10 reasons to invest in france en
- 1. January 2014 10 reasons to invest in France www.investinfrance.org / www.sayouitofrance-innovation.com
- 2. 1. A global economic power France: The 2nd largest economy in the European Union. (IMF, 2013) The world’s 6th largest exporter of goods and 5th largest exporter of services. (WTO, 2012) 31 French companies among the world’s leading 500. (Germany: 29, United Kingdom: 26) (Fortune Global 500, 2013) A diversified, advanced industrial base: - Europe’s largest aerospace and nuclear industries. (Eurostat, 2012 ; PwC, 2011) - Europe’s second largest chemicals industry. (French Chemicals Industry Federation (UIC), 2013) - Europe’s third largest agri-food industry. (French Ministry of Agriculture, 2012) - Europe’s fourth largest ICT industry. (Business Wire, 2012) Top 5 economies in the European Union GDP 2012 (current prices, US$ billion) (IMF, “World Economic Outlook” database estimates, May 2013) 3 401 2 609 2 441 2 014 1 352 0 500 1 000 1 500 2 000 2 500 3 000 3 500 4 000 Germany France United Kingdom Italy Spain
- 3. 2. A country open to inward investment Europe’s leading recipient of foreign investments in industry. (Ernst & Young, 2013) Europe’s leading recipient of job-creating investments from the United States. (Ernst &Young, 2013) The 5th leading recipient of FDI in the European Union: US$25 billion of inflows in 2012. (UNCTAD, 2013) Key figures 13 The average number of foreign companies that decided to invest in France every week in 2012. 39 The number of source countries of foreign companies that invested in France in 2012. 6,960 The number of job-creating foreign investments in France in the last 10 years. (IFA Report, 2012) Over 20,000 foreign companies already doing business in France: Employing around 2 million people Accounting for 29% of all business enterprise R&D expenditure in France And one-third of all French exports (INSEE / French Ministry for Higher Education and Research, 2012) Foreign companies account for 43.3% of holdings in the market capitalization of CAC 40 companies. (Banque de France, 2012)
- 4. 3. A dynamic market and gateway to Europe, the Middle East & Africa France: - The 2nd largest market in Europe: more than 65 million inhabitants. - The world’s leading tourist destination: 83 million foreign tourists. - 2nd highest birth rate in Europe: France is responsible for more than half of the natural population increase in the European Union. (Eurostat, 2013; UNWTO 2013) France is at the heart of the European Single Market (27 countries), the world’s leading economic region by GDP with over 500 million consumers. (Eurostat, 2013; European Commission (AMECO database), 2013) France has the 2nd highest household saving rate in Europe: 15.7% of gross disposable income, compared with an EU-27 average of 11% in 2011. (Eurostat, 2013)
- 5. 4. Excellent connections throughout Europe and worldwide Two French ports in Europe’s Top 10 by tonnage in 2011: Marseille (5th) and Le Havre (8th). (Port of Rotterdam Authority, 2012) The 2nd largest high-speed rail network in Europe. (International Union of Railways, 2013) Largest road network in Europe (more than 1 million km / 620,000 miles). (Eurostat, 2013) Paris Charles-de-Gaulle: ranked 2nd by passenger numbers and 1st for cargo in Europe. (Airports Council International, 2013) Paris-Le Bourget: the leading business airport in Europe. (ADP Paris Airports, 2013) Broadband penetration rate higher than the OECD average (35.5% in France, versus 33.8% in Germany and 33.6% in the UK) (OECD, 2012) Le Havre awarded “Best Seaport Europe” in 2013 for the third year running by “Cargonews Asia” magazine.
- 6. Cost index (Base: 100 – United States) Electricity rates for manufacturers 2nd half of 2012 Germany: €87 /MWh (exc. VAT) France: €67 /MWh (exc. VAT) UK: €115 /MWh (exc. VAT) Consumption between 500 and 2,000 MWh (Eurostat, 2013) Very competitive electricity rates *Cost components: Labor Facility costs Transport Utility costs (electricity, natural gas, telecommunications) Corporate tax Average costs per employee (wages, salaries and statutory costs) are lower in France than in the Netherlands, the United States or Germany. (KPMG, “Competitive Alternatives”, 2012) As a proportion of GDP, carbon dioxide emissions by French industry are lower than in the United Kingdom, Japan, Germany and the United States. (IMD, “World Competitiveness Yearbook”, 2012) 5. A cost-effective location Business setup and operating costs* are lower in France than in Italy, the United States or Germany. (KPMG, “Competitive Alternatives”, 2012) 94,5 94,7 95 96,1 97,9 100,1 103,7 109,4 85 90 95 100 105 110 115
- 7. (Eurostat, 2013) Human resources in Science and Technology Proportion of 20- to 29-year-old graduates (2010) 6. A high qualified, highly productive workforce High proportion of 25- to 34-year-old tertiary education graduates (43%), greater than the OECD average (38%). (OECD, “Education at a Glance”, 2012) France is ranked 3rd in Europe for hourly labor productivity. (The Conference Board, 2013) Country Average number of hours usually worked per week by managers Average number of hours usually worked per week by employees France 44.6 36.5 United Kingdom 43.6 36.3 Germany 43.1 34.7 European Union (EU27) 42.8 36.3 Longer working hours than the European Union average: (Eurostat, 2013) 24.2% 21.5% 20.1% 18.7% 18.7% 18.3% 17.2% 16.5% 16.5% 15.8% 0 5 10 15 20 25 30
