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

In 2013, SMEs represented 17% of intramural business enterprise R&D expenditure (BERD), over half of which was invested in the service sector. Large enterprises, which accounted for 57% of BERD, focused three quarters of their R&D efforts in the high and medium-high technology industries.

Total intramural expenditure on R&D (BERD) of enterprises with establishments in France amounted to €30.7 billion in 2013 (table 29.01). Large companies were responsible for the majority of this expenditure (57%), while intermediate-sized enterprises (entreprises de taille intermédiaire – ETI) accounted for one quarter. In comparison with their intramural expenditure on R&D, SMEs offered more jobs in this area: they accounted for 17% of BERD, with 23% of R&D personnel.

In 2013, R&D accounted for 251,450 full-time equivalent (FTE) jobs in businesses, 64% 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 intermediate-sized enterprises and large enterprises (61% and 65% respectively) (chart 29.02). SMEs and intermediate-sized enterprises active in R&D exported more proportionally. Respectively, 30% and 34% of their turnover came from export, compared to 10% and 21% on average for all SMEs and ETIs (chart 29.03).

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 29.04). Conversely, 44% of R&D expenditure by large enterprises went towards high and medium-high technology industries (pharmaceutical industry, manufacture of computer, electronic and optical products; manufacture of air and spacecraft) and 31% went to medium to high technology industries. Three-quarters of R&D expenditure by intermediate-sized enterprises was industrial, but less specialised.

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 €2.7 billion in 2013. Large enterprises received 68% of this total (chart 29.05), intermediate-sized enterprises 11% and SMEs 21%. There was therefore less of a focus on direct funding for intermediate-sized enterprises in relation to their R&D expenditure.

Anna Testas