French companies can benefit from a 30% tax credit up to € 100 million and 5% of any figure above that. This is the most generous in Europe. It is no surprise that, today, more than 30% of domestic business expenditure on R&D comes from foreign companies. Despite the financial crisis, incoming R&D investment continues to strengthen in France, with 58 new projects being announced in 2012. This accounted for 8% of all projects in France during that year.
France’s innovative culture is also a major attraction for foreign investors with a ratio of roughly 8 researchers per 1000 members of the labour force, ahead of Germany and the UK. There has also been a considerable increase in the number of researchers working in the private sector. France is home to a number of competitive clusters which are comprised of both established and start-up technological and research driven companies and plays a major role in the increasingly internationalized nature of R&D.