27/06/14 - Encouraging private-sector innovation, making public research institutions more accountable and channelling more funds into the most promising R&D projects would help restore France’s former prowess in science and technology, a new OECD report says.
The OECD’s Review of Innovation Policy: France recommends completing partly implemented structural changes to enable more excellence-based financing, better evaluation of public research and closer coordination between industry and the public sector. Universities should be given a greater role alongside the country’s powerful public research organisations. The Review finds that heavy taxation of businesses and investments is holding back private-sector R&D spending. It suggests that easing overall corporate taxes and introducing more modest R&D tax credits would be a better way to drive innovation than the current system of over-generous but unevenly distributed tax credits. Public sector research funds could also be spent more effectively. |
![]() 27/06/2014 - Arnaud Montebourg, Minister for the Economy, Economic Regeneration and the Digital Economy, for the launch of the report |
The OECD’s Review of Innovation Policy: France recommends completing partly implemented structural changes to enable more excellence-based financing, better evaluation of public research and closer coordination between industry and the public sector. Universities should be given a greater role alongside the country’s powerful public research organisations.
The Review finds that heavy taxation of businesses and investments is holding back private-sector R&D spending. It suggests that easing overall corporate taxes and introducing more modest R&D tax credits would be a better way to drive innovation than the current system of over-generous but unevenly distributed tax credits. Public sector research funds could also be spent more effectively.
“There is much that France can do to better support private-sector innovation and improve how public funding is allocated. This would go a long way towards restoring French competitiveness,” said OECD Secretary-General Angel Gurría, presenting the report. “For that, it is essential to implement the needed reforms of research and innovation policy to completion.” (Read the full speech in French)
In line with the recommendation of the report to strengthen the cost-effectiveness of innovation policies, the French government established today the National Commission for the Evaluation of Innovation Policies (Commission nationale d’évaluation des politiques d’innovation). This is a welcome step in the direction of improving coordination and accountability in France’s national innovation system.
Percentage of spending on higher education R&D that is financed by industry
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Key points in the Review include:
For further information, or to speak to the author of the Review, please contact Catherine Bremer in the OECD Media Office (catherine.bremer@oecd.org, +33 1 45 24 80 97).
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