France's Strategic Council for Innovation backs French government measures to support research and innovation
New status for young innovative corporations creates one of world's most comprehensively favorable fiscal and social environments for innovation.
Paris, December 10, 2002 - The French government's decision, expected tomorrow morning, to give young innovative companies major, long-lasting relief from tax and other government-levied charges will have a significant effect on the environment for innovation in France, according to France's Strategic Council for Innovation (SCI). The SCI's goal is to boost French efforts in the field of research and high technologies and includes figures from France's science, industry and financial communities. The new status for young innovative enterprises is directly based on work done and recommendations made by the SCI and its founders. Known as JEI (Jeunes Entreprises Innovantes), the qualifying companies will enjoy a wide-ranging set of benefits.

Details of the new legislation on innovation include measures giving total exemption to investors and other shareholders from capital gains tax, drastically cutting social costs paid by companies to the state and granting 100 percent relief on corporate income tax.

"These measures mark a cultural revolution in France and constitute a major step towards making France one of the most attractive countries in the world for entrepreneurs, investors, and scientists," said Dr Philippe Pouletty president of the SCI. "This gives us confidence that France will become a top choice country for entrepreneurs and investors."

The SCI would welcome the adoption of similar schemes by other European countries. Europe invests about 40 percent of what the US spends on research and new technologies. As innovation generates around 50 percent of economic growth, significant moves to improve the environment will bring economic and social benefits to Europe.

The new measures overcome a major obstacle to the creation and growth of emerging technology companies in France, according to the SCI: the high level of French taxes which severely reduce the ability of research-driven companies to grow.

This new status was proposed in early 2002 by Dr Pouletty, president of the SCI, to France's president, Jacques Chirac, and prime minister, Jean-Pierre Raffarin. It was supported by France Biotech, the association that promotes the development of the French biotech sector, and by the entrepreneurs' club, Objectif 2010.

The SCI advocates additional legislative changes. Other measures that should be taken include:

* Reform of academic research by increasing budgets (two-fold every five years), by increasing mobility of researchers across Europe and by increasing Franco-European networking. This will promote basic research, innovation and more effective technology transfer from academia to industry.
* The adoption of new legislation on private foundations that will ensure better financing for research, especially medical research.
* Creation of a pan-European patent.
* Major increases in government seed-financing and subsidies for start-up companies.
* Extension of the JEI status across Europe.

About the Strategic Council for Innovation:
Key figures from France's science, industry and financial community have formed the Strategic Council for Innovation. The Council's goal is to boost French efforts in the field of research and high technologies. Founding members of the Council include prominent French entrepreneurs, French as well as European investors, ex-government ministers, directors of major research institutes, economists and lawyers.

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