Strong government support for innovation
"Innovative new companies"
New businesses that invest in R&D and are registered as “innovative new companies” (JEI or JEU) are eligible for exemptions on income tax, corporate tax and local business tax.
– Total tax exemption during the first financial year, reduced to 50% thereafter
– Various social exemptions
84% of interviewed foreign companies considered France's research tax credit as a location factor for R&D investments
“France seen from abroad”, 2019
Combining the benefits
Eligible companies can combine the benefits of the research tax credit with those of the “innovative new companies” scheme (jeunes entreprises innovantes – JEIs), wich provides for corporate tax, local taxes and social security contributions over an eight-year period.
Innovation tax credit
SMEs are eligible for a 20% tax break on expenses incurred
by the design of prototype or pilot versions of new products
France’s Public Investment Bank offers companies financing solutions
for every step of their development
Major Investment Plan (2018-22)
€57 billion being invested by central government,
including €13 billion for innovation and competitiveness
54 innovation clusters
France’s innovation clusters bring together innovation players on a given theme in the same region, with an emphasis on the transfer of knowledge and technology between public-sector research and business.
France Attractiveness Scoreboard, Business France, 2021
of technology excellence
financed by public-private partnerships
in which companies,
public-sector educational institutions
and research laboratories work on collaborative projects