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On Tuesday 3 March 2015, KPMG published 2015 Global Cities Investment Monitor. Between the end of September 2013 and the end of September 2014, Paris ranked third among the world's cities as a site for international investment. Ranked 7th in the world in 2013, Paris climbed 4 places in 2014 to reach 3rd place in terms of investments in strategic facilities such as R&D centres, the setting up of corporate headquarters, marketing departments and design centres.

Paris has also been named the number one city in Europe for the vitality of its innovation market, in a report by CB Insights entitled “The next Silicon Valley” (14 December 2014).

Paris, a hub of innovation

Spanning an area of just 106 sq. km, the Parisian ecosystem boasts an unprecedented concentration of economic players, including start-ups, large companies, service providers, media companies and institutions.
The city benefits from world-class infrastructure and can rely on strong political support and tax incentives for innovative companies.

  • Paris has 130,000 sqm of incubator space and will alocate 100,000 more sqm by 2021.
  • There are 10,000 start-ups in Paris Region.
  • Paris ahead of Berlin, Frankfurt, Tokyo, London and Boston for R&D implementation (Cost Simulation by KPMG, Competitive Alternatives 2014, based on labor costs, facility costs, transportation costs, taxes, financing costs and utility costs)


Paris, a giant incubator

World-class clusters

Competitiveness clusters, key components of France's industrial policy, prompt the emergence of networks of excellence connecting public and private research, training and teaching institutions and small, medium-sized and big companies.
The goal of these clusters and their programmes is to foster the rise of collaborative projects and to support pathbreaking companies and researchers.
The City of Paris finances most of these structures along with the State and the Paris Region:

This competitive hub is positioned as a hub for sustainable cities and urban ecotechnologies. It is structured around three interdependent themes: instrumentation, city engineering and management, environmental efficiency, “city quality” and service quality.
This aerospace competitive hub, France’s leading employment basin in the field of aeronautics, space and on-board systems, aims to consolidate its position as a European leader in the space transport, business aviation and propulsion / equipment. ASTech members include a core group of SMEs as well as larger players (EADS Astrium, Dassault Aviation, Safran, SNPE, etc.) and aerospace research institutions such as Onera, CNRS, CNES, etc.
This hub brings together 600 businesses of all sizes, research laboratories and training organisations, all involved in developing digital content and services. The core markets for this hub are video gaming, knowledge engineering and education, the picture business, 3D and special effects, communication objects and digital design.
Created to build industrial and research projects with high added value and job creation potential, this hub brings issuers, investors, middlemen, bankers, international financiers, universities and financial research centres together on the Parisian financial marketplace.
This hub has three goals: achieving worldwide excellence in teaching and research, creating synergy between players to attract industry, and financing innovative life science businesses.
Deployed in three regions including Paris-Île-de-France, this hub is geared towards individual and public transport, and is organised around four strategic areas of activity: energy and environment, mobility and services, road safety and mechatronics development.
This hub is at the cutting edge of complex systems, especially in transport, telecommunications, security and health. Systematic is at once a “technological innovation factory”, through its R&D projects, and an innovation hub that unites over 650 innovative SMEs in the sectors of engineering, technical studies, software and active electronic component manufacturing.
Silicon Sentier, a regional association of around 100 technology businesses in Paris and Paris Region (Web, Open source and Mobility), offers innovative new companies a visibility and exchange platform fostering experimentation and "cross-fertilisation" of projects.
Capital Games federates 60 independant video game companies from the Paris Region.

A beneficial legal and fiscal environment

The research tax credit , Crédit d’Impôt Recherche (CIR)

The research tax credit (CIR) is a fiscal incentive that contributes to an R&D environment in France regarded as the most attractive in Europe. It helps boost corporate competitiveness by backing their research and development efforts:

  • Tax breaks: 30% of eligible annual innovation expenses, up to 100 million euros, and 5% beyond this threshold;
  • Base for eligible expenses: the CIR tax credit is calculated taking into account all R&D expenses (salaries, payroll taxes, certified out-sourced work, a lump sum of overhead costs, patents, amortisations, provisions for R&D dedicated expenses and technological intelligence and awareness);
  • Additional incentive measures: the gross cost of a Ph.D. in the framework of his or her first open-ended contract is included in the CIR tax credit for four times its rate.

The status of Young Innovative Company (JEI)

This status grants considerable advantages to young companies that undertake R&D expenses, for a maximum duration of eight years from the date upon which they were founded:

  • Exemptions from the employers’ payroll taxes and contributions, up to a certain limit, for those working in R&D activities
  • Tax relief subject to the de minimis rule (a €200,000 threshold over a sliding three-year period)
  • Total exemption on profits
  • Total exemption from the annual flat tax
  • Exemption from the property tax and/or regional business tax



Contact us

contact Béatrice GAUTIER - Paris&Co Béatrice

Open Innovation Project Manager

+33 (0)6 78 90 66 42
E-mail me