FRANCE’S INDUSTRIAL RENAISSANCE

#GETTINGTHERE 2 FRANCE’S INDUSTRIAL RENAISSANCE

FRANCE’S INDUSTRIAL RENAISSANCE

#GETTINGTHERE FRANCE’S INDUSTRIAL RENAISSANCE

#GETTINGTHERE 4 FRANCE’S INDUSTRIAL RENAISSANCE 5 EDITORIAL

EDITORIAL

France is at a defining moment.

Our assets are stronger than ever: a highly-skilled workforce, a world-class infrastructure, and a location at the heart of Europe, the largest economic market in the world.

Our economy is stabilized, diversifed and ready to grow strong again. Combining our unique industrial base, technological edge and leadership in services is key to our complete recovery.

We’ve got what it takes to get back in the game.

In fact, we are already back. 6 FRANCE’S INDUSTRIAL RENAISSANCE

Table of contents

08 #Checked

11 Improved competitiveness 12 Greater flexibility 27 13 New resources More stability

14 #TheWayToGetThere

16 We have what it takes 18 Solid know-how 20 29 Rolling up our sleeves Smart cities

22 #9Solutions

25 What is a “solution”?

31 Eco-mobility 7 Table of contents

33 39 Next generation transportation Internet Of Things (IoT)

35 41 Medicine for the future Digital safety

37 43 The data economy Healthy and customized food

#Che cked 9 #Checked #Che cked Competitiveness Flexibility Stability 10 FRANCE’S INDUSTRIAL RENAISSANCE 11 #Checked

Improved competitiveness

READY TO EXPAND OUR MARKET SHARE.

€40 billion ENHANCED PRICE COMPETITIVENESS: In three years’ time, we have reduced social charges and introduced tax breaks for businesses that total more than 2 percentage points of GDP – an absolute first.

€37.40 (Fr) vs €38.90 (Ge) HOURLY LABOR COSTS FOR INDUSTRY ARE NOW LOWER IN FRANCE THAN IN GERMANY1.

€5 billion TOTAL AMOUNT SAVED IN 2014 BY FIRMS UNDER FRANCE’S GENEROUS INNOVATION TAX CREDIT SCHEME.

1. Source: Eurostat, 2015 12 FRANCE’S INDUSTRIAL RENAISSANCE

Greater flexibility

FRENCH FIRMS ARE BETTER EQUIPPED TO HANDLE THE CHALLENGES OF A GLOBAL ECONOMY.

4

THE NUMBER OF DAYS IT TAKES TO SET UP A BUSINESS IN FRANCE (COMPARED WITH 6 IN THE UK, AND 14 IN GERMANY1).

Entrepreneur of the Year FOR THE FIRST TIME THE EY ENTREPRENEUR OF THE YEAR AWARD WAS GIVEN TO A FRENCH PERSON: MOhED ALTRAD.

La French Tech: KNOWN THE WORLD OVER. Number one European Delegation at the CES in Las Vegas (2014, 2015). Winner of the FAST EMEA for the 3rd year in a row.

A modernised labor market WAGES AND WORKING HOURS CAN NOW BE NEGOTIATED WITHIN COMPANIES removing economic roadblocks thanks to the Macron bill.

1. Source: World Bank. 13 #Checked

More stability

A STABLE TAX AND LEGAL ENVIRONMENT IN WHICH BUSINESSES CAN THRIVE.

X2 LONG TERM SHAREHOLDERS ARE REWARDED WITH DOUBLE VOTING RIGHTS.

€50 billion IN PUBLIC EXPENDITURE CUTS OVER 3 YEARS.

€47 billion IN INNOVATIVE PUBLIC INVESTMENT PROGRAMS OVER 5 YEARS (2.3% OF GDP).

9 solutions For France’s industrial renaissance.

#TheWayToGetThere 15 #Checked #TheWayToGetThere

We have what it takes Solid know-how Rolling up our sleeves 16 FRANCE’S INDUSTRIAL RENAISSANCE

We have what it takes

An ideal location France sits at the heart of an affluent economic market of 500 million consumers.

CNRS The world’s largest scientific institution in terms of publications (ahead of Harvard).

36 The number of French firms in Fortune’s 500 list – compared with 32 for Germany.

1 17 #TheWayToGetThere

2

1. International CDG Paris Airport welcomes 65 million people every year.

2. France is at the centre of Europe.

3. Here, a robotic plasma jet makes a composite repair.

3 18 FRANCE’S INDUSTRIAL RENAISSANCE

2

Solid know-how

Our “industry of the future” policy is the cornerstone of France’s industrial renewal. The goal is to encourage every industrial firm, regardless of its size, to move to the next stage of digitalisation. Each year, thousands of companies are offered hands-on solutions to building actual digital plants. We take a three-fold approach:

1. Production of a fighter jet in Argenteuil.

2. Alphasat.

3. High-speed vessel for civilian use.

4. Intelligent, hyper- connected, and responsive: we’re already turning the plant of the future into a reality.

1 19 #TheWayToGetThere

INDUSTRY + SERVICES = A WINNING PARTNERSHIP These two sectors are now inseparable. For example, thanks to digital-based services, in the near future, automobive firms won’t just sell cars, they will also offer mobility-based transport and travel solutions.

