Its missions and operation have now been defined.
A look back at the government's flagship measure
It is a strategic body that guides government action and decision-making.
The aim of this government body is to fulfill the government's promise to make innovation a priority.
Created as part of the PACTE law, the first meeting was held on July 18, 2018, during which Minister Bruno Le Maire detailed his action plan for start-ups.
The Innovation Council includes several members of the French government, as well as representatives from BPI France (Banque Publique d'Investissements) and the French National Research Agency (ANR). Six personalities with long-standing experience in research, industry, entrepreneurship and innovation capital will attend each meeting to contribute their point of view.
Its missions are as follows:
- Guide and set the direction of government innovation policies
- Finalize the measures to be taken
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Simplify aid and support schemes for innovative start-ups
- Formulate new recommendations to continuously improve the current system
One of the major challenges raised at the launch was to encourage the emergence of new markets by reducing technological barriers.
Giving start-ups better access to financing, so that they can build up substantial technological capital, is one of the government's top priorities.
At the same time, companies must not lose sight of societal concerns, which aim to provide answers to the main issues facing French citizens (health, safety, environment, etc.). In the long term, the creation of new markets and significant job creation are expected.
We need to "restore coherence to the maze of aid for innovation in which no one can find their way around" Bruno Le Maire, July 18.
The Innovation Council's funding body is the Innovation and Industry Fund (FII).
It has a capital base of 10 billion euros.
With an estimated yield of 2.50%, it will distribute 250 million euros each year as follows:
- 150 million euros dedicated toartificial intelligence
- 70 million for disruptive innovation, led by BPI France ("deep tech"), including 40 million in the form of loans for innovative companies
- 25 million euros dedicated to nanotechnology growth
- 5 million euros to be allocated to other projects at the suggestion of Board members. In particular, they could be used to help certain companies catch up in this area.
Part of the funding will also be used to certify existing artificial intelligence-based systems and make them more reliable.
Another objective is to facilitate technology transfer from laboratories to industry. To this end, the number of bridges between the public and private sectors should be increased to boost the professional mobility of researchers.
Taking all these measures together, the French government will have to invest 4.5 billion euros over the five-year period. The funds will come from the sale of equity stakes in a number of companies, including Française des Jeux, Engie, Aéroports de Paris and Renault.
Beneficiary companies will mainly be start-ups in the seed phase.
The primary objective is to support research and development in disruptive innovation projects.
The French government wants to give priority to artificial intelligence, and in particular to projects aimed at the healthcare sector. According to Bruno Le Maire, improving medical diagnostics is high on the list.
VSE-SMEs and larger companies can also benefit from support, depending on the relevance of their projects.
At the same time, all existing state aid for innovation should be maintained over the next few years.
The creation and launch of the Innovation Council thus marks a new stage in Emmanuel Macron's long-standing commitment to supporting start-ups, when he was still only a presidential candidate.
New, highly disruptive technologies are rapidly transforming the realities of the job market. The government is committed to providing concrete answers to these challenges.
Written by our expert Paul LASBARRERES-CANDAU
October 29, 2018
