France Invests in Startups and Innovation to Invigorate Economy

As other governments struggle to deal with rapid advancements in technology, the gig economy and tepid economic growth, France is looking forward and betting big on startups to drive its future.

On a recent trip, I saw firsthand how France is investing in tech.

France’s national effort to invest in technology and startups is called "La French Tech" and is symbolized by an eager red rooster. The effort received major attention in 2015 and again in 2016 when Emmanuel Macron, France’s former minister of economy, industry and digital affairs, led delegations to CES? — the global stage for innovation, held each January in Las Vegas. For the past two years, more than 140 French startups have exhibited at CES — more than any other country outside of the U.S.

Although Macron left government and is exploring a bid for president, the French tech innovation leadership continues. In late October, the Consumer Technology Association (CTA)TM, which produces CES, announced in Paris that an independent panel of judges awarded 47 French technology products as CES Innovation Awards honorees — more than 10 percent of all innovation awards we will give out at CES 2017.

France’s commitment to innovation is palpable. The country is home to more startups than any other country in Europe, according to 28-year-old Robin Rivaton, author of the book La France Est Prête (“France is Ready”), and CEO of Paris Region Enterprises, a government-supported effort to promote entrepreneurs and investment in the Paris region.

And French interest in entrepreneurship continues to increase: 68 percent of French youth want to run their own business. You can see this trend playing out across France.

In Angers, a charming city 200 miles west of Paris known for Cointreau liqueur, a public-private partnership created an accelerator with millions of dollars invested in tooling for rapid prototyping of Internet of Things (IoT) products.

From colorful electronic dresses to beautiful badges changing images controlled by your smartphone, novel ideas are becoming marketable realities. Christophe Béchu, the region’s popular and debonair mayor, is so focused on the effort, he personally hosts tours and has previously attended CES. He also has submitted a proposal to host the prestigious World Electronics Forum (WEF) in Angers in 2017.

Lyon has mobilized its business and financial community to attract investment and entrepreneurs. Banks are investing in, and loaning money to, digital entrepreneurs. Laurent Wauquiez, the region’s populist president, has focused the tech world on Lyon as the business gateway for buyers and partners in both the Arab and African regions.

Paris is surging with innovation, research and startups. Next April, Station F (Halle Freyssinet) will open. Beautifully designed for serendipitous collaboration, networking and creativity, it can house 1,000 startups and also offers nearby housing for its entrepreneurs.

Paris offers history, culture and five-sense experiences. And its multitude of top-tier universities produce programming and engineering talent at a fraction of the Silicon Valley cost. Valérie Pécresse, the regional president of Paris, who held several national ministerial and legislative positions, now fully dedicates her time to advocating for innovation in the Paris region. She also extends Paris’ reach with offices in Shanghai and Silicon Valley.

The national government is on board. At our meetings in Paris, Adrienne Brotons, the president’s economic- and financial-affairs advisor, discussed French business opportunities in the new economy, the impact Brexit will have on the broader EU economy, and France’s focus on digital investment.

She said entrepreneurs from other countries are attracted to France not only because of its culture, but also because of the investment government is willing to make in promising startups.

Maud Bailly, the prime minister’s chief of economics, finances, business and digital, who had managed the French high-speed rail, signaled support for sharing-economy services in France, although she insists they be taxed for government revenue and regulated for safety and privacy.

Sharing-economy services have thrived in France. The country is Airbnb’s second-largest market in the world and Uber’s second-largest market in Europe. I had excellent experiences using several of Uber’s services to get around on my recent trip, but unfortunately, Uber’s low-cost ridesharing service, UberPOP, remains illegal in France.

At CES 2017, Jan. 5-8 in Las Vegas, more than 200 exhibitors will hail from France, including Blue Frog Robotics, Engie, Holi, and Humetrix and a French yachtsman, Alain Thébault, who will showcase his prototype for a flying water taxi. The French delegation is expected to be over 2,000 strong and include Minister of Digital Affairs Axelle Lemaire, Chairman Sébastien Soriano of the French communications agency Autorité de Régulation des Communications èlectroniques et des Postes and several other regional presidents, legislators and mayors.

France has changed.Instead of insisting workers not read work-related emails off the clock, it is shifting to a culture reflecting the French word entreprendre. And if French regulators can resist acting strongly and hastily as bureaucrates, France will not only prosper, it will lead as an innovation-driven economy.