CUSTOMER-CENTRIC A successful industry is one that anticipates consumers’ needs – and exceeds them.

EYES ON THE PRIZE France’s industry has to become even more global.

3

4 20 FRANCE’S INDUSTRIAL RENAISSANCE

2

Rolling up our sleeves

WE’RE WELL UNDERWAY.

1 1. Clean-room inspection of a hemispherical resonator gyroscope using a stereoscopic microscope.

2. wooden construction near Paris.

3. Bridget, the Mars Rover prototype. 21 #TheWayToGetThere

ADVANCING TOGETHER In France, companies, entrepreneurs, central government, local authorities and trade unions all share a single goal: the revival of French industry.

INVESTING Return on investment is enhanced by up to 15% thanks to public subsidies.

ADAPTING €30 billion (1.5% of GDP) invested every year in skill-building for France’s workforce.

3

4

#9Solutions 23 #Checked #9Solutions

They are designed to thrive on France existing assets to meet the future’s global challenges.

New resources Smart cities Eco-mobility New generation transportation Medicine for the Future The data economy Internet of Things (IoT) Digital safety Healthy and customized food

25 #9Solutions

What is a “solution”?

REBUILDING OUR ECONOMIC CAPACITY BASED ON 5 PRINCIPLES:

MEETING FUTURE CHALLENGES We don’t know exactly what the future holds. But we do know that we will need new resources, new means to cope with urbanisation, eco-mobility, and so on.

BUILDING ON OUR STRENGTHS France needs to build on its comparative advantages. Within five years, we can be number one in Europe – if not the world – in each identified solution.

LARGE-SCALE PUBLIC INVESTMENT(€3.5 bn) To trigger at least 3 times more private investment .

SOLUTIONS FROM THE PRIVATE SECTOR Markets know best – each solution will be implemented by prominent, experienced French industrial entrepreneurs.

CONCRETE AND MEASURABLE GOALS Paired with milestones to achieve. This is not fiction; it is the start of France’s industrial renaissance. 26 FRANCE’S INDUSTRIAL RENAISSANCE 27 #9Solutions

New resources

The challenge Growing global consumption of resources is not sustainable. We need more efficient and more ecological means of production.

goals Double the use of plant-based commodities in France’s chemical industry by 2020. Create 20,000 jobs in France by 2020 through developing new materials recovery facilities (plastics, construction waste, carbon fibre, circuit boards, etc.).

37% EXPECTED GROWTH IN THE BIO-BASED PRODUCTS MARKET BETWEEN 2012 AND 2020.

2nd place FRANCE’S POSITION IN EUROPE IN TERMS OF BIOFUEL PRODUCTION AND SIZE OF ITS CHEMICAL SECTOR. 28 FRANCE’S INDUSTRIAL RENAISSANCE 29 #9Solutions

Smart cities

The challenge Explosive urban growth creates environmental challenges for cities: fighting global warming, controlling urbanization, reducing energy consumption and managing waste are all critical to the development of smart cities keen to reduce their environmental footprint.

goals 110,000 local, non-offshorable jobs by 2020: +75,000 jobs in energy retrofits for buildings, +16,000 jobs in water management, +9,000 jobs in wooden construction and +10,000 jobs in smart grids; High-value-added jobs to help France meet its export target of €100bn in revenue by 2020.

EVERY DAY, AN AREA THE SIZE OF PARIS (105KM²) IS URBANISED IN THE WORLD.

10 NUMBER OF FRENCH FIRMS WHICH ARE ALREADY GLOBAL LEADERS IN THIS SECTOR. 30 FRANCE’S INDUSTRIAL RENAISSANCE 31 #9Solutions

Eco- Mobility

The challenge To allow people to move around quickly, safely and inexpensively while having the smallest possible impact on the environment, our vehicles must become smarter, more connected and more autonomous.

goals 20,000 additional charging points by the end of 2016;

a 30% reduction in CO2 emissions for new vehicles produced in France by 2021.

