Competitiveness clusters Policy in France Alain Griot Directorate 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 of Competitiveness 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 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 : Location: Paris Region Project partners :  Firms : Nortel, Thal è s, Alcatel, Bull, EADS, Dassault, France T é l é com, 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 Concerned government bodies Central Gov’t Local gov’t (“regions”, main cities, etc.) Ministries & agencies Local representatives of central gov’t Co- ordination between the “triple helix” players Co- ordination between local & central gov’t

Clusters support measures + local authorities financing M€ 100 M€Central Government 587 M€Innovation agencies Subsidies 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

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 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.

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