DigitalEntrepreneurshipMonitor

Côted’Azur:Anchoringitsleadingposition

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Côted’Azur:anchoringitsleadingposition

©LeonidAndronov/Shutterstock.com

The Côte d’Azur is often seen as a global leader in the use of Information and Communication Technologies (ICTs).Yet, its status has recently been jeopardized. In 2013-2015, Côte d’Azur witnessed the departure of a series of globalleading tech companies, such as Texas Instruments and Samsung. The region became suddenly confronted to ashortage of digital talents as the firms’ exit also meant losing their high-profile employees. Although TexasInstruments and Samsung were soon replaced by other large companies e.g. Intel and Huawei, their departure hasreinforced the need to develop forward-looking policies, responsive to a fast-paced digital territory.

Over the past decade, the MétropoleNice Cote d’Azur has become a globalleader in the use of Information andCommunication Technologies (ICTs).The Métropole Nice Cote d’Azursuccessfully shifted from a service-based economy relying heavily ontourism to an increasinglydiversified economy putting a greatemphasis on KETs.

Departure ofleading tech companieschallengestheMétropole

The impact of digital transformationon the economy of the MétropoleNice Cote d’Azur could have beenslowed down by the departure ofglobally leading tech companiesfrom the Metropolitan area.However, it also opened a wave ofopportunity to welcome new globalplayers.

In 2013, the closure of TexasInstrument was followed by thedeparture of Samsung only 3 yearsafter the implantation of its R&Dcentre in Sophia Antipolis. The waveof relocations recently reached apeak after the announcement of theimpending closure of the R&D centreof NVIDIA in Sophia Antipolis, onlyfew years after its set-up in the city.

Problemstatement

1 Recoveringfromthelossofmultinationalcompanies

The Métropole Nice Cote d’Azur isstill recovering from the disruptioncaused by the loss of the high-profilecorporate residents. The reasonthese tech companies are exiting ismainly due to strategic decisionsthat led to far-reaching internalrestructuring.

For instance, in the case of TexasInstruments, the failure to make thedigital shift was clearly the mainculprit. If the attractiveness of themetropolis was not questioned, thedepartures of these companiesreinforced the need for forward-looking local policies, responsive to afast-paced digital territory.

Source:TeamCôted’Azur1

Figure 1: Métropole Cote d’Azur

Successfullyretainingthelocaltalents

The local strategy to cope with thedeparture of these high profilecorporations focused on theretention of local talents. Thosehighly-skilled workers are perceivedas the backbone of the region’seconomy and the key enablers of thedigital transformation of localbusinesses.

In 2013, the launch of a jobprotection plan enabled Samsung totake over the laid off employees ofTexas Instruments.

With the departure of the leadingKorean mobile telephonemanufacturer, another employmentpreservation plan was created andthe 110 laid off engineers were hiredby the American company Intel andthe Chinese company Huawei (thathad recently opened its R&D site inSophia-Antipolis).

Adigitalstrategytoremainattractiveformultinationalcompanies

The digital strategy of the MétropoleNice Cote d’Azur aims to set themetropolis as the ultimatedestination for companies seeking toinvest in the fields of excellence ofthe territory.

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Source:TeamCôted’Azur1

Figure 2: Network of accelerators and incubators form an extended andvibrant ecosystem

Côted’Azur:anchoring itsleadingposition

If the Métropole Nice Cote d’Azur canbenefit from the presence of digitalchampions, the digitaltransformation of a higher share ofSMEs could bring about moresustainable economic growth andprosperity in the metropolis.

Adigitallyadvancedterritory

In 2011, the ICT Observatory of theProvence Alpes Cotes d’Azur (PACA)region conducted a survey on the ICTuse of regional SMEs. Survey resultsindicate that the purchase ofequipment and the creation ofwebsites are the most frequent typesof investments in ICT made byregional SMEs (accounting for 46%and 11% of SMEs investmentsrespectively).

With respect to new digitaltechnologies, only 26% of regionalSMEs have declared themselvesready to use cloud computingservices and 18% of SMEs are usingsocial networks.6

Over the past decades, themetropolis has become a Europeanleader in ICT, biotechnologies, e-tourism, e-energy and the silvereconomy. The priority given to thedigital transformation of businessesis reflected by the multiplepartnerships between the actors ofthe digital ecosystem which havespawned new initiatives,experiments and innovations.

