Cover of higher education & research in France, facts and figures

📄 Sources:MENESR-DGESIP/DGRI-SIES
OECD.

 Coverage:Whole of France.

The term ‘Research and experimental development’ (R&D) covers all work undertaken ‘on a systematic basis in order to increase the stock of knowledge and the use of this stock of knowledge to devise new applications’, according to the definition in the Frascati manual.

Gross national expenditure on research and development (GNERD) covers funding from French businesses or government for R&D carried out in France or abroad.

Gross domestic expenditure on research and development (GERD) covers R&D carried out within France (metropolitan France and French overseas departments and territorial authorities), regardless of the source of funding.

Total business enterprise expenditure on R&D corresponds to the sum of funding for gross domestic expenditure on R&D and that for R&D extramural expenditure implemented within the public sector, as well as funding for R&D extramural expenditure implemented abroad.

Government funding for R&D by businesses is understood to mean direct payments made by the government. It does not include tax incentives (indirect expenditure) such as the R&D tax credit (CIR) (chapter 31) or the ‘young innovative company’ (YIC) status (chapter 40), which constitute the main forms of tax relief used by the French government to promote R&D.

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34 funding and performance of R&D in France

Businesses based in France fund around 55% of the country’s gross domestic expenditure on R&D (GERD). Total expenditure on R&D by firms is €36.8 billion, which is 85% funded by companies in France and 7% by the government.

In 2014, businesses contributed €26.1 billion to R&D funding, representing 55% of gross domestic expenditure on R&D (GERD).

The level of funding by the private sector was much lower than that recorded in Japan (77.3), Korea (75.3%), Germany (65.8%) and the United States (60.9%) (chart 34.01). In the United Kingdom, businesses funded less than half of GERD (46.5%), 18.9% of R&D funding came from abroad, as compared with only 8% in France.

Total business enterprise expenditure on R&D (see ‘Methodology’ opposite) amounted to €36.8 billion in 2014. Self-financing of €27.2 billion and inter-business funding streams worth €6.4 billion together financed 91% of this expenditure in 2014 (chart 34.02a). Funding streams from businesses within the same group accounted for €4.9 billion of these €6.4 billion, while those between businesses belonging to different groups represented only €1.5 billion. In 2014, 7% of research work performed in companies was funded by public resources (chart 34.02b). International organisations, the European Union and above all funding from the French government accounted for the remaining funding for R&D expenditure by businesses, €0.6 billion and €2.75 billion respectively (chart 34.02a).

Government funding for R&D by businesses is understood to mean R&D contracts signed with dedicated State research institutions, as well as support measures provided by the State, whether direct or indirect. ‘Direct’ support is provided by means of subsidies, calls for tender and contracts supporting programmes that tackle key issues (table 34.03).

The research conducted may correspond to orders from government departments (€2.5 billion), in particular military allocations (€1.1 billion), from the Directorate General for Civil Aviation (DGAC) or work carried out by businesses and supported by organisations such as Bpifrance, the French Research Agency (ANR) or the Ministry of National Education, Higher Education and Research (MENESR). ‘Indirect’ government support takes the form of different tax incentives and repayable (where projects result in commercial success) advances, which are not included in this analysis. The most significant form of tax relief is the R&D tax credit (CIR), with a total of €5.6 billion paid out to 19,700 businesses based in France in 2013 (chapter 32).

Due to the importance of military R&D programmes, 45% of government funding for R&D contracts signed with businesses came from the French Ministry of Defence (chart 34.04). Such funding therefore remained highly concentrated within a small number of research areas. Four branches of activity received over half of government funding (62%): ‘manufacture of air and spacecraft and related machinery’ (31%); ‘manufacture of instruments and appliances for measuring, testing and navigation; watches and clocks’ (12%); ‘Specialised scientific and technical activities‘ and ‘manufacture of communication equipment’ (9% each) (chart 34.04).

 Coverage:Whole of France.

How to cite this paper :

DAVID Catherine. Funding and performance of R&D in France. In: Higher education & research in France, facts and figures - 49 indicators [online]. KABLA-LANGLOIS Isabelle (dir.). Paris: Ministère de l'Éducation nationale, de l'Enseignement supérieur et de la Recherche, 2017. 10th ed. Chapter 34 [Accessed 04/25/2019]. ISBN 978-2-11-152033-2. https://publication.enseignementsup-recherche.gouv.fr/eesr/10EN/EESR10EN_R_34-funding_and_performance_of_r_d_in_france.php

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The term ‘Research and experimental development’ (R&D) covers all work undertaken ‘on a systematic basis in order to increase the stock of knowledge and the use of this stock of knowledge to devise new applications’, according to the definition in the Frascati manual.

Gross national expenditure on research and development (GNERD) covers funding from French businesses or government for R&D carried out in France or abroad.

Gross domestic expenditure on research and development (GERD) covers R&D carried out within France (metropolitan France and French overseas departments and territorial authorities), regardless of the source of funding.

Total business enterprise expenditure on R&D corresponds to the sum of funding for gross domestic expenditure on R&D and that for R&D extramural expenditure implemented within the public sector, as well as funding for R&D extramural expenditure implemented abroad.

