 40% hold a university degree

• 1,1 million of new habitants in less than 20 years: 54,000 per year !

• Region with largest university population -640,000 – in Europe

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The largest economy in Europe

• 1st GDP in Europe ; 600 billion euros

• Contributing to 30% of the overall GDP withinFrance and 5% of the overall GDP of Europe

One of the most important economic

hubs in the world

The 2nd highest spending power within

Europe

• Large proportion of high calibre jobs � 2nd

highest earnings per head in Europe

• 6 million jobs (2010). The most dynamic job market in France

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A cosmopolitan City-Region

A significant proportion of foreign

workers

• Representing 15% of the workforce

• 200 nationalities

• 20% of foreign students in our universities

2nd most important destination in Europe

for international investments

• 200 foreign companies set up subsidiarieseach year.

•• 13,000 foreign companies arelocated in the

Paris Region (27% of France).

• 18% of the regional employment depends on foreign companies

• #3 world’s largest concentrationof Fortune 500 Headquarters.

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A high value and diversified economy

• The service sector, represents 80% of the workforce.

• 1st in Europe for the creative industries: 308,000 jobs

• Still, industrial activity remains important comparedto other metropoles in Europe. Strong industrialsectors like pharmaceutical, automotive and aerospace industries include their R&D and high-tech activity in the region. They contribute to the majorityof all exports from the region.

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Competitive infrastructure

• Key hub for both passenger and freight traffic.

• The Paris Region provides an extensive and welldeveloped transport infrastructure:� Paris airports are Europe’s 2nd largest airport

handling more than 90 million passengers eachyear.

� Paris Charles-de-Gaulle airport is the largestfreight airport in Europe.

� Le Bourget is the n°1 business airport in Europe.� 7 high speed train stations link to other

European capitals

• A public transport network includes :� 14 metro lines within Paris -4 million passengers

a day-, � 13 regional trains : 5 express regional trains

cross rail lines serving the wider Paris Region(RER) and 8 regional trains (Transilien)

� 6 Tramway routes, in suburbs

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The ‘Nouveau Grand Paris’ : an exceptionalEconomic DevelopmentProgramme

Aims at boosting and expanding the city Region’s international position

New Business Areas

Development of new districts in theRegion to foster growth in research,finance, aeronautics, creativeindustries, etc.

Large-scale urban development

100 new mixed-used, sustainable,innovative neighbourhoods connectedto transport networks. Housingprogramme doubled: 70,000 newhomes per year.

Prioritising Mobility

A €32 billion ambitious programme fora new express metro (200 km and 72new stations) and for modernizing andexpanding existing transport networks(investment of €7 Billion by 2017)

Building an innovative sustainable

region

Latest technologies; commercialreal estate (state-of-the-art,competitive, well connected);urban planning responding toclimate change and energy needs.

2020

The ‘Grand Paris new districts’ and the new transport masterplan (in red).

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5 reasons to invest in Paris Region

1. A world leader

2. Get access to a multi-specialized R&D & innovation

3. Benefit from a large pool of talents

4. Global clusters & world leading facilities

5. Premium sites

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1. A world leader

n innovation agency located in Melbourne, AustraliaNB : The Innovation Cities Global Index classifies 445 benchmark cities (Boston Globe, NYT, Fox, ABC, Reuters…).

162 indicators taken into account (health, wealth, population, geography as well as potential relative to peers).

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1st in Europe for R&D

• 1st European Region for R&D:• 7.1% of European R&D expenditure -

€17.4 billion• 6% of EU’s combined private and public

research workforce -146,300 people

• Home to 40% of France’s R&D workers (FTE)

• 61,500 researchers work for private companies

Source : Eurostat & Paris Region Key Figures 2013 (FTE : Full time Employment)

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1st in Europe for the number of Europeanpatents filed.

Source : data European Patent Office (yr 2009) ; Statistics analysis Eurolio 2013

Paris Region: Breakdown of patents published (2011)

• 40% in Mechanics and Transport• 20% in Chemicals and Life Sciences• 20% in Electronics and Electricity• 11% in Instrumentation• 9% in Others

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1st in Europe for scientific publications

Source : Nature, March 2013

Source : Eurolio, 2014Paris Region accounts for 5% of the European scientific publications

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The example of Physics

Example : The Top 20 world cities in Physics from 1990 to 2009

Source : Nature, March 2013

Orsay (District of Paris Saclay) is located in the South of the Paris Region. It’s the expansion of Paris.

Source : Nature, April 2013.

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2. Multi-specialized R&D Innovation

A combination of world-class economic sectors

Paris Region’s wealth-generating multi-specialist economic profile is unique in Europe. The region’s diversified economy, made up of many interlinked activity sectors, sets it apart from other global metropolitan regions.

