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A business environment both reliable and innovation-friendly

A business environment both reliable and innovation-friendly

France is a major destination for international investors in Europe and offers interesting schemes favouring R&D and innovation. The country is also engaged in significant reforms to simplify the business environment.

R&D and innovation: national priorities

As the third world player in innovation, France favours R&D through a strengthening of its 71 competitiveness clusters, of which 18 are designed to go global. They make particularly interesting environments for international investors. Companies that settle in those environments gain access to efficient research centres and networks of partners, suppliers, sub-contractors and clients.

Other schemes are in place to support companies and innovation. The new public bank of investments (Bpifrance) has a financing capacity of 42 billion euros. The French research tax credit (CIR, for crédit d’impôt recherche) is the most efficient tax incentive scheme for R&D in Europe, with about 20,000 member companies, including 2,000 foreign companies.

A simplified business environment

In order for its administrative, legal and fiscal framework to be efficient in the creation and development of companies, France is carrying out ambitious reforms. The aim is to modernize the public action, reduce legal constraints, offer a clear and predictable fiscal system and simplify the business environment.

Reforms at the service of companies’ competitiveness

Reduction of labour cost through tax credit for competitiveness and employment (CICE, for crédit d’impôt pour la compétitivité et l’emploi), reduction of general costs and support to employment through the responsibility pact, labour market reform for more flexibility… Since 2012, France has engaged in a reform process in order to increase companies’ competitiveness. Last but not least, the country has adapted its legal framework to facilitate the hosting of international companies.