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

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

 Coverage:Whole of France.

The term ‘Research and experimental development’ 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’.

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 (crédit d’impôt recherche – CIR) or the ‘young innovative company’ (YIC) status, 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 and by businesses

This page has been updated. Read 34. funding and performance of R&D in France in Higher education & research in France, facts and figures 10th edition - June 2017

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.

In 2012, businesses and the public sector provided €48.4 billion in funding for R&D performed either in France or abroad. Businesses funded 60% and the public sector 40% of the country’s gross national expenditure on R&D (GNERD) (diagram 34.01).

In parallel, gross domestic expenditure on R&D (GERD), which covers all R&D performed within France, totalled €46.5 billion in 2012, €30.1 billion of which was implemented by businesses (intramural business enterprise expenditure on R&D – BERD) and €16.5 billion by the government (intramural government expenditure on R&DGOVERD). GERD was financed through cross-investment by French businesses (55%), the French government (37%) and funding from abroad (8%). The level of funding by the private sector was much lower than that recorded in Japan (76%), South Korea (75%), Germany (66%) and the United States (59%) (chart 34.02). In the United Kingdom, although businesses funded less than half of GERD (46%), 20% of R&D funding came from abroad, as compared with only 8% in France.

Total business enterprise expenditure on R&D (see ‘Methodology’ section opposite) amounted to €33.7 billion in 2012. Self-financing of €24 billion and inter-business funding streams worth €6.8 billion together financed more than 90% of this expenditure in 2012 (chart 34.03a). Funding streams from businesses within the same group accounted for €5.6 billion of these €6.8 billion, while those between businesses belonging to different groups represented only €1.1 billion (chart 34.03b). International organisations, the European Union and above all funding from the French government accounted for the remaining funding for R&D expenditure by businesses (€0.5 billion and €2.5 billion respectively) (chart 34.03a).

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 proposals and contracts supporting programmes that tackle key issues. ‘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 (crédit d’impôt recherche – CIR), with a total of €5.3 billion paid out to 15,300 businesses based in France in 2012.

Due to the importance of military R&D programmes, 48% of government funding for R&D contracts signed with businesses came from the French Ministry of Defence. Such funding therefore remained highly concentrated within a small number of research areas. Four branches of activity received almost half of government funding: ‘manufacture of air and spacecraft and related machinery’ (28%); ‘manufacture of communication equipment’ (10%); ‘manufacture of fabricated metal products, except machinery and equipment’ (9%); and ‘manufacture of instruments and appliances for measuring, testing and navigation; watches and clocks’ (9%).

 Coverage:Whole of France.

How to cite this paper :

DAVID Catherine. Funding and performance of R&D in France and by businesses. 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, 2015. 8th ed. Chapter 34, 78-79 [Accessed 04/21/2019]. ISBN 978-2-11-139433-9. https://publication.enseignementsup-recherche.gouv.fr/eesr/8EN/EESR8EN_R_34-funding_and_performance_of_r_d_in_france_and_by_businesses-ILL_03b.php

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The term ‘Research and experimental development’ 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’.

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 (crédit d’impôt recherche – CIR) or the ‘young innovative company’ (YIC) status, which constitute the main forms of tax relief used by the French government to promote R&D.

 

Key figures


Share of Gross domestic expenditure on R&D executed by firms
64%
 
2012
Whole of France
 
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Extract from the chapter "34. funding and performance of R&D in France and by businesses".

Source: MENESR-DGESIP/DGRI-SIES
Share of Gross domestic expenditure on R&D executed by government
36%
 
2012
Whole of France
 
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Extract from the chapter "34. funding and performance of R&D in France and by businesses".

Source: MENESR-DGESIP/DGRI-SIES
Intramural business enterprise R&D expenditure
30.1 bn
 
2012
Whole of France
 
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Extract from the chapter "34. funding and performance of R&D in France and by businesses".

Coverage: Prix courants
Source: MENESR-DGESIP/DGRI-SIES
Intramural Government R&D expenditure
16.5 bn
 
2012
Whole of France
 
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Extract from the chapter "34. funding and performance of R&D in France and by businesses".

Coverage: Prix courants
Source: MENESR-DGESIP/DGRI-SIES
  See more key figures  
Gross national expenditure on R&D by business enterprises
28.8 bn
 
2012
Whole of France
 
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Extract from the chapter "34. funding and performance of R&D in France and by businesses".

Coverage: Prix courants
Source: MENESR-DGESIP/DGRI-SIES
Gross national expenditure on R&D by government
19.6 bn
 
2012
Whole of France
 
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Extract from the chapter "34. funding and performance of R&D in France and by businesses".

Coverage: Prix courants
Source: MENESR-DGESIP/DGRI-SIES
Gross national expenditure on R&D
48.4 bn
 
2012
Whole of France
 
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Extract from the chapter "34. funding and performance of R&D in France and by businesses".