Smartinvestments

The metropolis has emerged as apioneer in the ‘Smart Grids’ and‘Smart Cities’ sector. Thesesuccesses were made possiblethanks to the leadership of the localgovernment who gathered all thestakeholders of the digital ecosystemto create a shared vision ofterritory’s digital strategy.

BenefitsoftheICTsectorinCoted’Azur

EUR4bn inrevenue,55%inexports,9,000 jobs,2,500 dedicatedtoR&D7

ThepositiveimpactoftheICTindustry

Digital technologies have thecapacity to increase SMEs’ ability toinnovate and drive economic growthin the Métropole Nice Cote d’Azur.The sector of ICT already represents1,710 companies accounting for21,775 jobs in the Cote d’Azur.

Over the past decade, about 9,000jobs were created in the sector whichbrought over EUR 4 billion inrevenue. The digital transformationof a higher share of businesses is,therefore, poised to have a broadimpact on the economy of themetropolis.

Aworldleadingecosystem

Nice’s position in internationalrankings reflects that the Métropoleis a leading digital ecosystem. Nice isthe 4th Smart City in the worldaccording to Juniper Research’s 2015report3. The city was also the Winnerof IBM’s 2011 ‘Smarter CityChallenge4.

At the national stage, the MétropoleNice Cote d’Azur formed part of thefirst territories to be awarded the“French Tech” label5.

Realised benefitsandnewopportunities

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Source:PACAICTObservatory

Figure 3: Internet use by SMEs inthe PACA region [%]

Over800 foreign-ownedcompanies,accountingformorethan13,000 jobshavelocatedtotheNicebasinandthePlaine duVar area.²

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Key stakeholders

Métropole NiceCoted’Azuractsasfacilitator

The Métropole Nice Cote d'Azurplays the role of facilitator in thedigital ecosystem.

UniversityofNiceSophiaAntipolisactsasenabler

The University of Nice SophiaAntipolis represents a key enabler ofthe digital transformation. Theuniversity educates the talents thatwill enable the digitaltransformation of local businesses.

In addition, the involvement of theuniversity in numerous industry-academia collaborations alsoreinforces its role as an enabler ofdigital transformation.

Localbusinessesactasdrivingforces

Local technology businessesconstitute the driving force behindthe digital transformation oftraditional companies. Since 2009,Intel set its flag in the metropolis. Indoing so, Intel joined other globalgiants such as Gemalto, ARM,STMicroelectronics and MaximIntegrated Products.

Leading SMEs such as RivieraWaves,EASII IC, ASIC Design House,Electronic Design Centre and evenScaleo-Chip drive the digitalecosystem notably as they are at theorigin of the creation of severaldigital disruptions.

Côted’Azur:anchoring itsleadingposition

Driversandobstacles

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A

Drivers

Intermediaryorganisationsandclustersprovidestrategicsupport

Intermediary organisations andclusters such as The SophiaAntipolis-based SecuredCommunicating Solutions (SCS)Cluster are providing strategicsupport and guidance to local firmsand therefore act as key drivers forthe digital transformation.8

Keyinitiatives

ProvisionofOpendataPortalsenablescitizen-centredinnovation

The launch of an Open Data Portalmarks a reference point in the digitalagenda of the Métropole Nice Coted'Azur. The Open Data Portalprovides a wide variety of cultural,sport, administrative andenvironmental datasets related tothe territory Nice Côte d'Azur.9

The portal complies with theEuropean DCAT (Data CatalogueVocabulary) standard for datacatalogues interoperability whichfacilitates the access for regionalbusinesses.

The Métropole Nice Cote d'Azur hasorganised different workshops(notably during the annualInnovative City conference) in orderto gather the insights of local citizensand businesses on their data needs.

The aim of these workshop was toidentify optimal services whichwould bring added value to the OpenData Portal.

©startupstockphotos.com/Pexels.com

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The new egional Campus ofLearning: moving towards academicexcellence

The new Regional Campus ofLearning stands out as a referencepoint in the academic community.The 24,000m² campus will open in2017 and will welcome 1,800learners at the heart of the "Eco-Valley" of the Métropole Nice Côted’Azur.10

The objective of the new campus isclear: Ensuring young people havethe required skillset to meet thecurrent and future needs of regionalbusinesses. The campus aims toprepare students for the occupationsof the future by orienting its coursestowards tech sectors and promisingfields with high potential for growthin Cote d'Azur.