12 major sectors of excellence with an exceptional concentration of contractors, a highly-developed labourmarket including specialist training and higher education institutions, a vibrant SME sector, research and innovation centers, logistics facilities, and a host of dedicated suppliers and service providers.

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R&D and Innovation : they arealready here

Main public research laboratories:

- the National Scientific Research Centre (CNRS) - the National research institute for biology, medicine and health (INSERM),- The CNRS (French government agency for space)- INRIA, a Public Science and Technology institution dedicated to computational sciences- The IRSTEA (CEMAGREF), National Research Institute of Science and Technology for Environment and Agriculture - the Atomic Energy Commission (CEA)- the Research and education in aerospace science and technology (ONERA), - the fondations : Institut Pasteur, Institut Curie, Fondation des Sciences de l’Homme- and many more: IRD, Ined, IGN, Insee, Cepii, Credoc, etc.

Main private laboratories (more than 200 people):

- Air Liquide- Alcatel-Lucent- Alstom (Groupe)- Altis Semiconductor- Astrium- Bio-Rad-Continental Automotive- Cosmeva- Dassault Aviation, - Eurocopter- EADS,- EDF - France telecom /Orange R&D, - GE Healthcare- Groupe SAFRAN (Sagem, Snecma, Hispano-Suiza,.. ), - L’Oréal- MBDA France- Nextiraone- PSA Peugeot-Citroën- Renault-Sanofi- Segula Technologies- Siemens Transportation Systems- Sorin Cardiac Rhythm management- Stallergenes-Thales,- Thomson Grass Valley France- Véolia, - ValeoSources : PREDA, STRATER, Usine Nouvelle

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Made in Paris Region

© Siemens Autolib

© Safran © Mac Guff

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3. The universities Communities provides skilled workers

12 universities communities bring together universities, « Grandes Écoles » and research centres.

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Higher Education

• World-class universities: École Normale Supérieure d'Ulm1, École Polytechnique1, University of Paris-Sud1, University of Pierre-et-Marie-Curie1, University of Paris Diderot1, University of Paris-Descartes2, University of Paris-Dauphine2, École Supérieure de Physique et de Chimie (ESPCI ParisTech)2 and Mines ParisTech2 rank among the world’s top universities in the Shanghai Academic Ranking of World

Universities and in the Times Higher Education Ranking.

(1 in both rankings, 2 in Times Higher Education ranking)

• Excellence in Sciences

- In Mathematics: 3 Paris Region universities in the top 20 of the Shanghai Academic Ranking of World Universities 2012

- In Physics: 1 Paris Region university in the top 20

• Leading business, engineering and political schools: HEC Paris, ESCP Europe, CEMS, ESSEC Business School, INSEAD, École Polytechnique, ENA, Sciences Po Paris, Mines ParisTech and Ecole des PontsParisTech are among the best schools according to the Financial Times and the École des Mines ParisTech rankings

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4. Our competitiveness clusters, Your Success

9 competitiveness clusters

enhancing innovation

Our clusters bringing together business, research centers and training institutions to stimulate innovation.

5,700 collaborative R&D projects have been undertaken since 2005; more than 600 foreign companies established in France are members of innovation clusters. (Source: French Ministry for the Economy and Finance (DGCIS directorate), 2013)

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NEUROSPIN, a research centre

dedicated to neuroimaging

Tera 100, the first

supercomputer in Europe

Nano-INNOV, the leading

infrastructure for nanotechs

SOLEIL. French national

synchrotron facility

• All those cutting-edge inventions & discoveries wouldnot have been possible without top researchinfrastructures & equipments.

• Paris Region is home of 14 French major researchinfrastructures

Get access to leading R&D Infrastructures

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5. Premium sites

Paris, from La Sorbonne to start-up Paris Saclay, The new High Tech Cluster Cité Descartes, Sustainable Cities Cluster

Génopole, science and business biopark Cergy-Pontoise, New Ideas for Industry SO Digital, Innovative Cluster

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WE ADVISE & ASSIST COMPANIES THAT SEEK TO

START, EXPAND OR RELOCATE BUSINESS ACTIVITIES IN THE REGION

Our answers to your business location needs

� Finding premises�Offices, warehouses, sites, etc.

�Costs of purchasing and renting

�Accompanying you on site visits

�Occasional use of our offices

� Getting to the market� Information on your business sector

�Technological/commercial meetings

�Access to public partners

�Communication on your presence

� Finding staff�Recruiting local personnel

�Supporting your expatriates

� Information on employment contracts

�& social security issues

� Setting up�Legal & red tape advice

�Fiscal information

�Financing / subsidies

�Providing contacts

How we can help you to succeed

Our services are free, confidential and customized

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Some of our Successful Clients

Your Contact :

Vincent GOLLAIN, Chief Regional Marketing Officer

Paris Region Economic Development Agency

vgollain(at)paris-region.com

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