Competitiveness clusters Policy in France

Alain GriotDirectorate general for enterprises

Policy aims

Strengthening the link between research & industry promoting industry-driven research programs developing the “triple helix relationship” between firms, research

centres and higher education institutions

Identifying high-potential clusters and focus public aids on them avoiding scattering of public subsidies

Promoting joint research projects helping to reduce ever-increasing cost of R&D for firms

Official definition ofCompetitiveness Clusters

Combination, within a given geographic area, of firms, higher education centres and research units,

defining a common strategy aimed at generating synergies centred on co-operative R&D projects,

in order to reach the critical mass needed for international visibility in targeted technological fields.

« Pôles de compétitivité » are manufacturing industry oriented clusters (positive spillovers towards the

whole industry), secured on the national territory (strong local relationships between

industry and research will help against offshore outsourcing), putting the stress on innovation and R&D (key factor for

competitiveness in “high cost countries”, like EU), with international visibility (enforcing the idea of France as a high-tech

area)

The agenda

December 2004: launch of the call for proposal for a 3 months period

July 2005: 67 clusters selected on 105 proposals

September 2005 : first call for proposal for innovation projects

July 2007: 5 new clusters selected

August 2007: President Sarkozy announced the continuation of clusters initiative

December 2007: launch of the evaluation process (results forecasted for July 2008)

Locations:The Competitiveness Clusters in France.

17 are global ones

54 are smaller and more specialized

On the basis of a regional approach, but some are linking 2 regions or more.

French Clusters Case Study : IAR

Location: Picardie and Champagne-Ardennes Regions

Project Partners Firms: Faurecia, Sommer-allibert,

Omnium Plastic, a network of more than 220 companies and 26000 related jobs

Labs: INRA, INERIS, INSERM,CNRS, Compiegne technological university, Europol’agro,...

Schools : ENSAM, Compiegne technological university, Reims university, University of Picardy…

Technologies: use of agro products for industrial use, bio-refinery concept, biopolymers,

Markets: biomaterials, bio-fuels and bio lubricants, cosmetics, (specialty) chemistry

French clusters case study : SYSTEM@TIC

Location: Paris Region Project partners :

Firms : Nortel, Thalès, Alcatel, Bull, EADS, Dassault, France Télécom, Motorola, Renault, Sagem

Laboratories : CEA, INRIA, CNRS, DIGITEO

Schools : Ecole polytechnique, Ecole centrale, Supelec

Technologies : design of complex IT systems, hardware and software software and hardware technologies in electronics and opto-electronics

Markets : complex systems design, automotive/transportation, defense, telecoms,

Governance & oversight bodies

« POLE »Governance body

Firms

Research centers

Education institution

Concernedgovernment bodies

Central Gov’t

Local gov’t (“regions”,

main cities, etc.)

Ministries &agencies

Localrepresentativesof central gov’t

Co-ordination

between the “triple helix”

players

Co-ordination between local &

central gov’t

Clusters support measures

+ local authorities financing

1600+ M€

100 M€Central Government

587 M€Innovation agenciesSubsidies for R&D projects

160M€Tax incentives

Grand Total

Subsidies for others projects (e.g. HR)

33 M€Central GovernmentSupport for the management of the pôles

1467 M€Total for R&D

720 M€Central Government

M€ (3 year)Animation

What are competitiveness clusters?

A competitiveness cluster is: a gathering of firms, research centres & higher education institution, working on joint projects (mainly R&D projects) with a dedicated governance body (non-profit organization), and with dedicated public oversight bodies

All « clusters » are different : different strategies different priorities (outside R&D) different organisations (1 to 10 dedicated staff)

...but they all have to: define an innovation strategy, and implement a road-map to achieve it

R&D projects as « core business » Other priorities, depending on the cluster:

education recruitment international partnerships service delivery toward SMEs...

Priorities must depend on the strategy !

Key factors of success

Involvement of firms (as opposed to involvement of local authorities only and involvement of public research centres)

Local authorities should help and support, but not decide and meddle e.g. the cluster strategy must be decided by the cluster governance

(i.e. firms) Each cluster needs a specific support policy (at local level)

i.e. no « one size fits all »! All local innovation services must be cluster-oriented

i.e. it may request changing pre-existing organizations The cluster policy must be enforced in the long-term

e.g. time-to-market in R&D projects is a least 2 to 3 years

R&D Projects selections

Firms

Cluster governance body

R&D Project

Selection

Labs

Subsidies :- central gov't- local gov't- gov't agencies

Selection

helps building projects

Research projects financing

AAP 1 AAP 2 AAP 3 AAP 4 TOTALfinanced projects 75 68 100 70 313

projects amount(M€) 668 344 800 300 2 112

financing (M€) 113 80 153 86 432local authorities financing (M€) 73 30 80 47 230

financing rate 28% 32% 29% 44% 31%

Orientation for 2008 and beyond

The governmental institutional and financial support for the French clusters policy will be extended after 2008

No other new cluster will be selected before the end of 2008

The French clusters will be individually evaluated before July 2008. The evaluation will also concern the global policy.

Stress will be made on horizontal actions , such as training, IP, private financing

The international cooperation is a priority for French clusters and their companies

The 11 Evaluation criteria

Industrial & Research Strategy Cluster size evolution Governance & partnerships SMEs' involvement R&D projects results Localized projects & networking International influence Education & Human resources Infrastructures Sustainable Development Projects

International strategy

First level: to identify the best partners for the clusters With European partners and partners of developed countries Same technological level and ability to establish partnerships

Second level: to increase the relationship with partners to increase technological development Cluster to cluster partnership But the final beneficiary have to be enterprises

Third level: to create ability for the clusters to attract foreign investments and skills

Fourth level: to establish a cluster « trade mark » able to favor the international development of clusters companies

and their international business.

Some achievements

International strategy French clusters are leading interclusters creation in Europe 14 projects have been selected in a call for proposal in order to increase

international technological partnerships for clusters SMEs Life science corridor France (3 bio clusters) is now a recognized partner for foreign

clusters (kansai, Massachusetts,..) Foreign investment

Large investment from GSK in Nord Pas de Calais biotech cluster New investment to produce solar cells quality silicon in the south of France (from

Germany and the Nederland) in relationship with Capénergies and tennerdis clusters

A lot of new foreign SME’s joining the Minatech cluster (nanotech cluster) R&D projects

More than 500 new innovation projects, including projects supported by OSEO, the agency for SMEs innovation).

The initial budget will be over passed. More than 3000 new researcher jobs created

Training New aerospace campus in Toulouse, in close relationship with aerospace valley

cluster.

Fore more information on french Competitiveness clusters:

www.competitivite.gouv.fr

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