Enterprises in France2014 Edition

This new edition of the Enterprises in France issue from the “Insee Références” collection offers a comprehensive structural view of our productive system.

Insee Références
Paru le : 07/11/2014
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R&D subsidies for small enterprises

Vincent Dortet-Bernadet, Michaël Sicsic

Between 2003 and 2010, amounts of State subsidies used to fund research and development (R&D) in enterprises increased by more than 150% and even 300% for small and medium-sized enterprises (SMEs). For the latter, these amounted in 2010 to almost 2 billion euros of which 26%, i.e. nearly 500 million euros, were received by very small companies (microenterprises). This sharp increase was due in particular to tax credit reforms for research and implementation of a scheme for young innovative enterprises. For microenterprises, this increase was accompanied by sectoral changes: the allocation of subsidies for industry was reduced while that for scientific and technical activities was increased. A small number of microenterprises received a significant proportion of the aid: in 2010, 10% of subsidised microenterprises received 45% of funds. While the average size of microenterprises receiving a R&D subsidy for the first time decreased slightly, the average amount of subsidies received by these companies increased. For microenterprises, the proportion of jobs assigned to R&D and funded through subsidies was multiplied by 3.5, rising from 14% in 2003 to 49% in 2010. This increase corresponded to 5,900 jobs funded in 2010 compared to 1,800 in 2003. According to an econometric analysis conducted on a panel of small enterprises from the most intensive R&D sectors, R&D subsidies have created jobs in small enterprises: employment allocated to R&D is increasing in these enterprises. However, from 2008, this impact was less than the rise in amounts of received subsidies: aid had served to create jobs for research and also partly to fund existing jobs.

Insee Références
Paru le : 07/11/2014