Coverage: Prix courants
Source: MENESR-DGESIP/DGRI-SIES

34.01 Funding and performance of research and development in France in 2012

 Coverage: Whole of France.

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34.02 Proportion of GERD funded by businesses, the public sector and from abroad in 2012 in the major OECD countries (%)

JP
 
TW
DE 3
OECD 3
SE 3
EU-28 3
GB
ES 3
 
 
KR
CN
FI
US 4
FR
CA
IT 3
 
RU
  
Businesses
Government 1
Abroad 2
 
 

1 Government, higher education and the private non-profit sector.
2 Including international organisations.
3 2011 data.
4 Excluding capital expenditure, funding from abroad is included in the other categories.

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34.03a Sources of funding for total business enterprise expenditure on R&D in 2012 (in €bn) 1

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

1 '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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34.03b Funding for business enterprise R&D provided by third party businesses in 2012 (in €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 '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 within the public sector and abroad.

 Coverage: Whole of France.

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34.04 Government funding for military and civil R&D programmes carried out by businesses in 2012 (%)

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

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Related statistical publications

 Note recherche 06.02 - L'externalisation de la R&D : quel arbitrage entre sous-traitance et coopération ? - Estelle Dhont-Peltrault, Etienne Pfister - March 2006
Parmi les entreprises externalisant leur recherche, deux tiers ont au moins une relation de coopération ou de sous-traitance en recherche et développement. Les stratégies de coopération sont les plus répandues ; la sous-traitance concerne plutôt les domaines de l'approvisionnement, de la production et de la distribution. La coopération ou la sous-traitance permettent l'accès aux compétences et moyens techniques nécessaires à la création de nouveaux produits ou procédés. L'externalisation de la R&D concerne surtout les entreprises à dépenses de R&D élevées et dans les secteurs de haute technologie. L'appel à des partenaires extérieurs relève du manque de compétences internes dans le domaine de la R&D. Les partenaires sont d'abord choisis pour leurs moyens techniques, les critères de marché s'appliquant plus fréquemment aux sous-traitants. Les relations de sous-traitance sont donc plus sensibles aux prix, aux certifications de qualité et à la proximité géographique. En revanche, les relations coopératives s'établissent plutôt avec des partenaires publics ou étrangers. Qu'il s'agisse de sous-traitance ou de coopération, les relations externes ont pour but la réalisation de nouveaux produits et débouchent rarement sur le dépôt de brevet ou de publication scientifique. Les relations de sous-traitance sont plutôt asymétriques et de plus courte durée.
 Note recherche 05.01 - Les relations interentreprises en R&D - Estelle Dhont-Peltrault - May 2005
Si l'innovation est un facteur clef de la compétitivité économique, il est nécessaire de transférer et d'absorber des connaissances pour innover. La moitié des entreprises ont au moins une relation de coopération dans le domaine de la recherche et développement (R&D) et de l'innovation. Ces coopérations représentent un peu plus du quart de leur budget de R&D. La propension à coopérer augmente avec l'intensité de la R&D et l'intensité technologique, et celle-ci est plus fréquente dans les entreprises manufacturières de haute technologie et dans les entreprises de services en R&D. Les entreprises de petite taille ont une forte propension à coopérer et ceci tient au fait que le poids des entreprises de services est très important parmi elles. Plus des deux tiers des coopérations en R&D mises en place par des entreprises appartenant à un groupe se font avec des partenaires extérieurs au groupe et localisées dans une autre région de France. Ces coopérations hors groupe sont principalement motivées par l'acquisition et la création de ressources nouvelles. Lorsque la relation la plus stratégique est une relation hors groupe, pour 27% des entreprises, le partenaire est un laboratoire public ou universitaire de recherche. Les relations intra-groupes se distinguent par le fait qu'elles revêtent un caractère plus informel, qu'elles sont de long terme et imposées par le groupe.

Other editions

Etat de l'enseignement supérieur et de la rechercheHigher education & research in France, facts and figures 10th edition - June 2017
34 - 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 €36.8 billion, which is 85% funded by companies in France and 7% by the government [Consult the following page]
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]

Translation

 Etat de l'enseignement supérieur et de la rechercheL'état de l'Enseignement supérieur et de la Recherche en France n°8 - juin 2015
34 - le financement et l'exécution de la R&D en France et dans les entreprises - Catherine David
Le financement de la recherche nationale (DNRD) repose majoritairement (60 %) sur les entreprises. Les entreprises implantées sur le territoire national financent environ 55 % de la dépense intérieure de recherche (DIRD). Ce niveau de financement par le secteur privé est très inférieur à celui observé au Japon, en Allemagne et aux États-Unis [Consult the following page in french]


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