2 FRENCH AUTOMOTIVE FIRMS IN THE GLOBAL TOP 3 IN TERMS OF REDUCTION of VEHICLES CO² EMISSIONS.

BLABLACAR A FRENCH “UNICORN” COMPANY, EUROPEAN LEADER IN THE FIELD OF CARSHARING. 32 FRANCE’S INDUSTRIAL RENAISSANCE 33 #9Solutions

Next Generation Transportation

The challenge France has traditionally held a strong position in transportation. However, to keep this lead in the face of growing competition from emerging industrial players, we need to reinvent transportation modes and propose innovative solutions that are both environmentally- friendly and economically competitive to meet growing demand from emerging countries.

goals Next-generation TGV (France’s high-speed train): 25% more capacity, 30% reduction in production costs, maintenance costs cut by 25%; Reducing the amount of fossil fuels burned by ships by 50% and cutting the total environmental impact of their lifecycle in half. 350,000 NUMBER OF PEOPLE IN FRANCE EMPLOYED BY THE AERONAUTICS INDUSTRY, GENERATING €40 BILLION IN TURNOVER ANNUALLY. 3rd place FRANCE IS HOME TO THE WORLD’S THIRD LARGEST RAIL INDUSTRY. 61… …AND COUNTING! THE NUMBER OF DRONE MANUFACTURERS. 34 FRANCE’S INDUSTRIAL RENAISSANCE 35 #9Solutions

Medicine for the future

The challenge In the near future, France will have to cope with many challenges in this field : an aging population, chronic illnesses and the need for innovative solutions to provide everyone with affordable, high-quality healthcare.

goals IPOS of France-based firms. Become the European leader in smart medical devices; Reverse France’s balance of trade in terms of medical technologies within a decade.

20% AVERAGE ANNUAL GROWTH WORLDWIDE THROUGH 2020 OF THE PHARMACEUTICALS & BIOTECHNOLOGIES MARKETS.

First place FRANCE IS EUROPE’S TOP BIOTECHNOLOGIES PRODUCER. 36 FRANCE’S INDUSTRIAL RENAISSANCE 37 #9Solutions

The data economy

The challenge The development of digital technologies and exponential growth in smartphones, tablets, computation capabilities and other connected devices generate huge quantities of data. This data constitutes a source of value for citizens and potential growth for companies.

Goals Boost the capacity of Atos/Bull to build a world-class supercomputer with a constant energy envelope; 137,000 people working in France in the field of Big data by 2020.

2nd place FRANCE’S POSITION IN THE FIELDS MEDAL RANKING – RIGHT BEHIND THE US: FRENCH MATHEMATICIANS ARE AMONG THE BEST IN THE WORLD.

CRITEO THE FLAGSHIP OF THE FRENCH DATA ECONOMY: $250 MILLION IPO ON NASDAQ (2013). 38 FRANCE’S INDUSTRIAL RENAISSANCE 39 #9Solutions

Internet of Things (IoT)

The challenge Robots and smart devices are set to revolutionise our daily lives, transforming the way we communicate, get around, eat and listen to music, for example.

Goals Replace 55% of cash payments by card payments and encourage 8 million people to adopt payment by smartphone, by 2020; Launch a nationwide contactless interoperable ticketing system in half of France’s cities that have populations greater than 200,000 by 2020.

80 billion THE EXPECTED NUMBER OF DEVICES CONNECTED TO THE INTERNET IN 2020. NAO ONE OF THE WORLD’S BEST-SELLING COMPANION ROBOTS, DESIGNED AND PRODUCED IN FRANCE. 2nd place FRANCE’S EUROPEAN RANKING IN TERMS OF TECHNICAL TEXTILE PRODUCTION. 40 FRANCE’S INDUSTRIAL RENAISSANCE 41 #9Solutions

Digital safety

The challenge The expansion of digital technologies is a powerful source of growth for the French economy. However, it requires a high level of security for both infrastructures and digital services. Hacking private data and online transactions, the risk of industrial espionage against French companies and cyber-attacks against national interests: threats like these must be anticipated and neutralised.

Goals Develop 5G with a targeted thousand-fold increase in the capacity of mobile networks by 2020; Launch France’s first all-electric satellites by 2020. 9% PERCENTAGE OF EUROPE’S ELECTRONIC COMPONENTS PRODUCED IN FRANCE. 13,000 NUMBER OF PURE PLAYERS IN EMBEDDED SYSTEMS LOCATED IN FRANCE. 40,000 NUMBER OF PEOPLE EMPLOYED IN CYBERSECURITY IN FRANCE. 42 FRANCE’S INDUSTRIAL RENAISSANCE 43 #9Solutions

Healthy and customized food

The challenge While the food industry has proved globally resilient to the crisis, it must now address major challenges: global demographics; food safety; volatile commodity prices; new consumer practices. The industry needs to improve yields, productivity and quality.

goals Become the European leader in functional food by 2020; Develop a world-class industry for proteins and ferments supply.