Overall, EUR 83 million will beinvested to build the campus. Theproject benefits from public fundingmade available by the national,regional and local governments aswell as the Chamber of Commerceand the PIA (Programmed'Investissements d'Avenir-Investments for the FutureProgramme) of the nationalgovernment.11

UniversityofNiceSophiaAntipolis:offeringaninnovativeapproachtoeducation

The University of Nice SophiaAntipolis is the second largestmultidisciplinary university inFrance. The university has developeda new concept and strategy to gatherall the Côte d’Azur higher educationcomponents under the umbrella ofUniversity of Côte d’Azur.

UniversityofNiceSophiaAntipolis:aninstitutiondedicatedtothegenerationofnewdigitaltalent

The University of Nice SophiaAntipolis also aims to strengthen itsdigital competence in order toattract internet-savvy students andresearchers from all around theworld. Through the reinforcement ofits digital focus, the university strivesto provide students with the rightskillset to facilitate their education-to-employment path.

Côted’Azur:anchoring itsleadingposition

Amyriad ofFab Labs makingMétropoleNiceCoted'AzuratrueFabTerritory

The Métropole Nice Cote d'Azuralready includes no less than 4 FabLabs:

• Based in Sophia Antipolis, SoFabis a Fab Lab located at the heartof the Sophia Tech campus;

• Ecolab is the brand new Fab Labof the CEEI, the main incubator ofthe Métropole Nice Côte d’Azur. Itgives access to digital andtechnological tools to makers,start-ups and the general public,and supports open innovation inthe territory;

• The Refabrique is a personal FabLab created by a Cannes residentopening up access to his owndigital tools to "makers" whocannot find them in the region.The Refabrique is a primeexample of a citizen initiativesupporting the digitaltransformation of localbusinesses;

• The NavLab of the Métropole NiceCote d'Azur illustrates theadaptation of the Fab Lab conceptto meet the needs of theprofessionals in the sailingindustry, a leading sector of theterritory. The NavLab or"Navigateur" Lab (SailorLab)offers a co-working space and ameeting point for sailors,entrepreneurs and creativeartists of the French Riviera.

For instance, the university recentlyjoined the EIT Digital Master Schoolinitiative and created a partnershipwith 5 top European universities(EIT ICT Labs) to deliver a masterdegree in "data science”.12

Building on these insights, it comesat no surprise that the University ofSophia Antipolis is commonlyreferred to as being highly dedicatedto the training of the digitalinnovators and entrepreneurs oftomorrow.

Numerousincubatorsandacceleratorsdrivingdigitaltransformation

The Métropole Nice Cote d'Azurhosts 9 incubators and 3accelerators. The incubators include:

• PACA Est Incubator;• Business Pole Sophia Antipolis;• CEEI Nice Côte d’Azur;• 27Delvalle;• PEPITE;• Inkubateur;• SKEMA Business School

incubator;• ParisTech Entrepreneurs;• EYE of EDHEC.

All these organisations participate inthe digital transformation strategy ofthe territory.

Company-ledacceleratorscomplementingtheroleoflocalincubators

The added value of the MétropoleNice Côte d'Azur lies in the existenceof company-led accelerators such as:

• the accelerator of the globalinsurance company Allian,

• Vinci Autoroutes (which designs,builds, finances and operatesmotorways in France);

• the future "Village" accelerator ofthe French bank Credit Agricole.

“TheregionalcampusofLearningwillenableregionalbusinessestofindtherighttalents”–JacquesLesieur,CEO,TeamCoted'Azur

RegionalCampusofLearning

EUR83million investedintoa24,000m2 campusfor1,800learners

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Côted’Azur:anchoring itsleadingposition

©MarinaDa/Shutterstock.com

Keyinfrastructures

Learninginfrastructuresorientedtowardsdigitaltechnologies

The Learning Centre located at theheart of the SophiaTech campusstands out as the new Library 2.0.The new Learning Centre which wasinaugurated in January 2015 offersinnovative and customised servicesto its target audience made up ofstudents, teachers, researchers,start-ups and clusters.13

Morethanauniversitylibrary

The learning centre provides aunique environment facilitating thecollaboration between the academicand business world. This meetingpoint includes various facilities andco-working areas aimed at spurringinnovation on the campus.

