FRANCE S DIGITAL SUPERHIGHWAY THE DIGITAL ECONOMY IN FRANCE: A DYNAMIC AND BUOYANT SECTOR

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1 FRANCE S DIGITAL SUPERHIGHWAY THE DIGITAL ECONOMY IN FRANCE: A DYNAMIC AND BUOYANT SECTOR

2 FRANCE: AN ICT HUB France is a Start-up Republic, home to vibrant tech hubs and talent imbued with a strong entrepreneurial culture. In 2013, companies in France producing goods and services in the ICT sector (information technology, internet services and electronic communications) generated revenues of more than 95 billion. With 61 foreign investment decisions in 2013, software and IT services was the leading sector for job-creating foreign investment in France. (IFA, 2013 Report) The internet broadband penetration rate in France is 37.6% higher than in other major European countries such as the United Kingdom (35.2%), Germany (34.8%), Spain (26.3%) and Italy (22.3%). (OECD, December 2013) Mobile internet penetration rates in France are also high, with 73.9 million cellphone subscribers (113% penetration rate), of which 36.5 million are 3G subscriptions. (ARCEP, 2014) With e-commerce turnover totaling 51 billion in 2013, France was among the six leading countries in the world for online sales in (French e-commerce and remote sales federation Fevad, 2014) 1 st With 86 of the top 500 fastest growth technology companies based on percentage revenue growth in Europe, the Middle East and Africa, France was once again ranked first in 2014 by the Deloitte Technology Fast 500 EMEA. There are seven French companies or institutions among the 100 most innovative organizations in the world. France is ranked first in Europe. (Thomson Reuters 2014 Top 100 Global Innovators) SOME OF THE COMPANIES MOST INVOLVED IN DEVELOPING FRANCE S DIGITAL ECONOMY ARE: ORANGE, one of the leading telecoms operators in the world. CRITEO, a global leader in performance display advertising. OVH, the second largest web hosting company in Europe. GEMALTO, world leader in digital security. 2 nd France is ranked second in Europe and sixth in the world for the number of international patents filed. (WIPO, 2013) FRANCE S DIGITAL SUPERHIGHWAY

3 DYNAMIC DIGITAL INFRASTRUCTURE France s excellent digital infrastructure is already in place: its telecommunications networks are recognized to be among the best in the world in terms of quality, availability, efficiency and competitiveness. The power supply in France is also one of the most reliable and efficient in Europe, offering high-quality power at very competitive rates. 3G mobile coverage as of July 2014: SFR and Orange cover approximately 99% of the population, Free Mobile 98.5% and Bouygues Telecom 96.5%. (ARCEP, June 2014) France is ranked second in Europe for the number of 4G subscribers. (ARCEP, July 2014) Total investments in 3G and 4G high-speed mobile in 2013 were estimated to be around 1.7 billion. (ARCEP, June 2014) France is the second largest producer of video games by sales volumes after the United States, particularly in sectors boasting strong growth, such as video games on social networks and smartphones. Several of the world s largest publishers are French, including Vivendi, Ubisoft and Gameloft. (French Agency for Video Games (AFJV), April 2014) 1 st France has more public WiFi hotspots over 13 million than any other country in the world. (Ipass report, 2014) France is ranked 1 st in Europe and 4 th in the world for e-government. (E-government survey, UN, 2014) In 2016, Paris will be home to the world s biggest tech incubator (1,000 start-ups in Halle Freyssinet), under the leadership of the French serial technology entrepreneur Xavier Niel. SELECTED INNOVATION CLUSTERS IN FRANCE In France, the digital economy is supported by a dynamic network of innovation clusters partnering public- and private-sector research centers, universities and industry: CAP DIGITAL focuses on the creation of digital content and its multimedia distribution and exchange. Lannion IMAGES ET RESEAUX CAP DIGITAL Paris SYSTEMATIC IMAGES ET RESEAUX (Images and Networks) specializes in communications networks and new digital imaging technologies. MINALOGIC fosters innovation in the development and production of intelligent miniaturized products and services for industry (micro/ nanotechnology and embedded software intelligence). Grenoble MINALOGIC Sophia Antipolis- Rousset SECURE COMMUNICATION SOLUTIONS SCS (Secure Communication Solutions) specializes in the design and development of secure processing and communications solutions integrating devices, software, networks and systems. en.pole-scs.org/ SYSTEMATIC specializes in complex systems and generic software, electronic and opto-electronic technologies.