3rd LARGEST FOOD PRODUCER IN EUROPE. 585,000 PEOPLE EMPLOYED BY THE FOOD INDUSTRY IN FRANCE. €57.9 billion TOTAL VALUE OF FRENCH FOOD EXPORTS. 44 FRANCE’S INDUSTRIAL RENAISSANCE

ACKNOWLEDGEMENTS The ministry for the Economy, Industry and Digital Affairs would like to thank those companies that contributed to this document.

Alstom — Alphasat solar — ADP roissy — Group — Dassault — satellite d’ESA — A2V — PSA Safran — Mathis SA — Renault Nissan — EDF — Michael Green Architecture — PHYSIDIA — Teratec — DEVIALET SA Ministère agri — VALEO — MICHELIN — SCHNEIDER ELECTRIC — BOLLORÉ Sunpartner Technologies — GTT — Lumo — GreenCREATIVE EnerBee Qivivo — Thales Alenia — Space — Fédération professionnelle du drone civil — IFPEN — RTE— VEOLIA DELTA DORE — Nature&cie —QARNOT COMPUTING — Atos Store Electronic — Systems — PaxiTech-PAC systemes technologie —AlgoSource Technologies

All the products and technologies listed in the leaflet are made in France 45 CREDITS

Photo credits

cover 1 16 19 27 36 Dassault ADP roissy solar panels Teratec ©Dassault aviation Charles de Gaulle ©Daher Solar panels field on ©P. Stroppa CEA S. Randé ©JOUANNEAUX Automated tape a plateau in France The Research and Falcon 8x Jean-Marc 2014 laying machine in ©Mny-Jhee - Fotolia Technology Computing Daher’s Nantes plant Centre (CCRT) is one cover 2 17 28 of the entities of Airbus S.A.S. 2015 Map of France 20 Michael Green the CEA’s scientific ©Master films ©studio graphique safran Architecture computing complex. H Goussé ©Safran Daniel Linares Courtesy of Michael Based in Bruyères-le- 17 Control of a Green Architecture Châtel near Paris, in 2 Airbus Group hemispherical The Canadian, the premises of the La defense ©Wolfram Schroll resonator gyroscope Michael Green, plans CEA’s Supercomputing ©Antoni/Pixel & / studioSchrol using a stereo to build 30-floor Centre (TGCC), it is Creation - Fotolia Through the testing microscope in buildings using glue part of the Teratec La Défense business process of composite a cleanroom laminated timber technopole. district, Paris materials, Airbus Group Innovations 21 38 4 improves the Mathis SA 30 DEVIALET M. Macron bond strength of a ©photo Kamel Khalfi RENAULT-NISSAN ©DEVIALET héliport Bercy composite repair using Offices of the ©Renault sas Phantom is a cutting ©Agnès Dherbeys a robotic plasma jet. French Technological KANGOO Z.E. edge self-contained Emmanuel Macron, Institute for Forestry, audio system, the Minister for the 18 Cellulose, Timber Implosive Sound Economy, Industry Dassault and Wood Furniture 32 Center. Throughout and Digital Affairs at ©Dassault Aviation - (FCBA) at Champs Alstom your home, it offers his Ministry’s heliport S. Randé sur Marne near Paris ©Alstom Transport power, clarity, and Production of / Design & Styling preciseness unlike 8 a , 21 Alstom - Coradia anything you have Alstom in Argenteuil Airbus Group Liner V200. ever heard before. ©Alstom / Cyril Abad. ©Mars Rover Bridget Installation of the 1MW Airbus group Mars 34 40 tidal stream turbine at 19 rover Bridget PHYSIDIA SAFRAN the European Marine satellite d’ESA ©PHILIPPE LECŒUR ©Safran Daniel Linares Energy Centre (EMEC) ©ESA 22 Physidia S3 medical Measuring of the in Orkney, Scotland. Alphasat artist Renault Nissan device, the first luminous intensity impression ©MEUNIER, Denis home haemodialysis of the laser 10 Renault Nissan, machine Alphasat solar 19 reversing camera, 42 ©cnes/grimault A2V Aubevoye, France Ministry of emmanuel ©Christophe Brechi Agriculture, Alphasat solar arrays High speed vessel 24 Agrifood and installed at Astrium, for civilian use Dassault Forestry ready for shipment ©Dassault Aviation ©Xavier Remongin/ to the launch - S. Randé MIN.agri.fr location at Kourou, Dassault, Falcon 5X, Martinique – Preville French Guiana. part of the front greenhouses section of the fuselage (Macouba), hydroponic 14 at Dassault Aviation lettuce production Food-processing in Argenteuil industry ©Fotolia

47 #9Solutions

#FranceIsBack

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Graphic design: SIRCOM graphic design department SIRCOM graphic - 2015 design: Graphic