France in the European Union

This issue of the "Insee Références" collection results from the collaboration of several actors of official statistics. It includes the main economic and social data, harmonised by Eurostat, making it possible to situate France in relation to its European partners. More information is available only in French on the French pages of the website.

Insee Références
Paru le :Paru le16/04/2019
Thomas Balcone, Camille Schweitzer
La France dans l'Union européenne- April 2019
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Research and Development by French Businesses Within the European Union: Sectoral Aspects and Public Finance

Thomas Balcone, Camille Schweitzer

Research and development (R&D) is currently a major challenge for a country’s growth. Since 2000 with the “Lisbon Strategy” and then in 2010 with the “Europe 2020” Strategy, the European Union (EU) has set an objective of devoting at least 3% of its GDP to R&D activities in order to remain competitive with countries such as the United States of America, which dedicates 2.7% to research in 2015 (2.0% for the EU). Around two thirds of all R&D is carried out by businesses, meaning that private research has a significant weighting within the national research effort. However, businesses are not the same from one country to another and certain business sectors are more favourable for conducting R&D than others. Therefore, the sectoral structure of a country’s economy has an impact on its overall research efforts. Thus, if France had the same economic structure as Germany with a greater industrial presence, while maintaining its sectoral levels of research dedication, the research effort by businesses would total 2.7% in that scenario, in comparison with the current level of 1.4%.

Furthermore, in addition to the R&D activities that it performs directly, the public sector also has an impact on R&D by businesses through public policies and the funding for such private research. France is the EU country with the highest level of expenditure (as a share of GDP) on public aid for R&D by businesses. However, these policies to support R&D are insufficient, on their own, to guarantee a high level of effort in research.

Insee Références

Paru le :16/04/2019