4 EFFECTIVE AND CUSTOMIZED SUPPORT FOR THE SUCCESS OF YOUR INVESTMENT France s research tax credit is the best in Europe, covering 30% of all R&D costs up to 100 million, and 5% above this threshold. Since 2013, eligibility has been extended to innovation expenditure by SMEs, and to innovative new companies (JEIs), which can combine the research tax credit with the other corporate/local tax and social security contribution relief to which they are entitled over an eight-year period. Very-High-Speed France Plan 20 billion being invested to roll out very-high-speed internet by % nationwide coverage by Priority given to business parks for the roll-out of fiberoptic connections. A key public-private initiative: La French Tech ( com), aiming to strengthen digital economy ecosystems and raise the profile of digital start-ups in France, while also introducing incentives to invest in entrepreneurial ventures. Foreign entrepreneurs and startups will be eligible in 2015 for 30,000 of funding through the French Tech Ticket scheme. 3 rd In the digital sector, France has the third lowest effective corporate tax rate. (18.5% - Source: KPMG, Competitive Alternatives, 2014) Administrative procedures for businesses are being simplified thanks to a digital first-strategy: France is among the simplest countries in the G20 in which to found a company: only five administrative procedures and seven days are required, compared with a G20 average of 7.6 procedures and 22 days. (EY, European Attractiveness Survey, 2014)

5 THEY CHOSE FRANCE APPNEXUS (United States) AppNexus is very excited to be here in France and not just because of the food. We think that it s a fantastic economic opportunity and we are excited to be here and invest heavily in this country. We expect to really grow here over the next couple of years. STEVE FITZ, Senior Vice-President, Worldwide Field Operations DORO (Sweden) We chose to locate our software development center in France because we were looking for certain skills and highly trained personnel. [ ] France is a very large, interesting market, and its strategic location enables us to centralize all our European operations here. JÉRÔME ARNAUD, CEO WIPRO Ltd (India) Setting up operations in France was a logical step forward for Wipro s growth plan in Europe. [ ] France has definitely become an open and friendly market for global companies who want to explore business opportunities. BAS KLEIN DOUWEL, Country Head, France TCL (China) Firstly, France is at the heart of the European Union, so being here puts us in a strategic position to serve the European market. Secondly, France s energy and transport infrastructure is highly developed, and thirdly, its legal structures are transparent and strong. [ ] French employees are very energetic. They are very adaptable and have a strong ability to innovate. LI DONGSHENG, Chairman and CEO FREESTYLE INTERACTIVE (United Kingdom) [Another reason for coming to France] was to extend our portfolio: increasingly, we are dealing with global clients who work across all international boundaries and so it makes sense for us to try to work with more broader digital European and global companies. ALAN COOPER, CEO TOSHIBA (Japan) France is a good place for R&D, not only for proprietary R&D but especially and this is now one of Toshiba s priorities for R&D through alliances with other local companies to develop an R&D ecosystem in France. PHILIPPE DELAHAYE, CEO France GOOGLE (United States) We re obviously delighted to be in France and to work with French engineers who have an excellent reputation around the world. ELISABETH BARGES, Public Policy Manager FOREIGN ACQUISITIONS OF HIGH-FLYING FRENCH FIRMS: - Neolane by American company Adobe in 2013 (US$600 million). - Arkadin by Japanese company NTT in 2013 (US$450 million). FRANCE S DIGITAL SUPERHIGHWAY

6 FOR FURTHER INFORMATION, PLEASE VISIT: Design and production: December 2014