1 Project supported by the European Commission Financial support to eco-innovation in Ile-de-France Region : Final conference – Milano (14 th of December, 2007)

2 Ile-de France Region  11,5 million inhabitants, living on a territory of km 2 ;  researchers working in public/private labs settled in Ile-de- France Region ;  About 30% of the French GDP (= The Netherlands/The Republic of Taiwan/the State of Florida) ; 5% of the European GDP ;  jobs in eco-industries & ecoservices in 2006, generating 15 billions euros ;  8 public-private clusters («pôles de compétitivité »), among which MOV’EO and Ville et Mobilité Durable, involved in R & D programs connected to eco-innovation topics ;  A goal : to become « the first eco-region in Europe »

3 A full range of instruments in Ile-de-France Region N.B. The following statements apply to all financial support instruments funded by the Region and dedicated to innovation, not only to eco-innovation. Financial support to research programs and SMEs eco-innovation:  Subsidies or repayable advance if the business is successful, granted by the Region or by OSEO to industrial or services companies with a limited number of employees  Financing 50 to 75% of the cost of a technology expert consultant FOCUS on ARITT-Innovation : Regional subsidy for innovation and technology transfer (l’Aide régionale à l’Innovation et au Transfert de Technologie – ARITT)« feasibility » and « transfer » « Feasibility ARITT » is a subsidy granted by the Region for a feasibility study conducted before a technology transfer. It covers 50 to 75% of the cost of the study, up to €. « Transfer ARITT » is granted by the Region to industrial or services businesses counting less than 250 employees and wanting to have a public or private research laboratory developing an innovating project for them. The State is paying 50 to 75% of the cost of the laboratory service, up to € Financial support to eco-innovating businesses through the first years  Loans without interest (« Prêt d’honneur »)  Security funding  Participative early-stage loan  Equity participation by early-stage funds  Venture capital Regional support to eco-innovating clusters (MOVEO, VMD), eco-innovating networks

4 Structural weaknesses of financial support to Eco- Innovation in Ile-de-France Region  A full range of devices but a offering a general mapping complex and scattered  Limited offered amounts and number of helped projects, which may be surprising in the first region in Europe.  Excessive personalization of the access to financial support  Lack of coordination between the different actors involved in the funding chain (Region, private capital holders…), who are following their own strategy  A regional intervention in early-stage and venture capital not really different from private interventions whereas the Region has its own territorial strategy, (helping innovative new business creation and development but also reducing territorial inequalities)  Lack of global reporting to keep a general track record of the supported projects all along their life, from eco-innovation to eco-innovating businesses

5 But a will to do better  A regional strategy elaborated after an intense consultation : the Economic Development Regional Scheme (Schéma Régional de Développement Economique, SRDE) – october, 2006 : A better coordination of the different instruments supporting eco-innovation (especially to close the gaps in the financing chain) Developing eco-products and eco-services industries and reducing territorial inequalities  Creation on February 2007 of a loan without interest fund managed by Scientipole Initiative, dedicated to eco-innovating SMEs  Creation on November 2007 of a early stage equity fund managed by CapDecisif, which will be able to take shares into eco-innovating businesses from to euros  Launch of the Ile-de-France’s SMEs packaged subsidies (investment, export, executives recruitment, consulting) targeting on jobs SMEs among which a good part in eco- industries and eco-services which schedule to develop abroad (amount : max € per SME within a period of time of 3 years) TO BE DECIDED :  A new funding device : a regional fund of funds to increase the global efficiency of its financing instruments range Putting together public and private funds (among which European funds) Every link in the funding chain will be invested in by the Region, according to qualitative (which businesses, which project to support?) and quantitative criteria. Every financer will be represented in the governance of this fund, even if the Region will keep a prevailing vote in order to be able to give the decisive impulsions.  “Clustering” the Ile-de-France’s eco-innovating players to boost their will to collaborate on R & D, strategic intelligence issues

6 Topics to explore  Making the distinction between high-tech and low-tech technologies/services fully operational High techs : equity, with high ROI : pre-seed & seed equity, venture capital Low techs : bond/« patient equity » (co-investment funding)  Adopting a comprehensive definition of eco-innovation : starting from scratch eco-innovating businesses pioneering new technologies/services + already established SMEs converting their processes to sustainable development (decreasing damages to environment caused by their activities) ;  Accelerating the transformation of R & D into businesses thanks to a multi- partners platform pooling various know-hows and means (Ile-de-France Region, Ile-de-France Region’s Center for Innovation, other public/private partners)

7 Ile-de-France Region’s expectations  Driving the UE subsidies from CIP or other European programs to the IdF funding devices  At the regional level, maintaining the « team spirit » born during the last 9 months between Ile-de-France Region, eco-innovating players and their supports (banks, VCs …)  At the European level, confirming the partnership of Ile-de-France Region within a widely opened ECREINetwork where could be confonted experiences, opinions, informations