Printer Friendly
Email a Friend
Capacity for Change in France Benefits Aerospace Companies
01 Feb 2006
France undeniably possesses Europe's broadest aerospace capability, from design and development to fabrication and final assembly. This capability, combined with geographic advantages and financial incentives, has helped drive France's aerospace revenue to $28.5bn in 2005, a figure that is expected to rise over the next three years. Olivier Poncet, Aerospace Director at the Invest in France Agency outlines some of the benefits enjoyed by aerospace companies in France.
For many years Airbus has been the main attraction of France's aerospace industry, supporting a vast number of small and medium enterprises (SMEs) in and around Toulouse. In 2005, following a Government initiative to combine and improve industrial expertise, the Midi-Pyrenees and Aquitaine regions officially became France's 'Aerospace Valley'. The French Government is supporting this project with additional funding to improve skills and infrastructure, as well as offering incentives to companies that set-up in the region.
Through the combined resources of all parties - corporations, small businesses, public & private research centres, universities, engineering schools and local authorities - a tremendous cooperative force has emerged in the region to ensure that France remains competitive.
French aerospace companies today invest a greater percentage of their revenue in research and development (±15%) compared with their counterparts in the United States (±12.5%) or the United Kingdom (±10%). Companies that invest in research and development or create jobs in France are eligible for a number of attractive financial incentives, the largest being the R&D tax credit and the Prime d'Amenagement du Territoire (PAT), a 50m fund available for companies creating jobs.
In 2004 the existing R&D tax credit was extended, so that it now includes companies that conduct research even if their spending has not increased. The plan for 2006 proposes further improvements, which increase the ceiling on the research tax credit from 6m to 10m for an individual company.
Another aspect of the work culture that has become a matter of national pride is France's productivity.
France has the most productive workers of any major economy in the world behind Canada, around 20% more efficient than the UK in terms of hourly productivity according to the OECD. France has long enjoyed a reputation for technical and scientific education and training; aerospace is no exception, representing a branch of the French higher education system in its own right. Four engineering schools - known as the "big four" (ENSAE, ENSICA, ENAC and ENSMA) train graduates specifically for the aerospace sector.
www.investinfrance.org/UK
Images for this article - click to enlarge
Unless otherwise stated, all images copyright © Mercator Media 2008. This does not exclude the owner's assertion of copyright over the material.