Promotinglocaltalents,notfactoriesorbusinesses

Some local or national governmentsfocus too much on the promotion ofheadquarter offices, factory facilitiesor campus buildings rather than onthe promotion of local talents.

During the restructuring strategiesof companies, public authoritiesshould concentrate their efforts onthe retention of regional talents inthe territory.

Cote d’Azur benefits from a pool ofuniversities which offer the region acontinuous stream of a highlyeducated workforce.

The region should, thus, shed a greatfocus on this human capital byincentivising talents which are newlyjoining the workforce to enjoy thefull range of business opportunitiesin the region, leveraging on itsrecognised quality of life.

B

Obstacles

"TheLearningcentre isanindividual,collectiveandmultipurposeworkingspace.”-FrederiqueVidal,PresidentoftheUniversityNiceSophiaAntipolis

Learningcentre oftheSophiaTech Campus

• 125m²showroomspace;• 245m²businessspace.

It includes:

• Showroom space: 125m²dedicated to exhibitions and tothe promotion of the scientificwork;

• Businesses space: 245 m²equipped with digital educationalresources (e.g. SMART Board), co-working spaces;

• The location of SATT South-East(Tech transfer accelerator) andKIC ICT Lab (Knowledge andInnovation Communities) on theLearning Centre aims to deepenthe connections with regionalbusinesses.

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Côted’Azur:anchoring itsleadingposition

CreationoftheSophiaTech Campusasacaseinpoint

The creation of the SophiaTechCampus is a prime illustration ofsuch a strategy. Opened in 2012, thecampus creates synergies betweenthe research laboratories of theterritory:

• INRIAMéditerranée;

• LEAT– CNRS/Universitylaboratoryofelectronics,antennaeandtelecommunications);

• theNiceSophiaAntipolisUniversity;

• engineeringschools.

The fruitful collaboration enablesthe training of engineers in the fieldsof excellence of the territory such asresearch networks, security andmobile communications.

E-governmentactivitiesasadriverfordigitaltransformation

In the Provence Alpes Cote d’Azurregion, one out of two SMEs use e-government services for taxdeclarations. If the primary purposeof e-government activities is toimprove the efficiency ofgovernment-business interactions,these online services also havedemonstration effects for local firmsand especially for SMEs.

For many companies, e-governmentactivities constitute a model foronline service delivery providingcompanies with new incentives totrust the security of onlinetransactions.

Monitoringinstrumentsareessentialtothesuccessofanydigitaltransformationstrategy

The creation of the IC Observatory“Ob’TIC” in the region PACA servesas a best practice example of aninitiative that enables policy makersto track the progress of their digitaltransformation strategy. Theperformance of a survey on ICT useat citizen, firm and local governmentlevels constitutes an effective way tocollect Key Performance Indicatorson the digital transformation of thewhole territory.

Aforward-lookingstrategyandasharedvisionofthefuturebusinesses

The existence of a shared vision ofthe future among local stakeholdersis a precondition for the success ofany digital transformation strategy.

In Nice, an advisory board gathersrepresentatives from localbusinesses and is led by thepresident of Amadeus, the global ITcompany. This advisory board wascreated by the economicdevelopment agency Team Coted’Azur to keep pace with the latesttechnological advances likely to havean impact on the local economy.14

This forward-looking approachenables local governments to adapttheir digital transformationstrategies prospectively, a must-havegiven the complexity of the digitaleconomy and its potential marketdisruption.

Theroleofuniversities:providingtherightskillstoenablethedigitaltransformation

The digital transformation of aterritory is only possible if localbusinesses have the right talents toharness the required digitaltechnologies.

In order to equip students with theskills needed by local businesses,universities must not only have anaccurate understanding of the skillsrequired by local companies but theyalso need to be able to providestudents with these requiredcompetencies.

In this regard, universitiessometimes need to acquire orreinforce their expertise inparticular areas. Strategies toimplement the required changesinclude, for instance, the creation ofpartnerships with other academicinstitutions already renowned in thesought-after sector.