Government funding for R&D by businesses is understood to mean direct payments made by the government. It does not include tax incentives (indirect expenditure) such as the R&D tax credit (CIR) (chapter 31) or the ‘young innovative company’ (YIC) status (chapter 40), which constitute the main forms of tax relief used by the French government to promote R&D.

 

34.01 Proportion of GERD funded by businesses, the public sector and from abroad in 2014 in the major OECD countries 1

RU
 
CA
GB
EU28 3
US 3 4
SE3
KR
TW
 
 
IT 3
ES
FI
FR
OECD 3
DE
CN
 
JP
  
Businesses
Government 1
Abroad 2
 
 

1 Semi-finalised results.
2 Government, higher education and the private non-profit sector.
3 Including international organisations.
4 2013 data.
5 Excluding capital expenditure, funding from abroad is included in the other categories.

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34.02a Sources of funding for total business enterprise expenditure on R&D in 2014 (€bn) 1 2

Public funding
International organisations and European Union
Businesses
  
Other funding
Self-financing
Third party businesses
 
 

1 Semi-finalised results.
2 'Total business enterprise expenditure on R&D' corresponds to the sum of funding for intramural business enterprise expenditure on R&D and that for business enterprise expenditure on R&D implemented in the public sector and abroad.

 Coverage: Whole of France.

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34.02b Funding for business enterprise R&D provided by third party businesses in 2014 (€bn) 1

Non-group foreign businesses
Foreign businesses within the same group
Non-group businesses in France
Businesses in France within the same group
 
 

1 Semi-finalised results.

 Coverage: Whole of France.

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34.03 Public funding received by businesses in 2014 1 (in €m, in %)

 
2014
€M %
Major technological programmes 470 18
of which DPAC (Department of Aeronautical Programmes and Cooperation) 334 13
of which Ministry of Industry (STSI) 76 3
of which CNES (Government Space Agency) 55 2
Civil funding (government ministries, funding bodies, organisations) 847 33
of which Ministry of Research 0 0
of which Ministry of Industry (excluding STSI) and Bpifrance 2 100 4
of which Ministry of Environment and ADEME (Environment and Energy Management Agency) 376 15
Other funding (local authorities and associations) 93 4
Total civil public funding 1,409 55
Defence funding 3 1,139 45
Total businesses 2,549 100
 

1 Semi-finalised results.
2 The STSI is the technology and information society department within the Ministry of Industry.
3 Ministry of Defence (DGA) and military division of the CEA.

 Coverage: Whole of France.

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34.04 Government funding for military and civil R&D programmes carried out by businesses in 2014 1 (%,€m)

Other activities
Agriculture, forestry and fishing
Manufacture of fabricated metal products, except machinery and equipment
Manufacture of communication equipment
Manufacture of instruments and appliances for measuring, testing and navigation; watches and clocks
Manufacture of basic pharmaceutical products and pharmaceutical preparations
Manufacture of electronic components and boards, computers and peripheral equipment
Manufacture of motor vehicles
Manufacture of air and spacecraft and related machinery
Computer-related and information service activities
Specialised scientific and technical activities
  
Military funding
Civil funding
 
 

1 Semi-finalised results.

 Coverage: Whole of France.

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Related statistical publication

 Note flash - Enseignement supérieur & Recherche 03 - Les dépenses de R&D des entreprises en 2015 (données provisoires) - Florian Lezec - April 2017
En 2015, selon les données provisoires, les dépenses intérieures de recherche et développement des entreprises implantées en France (DIRDE) s’établissent à 31,8 milliards d’euros (Md€). Corrigée de l’évolution des prix, la DIRDE poursuit sa tendance à la hausse (+1,5 % en 2015) sur un rythme proche des deux années précédentes (+1,2 % en 2014, +1,0 % en 2013 et +2,9 % en 2012).

Other editions

Etat de l'enseignement supérieur et de la rechercheHigher education & research in France, facts and figures 9th edition - November 2016
35 - funding and performance of R&D in France - Catherine David
Businesses based in France fund around 55% of the country’s gross domestic expenditure on R&D (GERD). Total expenditure on R&D by firms is €33.7 billion, which is 85% funded (€28.5 billion) by companies in France and 8% (€2.7 billion) by the government [Consult the following page]
Etat de l'enseignement supérieur et de la rechercheHigher education & research in France, facts and figures 8th edition - November 2015
34 - funding and performance of R&D in France and by businesses - Catherine David
Businesses provide the majority (60%) of funding for gross national expenditure on R&D, with businesses based in France financing around 55% of the country’s gross domestic expenditure on R&D. This level of funding by the private sector is much lower than that recorded in Japan, Germany and the United States [Consult the following page]

Translation

 Etat de l'enseignement supérieur et de la rechercheL'état de l'Enseignement supérieur et de la Recherche en France n°10 - Avril 2017
34 - le financement et l'exécution de la R&D en France - Catherine David
Les entreprises présentes sur le territoire national financent environ 55 % de la dépense intérieure de recherche (DIRD). La dépense totale de R&D des entreprises de 36,8 Md€, est financée à 85 % par des entreprises situées en France et pour 7 % par les ressources publiques Le reste vient de l’étranger [Consult the following page in french]


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