What are the sectors in which France and French companies are world leaders?
Anne-Marie Idrac: France is very well known for having centers of excellence, and there are many sectors in which French companies have established a competitive advantage through their advanced technology, business systems and marketing skills. These would include, in my opinion, aerospace, pharmaceuticals, agribusiness and value-added food production, and of course what France remains well known for throughout the world, its luxury goods sector.
But it is also important to remember that France has a highly diversified economy, combining strengths in both industry and services. Moreover, we are totally committed to develop new sectors in response to the fast-changing demands of today’s world. Among the priority sectors are those relating to the ‘green economy’, and developing the technologies and business systems needed to address the challenges of climate change. We are also continuing to build on our skills-base in IT and improve our centers of excellence in both biotechnology and nanotechnology based around sector-specific innovation clusters which act like magnets for best practice and greater competitiveness…
In terms of further strengthening France’s attractiveness to foreign investors, what do you see as the main ways forward?
Anne-Marie Idrac: Firstly, I am happy to see that recent reports on international investment, such as the Ernst & Young European Attractiveness Survey, confirm that France remains in a very, very good position. But we have decided to take a more proactive approach in communicating this message. Accordingly, the Invest in France Agency (IFA) is developing a communications strategy, particularly in the world’s fast-growing economies and centers of capital accumulation like China, India, Russia, Brazil and the Middle East. We have asked the IFA to establish dedicated offices in these countries, with mission-specific personnel to carry out this task.
Yet perhaps our best ambassadors to spread this message abroad are business people who have already invested in France. Previously, these were mainly investors from the United States, the United Kingdom and Germany, though now they also include Indian, Chinese and Japanese companies. I am happy to report that practically all of them, especially in recent years, say that their experience in France has been positive, and that they want to develop their businesses here. Their testimonials are the best way of convincing future investors that France is on the move, that our reforms are working, and that we remain fully committed to R&D and innovation.
Within an increasingly challenging global environment, where enhancing France’s attractiveness to international investors may require a more proactive approach, what concrete measures are to be taken in 2010 to project France to the forefront of economic decision-makers’ minds?
Anne-Marie Idrac: We will continue to stress the competitiveness of French companies, which is also part of our attractiveness as an investment destination. But we have also introduced important reforms to the local taxation system which have brought local taxes in France down to the same level as in Germany or in Belgium. This move comes on top of the introduction of France’s Research Tax Credit, which is judged to be the best in the world and is attracting many investors to France. We also have a new regulatory framework for the ‘green market’ designed to enhance the sector’s attractiveness. In terms of raising France’s profile among foreign investors, I am going to Singapore where the IFA is actively deploying new resources, and then to Turkey with France’s Finance Minister Christine Lagarde.
Do you see France today as being more attractive to investors than before?
Anne-Marie Idrac: The country already boasts very high standards of infrastructure in terms of transport networks, energy and education. These are specific to France. Then again, there is President Sarkozy’s commitment to push towards a more dynamic economy, as can be seen in the many reforms introduced by this government to the labor market and in streamlining regulations. All these measures are moves towards making France a more open-market country that is welcoming to investment, thereby complementing its role as one of the world’s leading investors abroad, a country where the quality of life is matched by the quality of business practices.
Is there a ‘recipe’ for building on France’s success?
Anne-Marie Idrac: A key ingredient is not changing our minds every day. We must maintain our capacity to adapt to a changing world, especially the ‘green economy’, more R&D and innovation. We must press on with reforms, some of which, such as labor market and pension reforms, raise some difficult issues. We must have a good labor market and sustainable growth based upon solid public finances. That is the recipe for building confidence, and confidence is the key to investment.