- 8. The competitiveness and employment tax credit (CICE) will reduce labor costs by 4% in 2013, and by 6% from 2014, amounting to €20 billion in savings for companies. This tax credit is calculated in proportion to the company’s gross payroll costs, excluding all salaries greater than 2.5 times the national minimum wage (SMIC). France’s research tax credit remains the most attractive R&D tax incentive program in Europe: - Tax break of 30% of annual expenses, up to €100 million, and 5% above this threshold. - This rate is doubled for R&D carried out with public-sector bodies and is quadrupled for R&D undertaken by junior final-year doctoral and post-doctoral research personnel in their first two years of employment. - Extension of eligibility to include innovation expenses incurred by SMEs starting in 2013. - The research tax credit will remain unchanged for five years, giving companies to provide businesses with visibility and legal security. France is ranked very favorably by effective* corporate tax rates: - in 1st place for R&D operations, ahead of the United Kingdom (5th) and Germany (11th). - in 6th place for manufacturing operations, ahead of Germany (10th) and Italy (13th). * rate which takes into account the tax bases in different countries (KPMG, “Competitive Alternatives”, 2012) More than 2,000 foreign companies among the beneficiaries of the research tax credit between 2008 and 2010. (French Ministry for Higher Education and Research, 2012) 7. Tax measures to foster competitiveness
- 9. France is the 3rd leading recipient in Europe of foreign R&D investments. (Ernst & Young, 2013) 26 research and higher education hubs (PRES) enabling universities, Grandes Écoles and research bodies to share resources and launch joint initiatives. (French Ministry for Higher Education and Research, 2012) 11 Fields Medals awarded to French mathematicians, out of a total of 52 since 1936. (International Mathematical Union, 2013) France has 9.1 researchers per 1,000 employees, ahead of Belgium (8.6), the United Kingdom (8.3), Germany (7.9) and Spain (7.0). (OECD, “Main Science and Technology Indicators”, 2013) France is world’s 5th leading host country of foreign students. (OECD, 2012) Foreign R&D investments: More than 200 foreign investments in R&D since 2007, and 45 projects in 2012. (IFA 2012 Report) 8. A country prioritizing R&D and innovation France is ranked 2nd in Europe and 6th in the world for the number of international patents filed. (WIPO / INPI, June 2012) 71 innovation clusters stimulating R&D through public-private partnerships. 608 foreign companies have become members. (French Ministry for the Economy and Finance – DGCIS directorate, 2012)
- 10. 9. Investment at the heart of growth Continuing “National Investment Program” (state support to finance projects of excellence): €2.2 billion were reallocated at the start of 2013 towards the government’s priorities. Five areas were chosen: support for innovation and specialist sectors; development and distribution of generic technologies; training; energy transition; and the development of the living economy and healthcare. In early July 2013, the Prime Minister announced a new phase of the “National Investment Program” worth €12 billion over the next ten years. The new “Grand Paris” project: The new “Grand Paris” project announced in March 2013 is designed to promote economically sustainable, solidarity-based, job-creating development in the Paris region. The emphasis will be placed on research, innovation and industrial development across an area that currently boasts 80,000 researchers, seven innovation clusters and 850 research laboratories. A €32 billion program to modernize and expand existing transport networks: RER high-speed metro, metro, light rail. Breakdown of investments under the new phase of the “National Investment Program” (€ billion) (French Prime Minister’s Office, July 9, 2013) “Grand Paris Express” - a whole new metro system: - €25 billion in investments for the « Grand Paris Express » network - 125 miles of new automatic metro lines and 72 new stations - improved service to key economic hubs and airports
- 11. France is the leading tourist destination in the world by visitor numbers (ahead of the United States and China). (UNWTO, 2012) France is ranked joint second in Europe for quality of life. (International Living Magazine, 2011) Paris: A world-class city - The leading regional economy in Europe, with a GDP of €600 billion. (Paris Region Economic Development Agency, 2012) - The leading city in the world for quality of life. (PwC, “Cities of Opportunity”, 2012) - Most popular location in Europe for “Fortune Global 500” company headquarters in 2012. - The 2nd leading city economy by “economic clout” in the world. (PwC, “Cities of Opportunity”, 2012) - The 2nd most innovative and creative city in the world. (Global Innovation Agency, “Innovation Cities Top 100 Index”, 2012-2013) - The 2nd most popular venue in the world for conferences. (International Congress and Convention Association, 2011) - The 2nd largest center in the world for asset management. (Paris Europlace, 2012) 10. Renowned quality of life Country Rank (Overall score) Malta 1 France =2 Belgium =2 Germany =3 Austria =3 (International Living Magazine, 2011) Top 5 countries in Europe for quality of life Nine criteria considered by International Living: Cost of living (15%); culture & leisure activities (10%); economy (15%); environment (10%); freedom (10%); health (10%); infrastructure (10%); security and risks (10%); climate (10%).