28 research and development (R&D) in small and medium-sized enterprises (SMEs), intermediate-sized enterprises and large enterprises

In 2012, SMEs accounted for 86% of enterprises carrying out R&D work in France. They represented 16% of intramural business enterprise R&D expenditure (BERD), half of which was invested in the service sector. Large enterprises, which accounted for 59% of BERD, focused three quarters of their R&D efforts in the high and medium-high technology industries.

In 2012, around 15,000 enterprises in France were doing some form of R&D work: 86% were SMEs, two fifths of which were micro-enterprises (table 28.01).

Total BERD of enterprises with establishments in France amounted to €30.1 billion in 2012. The 250 largest companies were responsible for the majority of this expenditure, while intermediate-sized enterprises (entreprises de taille intermédiaire - ETI) accounted for one quarter. Although small enterprises accounted for a smaller proportion of total BERD, their R&D intensity ¹ was greater than that of the largest companies. Micro-enterpises and SMEs (excluding micro-enterprises) allocated 26% and 7% of their turnover respectively to gross domestic expenditure on R&D (GERD), as compared with the 2% spent by large enterprises.

In 2012, R&D accounted for 246,700 full-time equivalent (FTE) jobs, 63% of which were R&D research or engineering positions. The proportion of researchers and engineers in businesses' R&D workforces was slightly higher in all SMEs (66%) than in ETIs and large enterprises (61% and 64% respectively; chart 28.02). SMEs had more R&D jobs in relation to their GERD. Although they represented 16% of total BERD, together they accounted for 23% of those employed in R&D.

Although half of all R&D expenditure by SMEs was spent by enterprises made up of a single legal unit, expenditure by ETIs and large enterprises was spent in large part by enterprises organised in groups (chart 28.03). Foreign-owned enterprises accounted for half of all R&D expenditure by ETIs. However, 90% of R&D expenditure by large enterprises was spent by French groups. Generally speaking, foreign-owned enterprises in France often take the form of ETIs.

The R&D work carried out by SMEs was largely devoted to the service sector: micro-enterprises invested three quarters and SMEs (excluding micro-enterprises) half of their GERD in this area (chart 28.04). Conversely, 74% of R&D expenditure by large enterprises went towards high and medium-high technology industries. R&D expenditure by ETIs was more varied.

Direct public funding for R&D (excluding tax relief and measures to reduce social security contributions) in the form of public subsidies and government contracts rose to €2.5 billion in 2012. Large enterprises received 67% of this total (chart 28.05), ETIs 10% and SMEs 24%. There was therefore less of a focus on direct funding for ETIs in relation to their R&D expenditure.

Anna Testas

¹ A company's R&D intensity is the ratio of its R&D expenditure to its turnover.