LessonsLearnt

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KeyRecommendations5

References

Category Role of the stakeholder

Localgovernment

· Develop a territorial digital transformation strategy in collaboration with neighbouringlocalities

· Engage key stakeholders in long-term partnerships and build trust relationship between them(e.g. through the organisation of regular local meetings)

· Facilitate collaboration and cross-fertilisation between different industries and sectors· Invest in key infrastructures for a business-friendly environment such as smart transport

infrastructures, business offices, academic buildings· Develop open data platforms· Design strategies to retain local talents

Universities/Researchcentres

· Strengthen your digital competences (e.g. by seeking support from local tech champions)· Develop institutional strategies for capacity building· Retain and attract talents· Be proactive in the creation of a digital ecosystem around the university

Businesses · Collaborate with other stakeholders from the digital ecosystem· Innovate, create and apply digital technologies· Inform key stakeholders about your needs and seek for assistance when necessary

Clusters · Gain a deep understanding of your businesses· Inform local stakeholders about the strengths and needs of your businesses· Organise regular meetings with other clusters and local businesses

Incubators/Accelerators

· Provide inspiration, support and-stimulation to local businesses· Connect businesses with relevant stakeholders to enable their digital transformation· Provide spaces for people to meet and open space for cross-fertilization· Create synergies between the actions of the different accelerators and incubators of the

territory

Côted’Azur:anchoring itsleadingposition

ThisreportwaspreparedwiththesupportofPwC,CARSA,IDATEandESNaspartoftheDigitalEntrepreneurshipMonitorprojectfortheEuropeanCommission,Directorate-GeneralforInternalMarket,Industry,EntrepreneurshipandSMEs.Editors:LaurentProbst,BertrandPedersen,Olivia-KellyLonkeu,PwC©- 2016– EuropeanUnion.Allrightsreserved.CertainpartsarelicensedunderconditionstotheEU.ThispublicationisfundedundertheCOSMEprogramme oftheEuropeanUnion.

¹TeamCôted’Azur,http://www.investincotedazur.com/²TeamCôted’Azur,“NiceCôted’AzurandÉco-valléePlaineduVar– Why choose between quality oflifeandbusiness? “,2016,availableat:http://www.investincotedazur.com/en/nice-cote-dazur-et-leco-vallee-plaine-du-var/3 JuniperResearch,“GlobalSmartCity– 2015”,2015,availableat:https://www.juniperresearch.com/press/press-releases/barcelona-named-global-smart-city-20154 IBM,SmarterCitiesChallenge- NiceCôted’Azur,2011,availableat:https://smartercitieschallenge.org/assets/cities/nice-france/documents/nice-france-full-report-2011.pdf5 TeamCôted’Azur,“AttractingInvestments intheCÔTED’AZUR:ANNUALREVIEW2015,availableat:http://www.investincotedazur.com/wp-content/uploads/2016/07/annual-review-invest-in-cote-d-azur-2015.pdf6 Région Provence-Alpes-Côted’Azur,“ObservationdeladiffusionetdesusagesdesTechnologiesdel’Information etdelacommunicationen ProvenceAlpes-Côted’Azur,2011,Availableat:http://www.regionpaca.fr/etudesregionales.html?jumpurl=uploads%2Fmedia%2Fetude_com_obtic_barometre_2011_04 15_03.pdf

7 TeamCôted’Azur,“côte d’Azur:Jointhedigitalelite”,2015,availableat:http://www.investincotedazur.com/wp-content/uploads/2016/06/tca-passeport-it.pdf8 Guillame Roux,“SecuredCommunicatingSolutionsCluster”,2015,availableat:https://www.b2match.eu/cluster-to-cluster-2015/participants/4179 OpenDataNiceCôted’Azur,http://opendata.nicecotedazur.org/site/10 CESi,“CampusRegional Apprentissage :LaCCINiceCôted'Azur,leCESIetl'UniversitéNiceSophiaAntipolis lancentlevoletpédagogique »,available at:http://corporate.cesi.fr/actualites-campus-regional-apprentissage-la-cci-nice-cote-d-azur-le-cesi-et-l-universite-nice-sophia-antipolis-lancent-le-volet-pedagogique.asp11 FrenchSenate,“Projetdecampusrégionald'apprentissageNice-Côte-d'Azur »,2014:available at:https://www.senat.fr/questions/base/2014/qSEQ14110932S.html12 EITDigital,http://www.eitdigital.eu/13 NiceSophia Antipolis University,“LearningCentreSophiaTech“,availableat:http://bibliotheque.unice.fr/infos-pratiques/bibliotheques/sophiatech14 TeamCôted’Azur,“L’attraction d’investissements sur lacôte d’azur en2013”,2014,Availableat:https://issuu.com/ccinicecotedazur/docs/rapport_annuel_team_cote_d_azur_201