{"id":6575,"date":"2023-11-27T15:57:00","date_gmt":"2023-11-27T14:57:00","guid":{"rendered":"https:\/\/lecercledeseconomistes.fr\/articles\/%cat-post-theme%\/reviving-the-industry-through-innovation\/"},"modified":"2024-04-18T09:56:07","modified_gmt":"2024-04-18T07:56:07","slug":"reviving-the-industry-through-innovation","status":"publish","type":"blog","link":"https:\/\/lecercledeseconomistes.fr\/en\/articles\/industry-innovation\/reviving-the-industry-through-innovation\/","title":{"rendered":"Reviving the industry through innovation"},"content":{"rendered":"\n<div class=\"wp-block-group section-content-layout-without-cover is-layout-flow wp-block-group-is-layout-flow\">\n<div class=\"wp-block-columns is-not-stacked-on-mobile is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33.33%\">\n<div class=\"block--post-meta\" >\n\n    <ul class=\"block--post-meta-list\">\n\n        \n            <li>\n                <p class=\"style-p-secondary-bold\">date<\/p>\n                <time datetime=\"2023-11-27T15:57:00+01:00\"class=\"style-p-secondary-normal\">27 novembre 2023<\/time>\n            <\/li>\n\n            <li>\n                <p class=\"style-p-secondary-bold\">update<\/p>\n                <time datetime=\"2024-04-18T09:56:07+02:00\" class=\"style-p-secondary-normal\">18 avril 2024 \u00e0 09:56<\/time>\n            <\/li>\n\n            \n            <li>\n                <p class=\"style-p-secondary-bold\">author<\/p>\n\n                <div class=\"container__authors\">\n\n                    \n                        <a class=\"style-p-secondary-normal\" href=\"https:\/\/lecercledeseconomistes.fr\/en\/presentation\/members-and-authors\/authors\/nicolas-dufourcq\/\">Nicolas Dufourcq<\/a>\n                     \n                    \n                <\/div>\n            <\/li>\n            \n        \n            \n            \n            \n\n            \n                <li>\n                    <p class=\"style-p-secondary-bold\">reading time<\/p>\n                                        <p class=\"style-p-secondary-normal\">11 minutes<\/p> \n                <\/li>\n\n            \n\n        \n        \n    <\/ul>\n\n    \n        \n        <div class=\"container-post-social-share\">\n\n            \n<div class=\"block--post-social-share\" >\n\n    \n    <ul class=\"container-socials\">\n\n        <li>\n            <a href=\"https:\/\/www.facebook.com\/sharer\/sharer.php?u=https%3A%2F%2Flecercledeseconomistes.fr%2Fen%2Farticles%2Findustry-innovation%2Freviving-the-industry-through-innovation%2F\" title='Partager sur Facebook' target='_blank'>\n                \n                <svg class=\"facebook\" width=\"27\" height=\"26\" viewBox=\"0 0 27 26\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n<path class=\"one\" d=\"M25.6539 0.587891H0.814941V25.4269H25.6539V0.587891Z\" stroke=\"#5B5B5B\" stroke-miterlimit=\"10\"\/>\n<path class=\"two\" d=\"M14.272 18.7267V13.6327C14.772 13.6327 15.2328 13.6327 15.6958 13.6267C15.7718 13.6267 15.9031 13.5607 15.9131 13.5077C16.0281 12.8697 16.1249 12.2277 16.2339 11.5437H14.2671C14.2671 11.0247 14.2671 10.5437 14.2671 10.0627C14.2551 9.87274 14.308 9.68435 14.417 9.52832C14.526 9.37229 14.6847 9.25785 14.8672 9.20368C15.0801 9.14115 15.3001 9.10751 15.522 9.10368C15.776 9.08668 16.0332 9.10368 16.2852 9.10368V7.36868C15.8852 7.35068 15.5141 7.33168 15.1401 7.31668C14.8644 7.29425 14.5876 7.28624 14.311 7.29268C13.7675 7.30104 13.2455 7.50737 12.8433 7.87299C12.441 8.23862 12.186 8.73842 12.126 9.27868C12.0574 9.92597 12.0291 10.5769 12.041 11.2277C12.041 11.3277 12.0319 11.4277 12.0259 11.5567H10.1899V13.6347H12.0479V18.7267H14.272Z\" fill=\"#5B5B5B\"\/>\n<\/svg>            <\/a>\n        <\/li>\n        \n\n        <li>\n            <a href=\"https:\/\/twitter.com\/intent\/tweet?text=Reviving the industry through 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18.455 18.5081 18.5 18.4751C18.491 18.4601 18.484 18.4461 18.475 18.4331C17.967 17.7801 17.459 17.1271 16.95 16.4741C15.857 15.0701 14.764 13.6651 13.669 12.2631C13.615 12.1941 13.608 12.1541 13.676 12.0861C13.953 11.8081 14.221 11.5231 14.493 11.2411C15.534 10.1631 16.576 9.08512 17.617 8.00612C17.771 7.84612 17.924 7.68612 18.099 7.50212C17.814 7.50212 17.56 7.50912 17.308 7.49912C17.177 7.49412 17.091 7.53712 17.004 7.62812C15.749 8.93112 14.49 10.2301 13.235 11.5331C13.168 11.6031 13.146 11.5891 13.095 11.5221C12.077 10.2121 11.057 8.90312 10.04 7.59212C9.986 7.52212 9.93 7.50012 9.844 7.50012C8.777 7.50212 7.71 7.50112 6.643 7.50212C6.603 7.50212 6.557 7.48512 6.517 7.52512C6.53 7.54312 6.542 7.56012 6.554 7.57712C8.082 9.55512 9.609 11.5331 11.139 13.5091C11.198 13.5851 11.209 13.6261 11.133 13.7041C9.764 15.1131 8.399 16.5251 7.034 17.9371L7.035 17.9391ZM8.059 8.30412C8.043 8.28412 8.03 8.26212 8.014 8.24012C8.048 8.19612 8.095 8.21612 8.135 8.21612C8.596 8.21412 9.057 8.21812 9.518 8.21312C9.621 8.21212 9.685 8.24212 9.746 8.32212C10.664 9.50912 11.585 10.6941 12.505 11.8791C13.993 13.7961 15.482 15.7121 16.97 17.6291C16.99 17.6551 17.008 17.6831 17.044 17.7351C16.504 17.7351 15.991 17.7351 15.478 17.7351C15.413 17.7351 15.387 17.6921 15.356 17.6521C14.356 16.3711 13.357 15.0891 12.357 13.8081C10.925 11.9731 9.492 10.1391 8.059 8.30412Z\" fill=\"#5C5B5C\"\/>\n<\/g>\n<\/svg>\n            <\/a>\n        <\/li>\n        \n\n        <li>\n            <a href=\"https:\/\/www.linkedin.com\/sharing\/share-offsite\/?url=https%3A%2F%2Flecercledeseconomistes.fr%2Fen%2Farticles%2Findustry-innovation%2Freviving-the-industry-through-innovation%2F\" title='Partager sur Linkedin' target='_blank'>\n                \n                <svg class=\"linkedin\" width=\"25\" height=\"26\" viewBox=\"0 0 25 26\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n<path class=\"one\" d=\"M24.8649 0.587891H0.0258789V25.4269H24.8649V0.587891Z\" stroke=\"#5B5B5B\" stroke-miterlimit=\"10\"\/>\n<path class=\"two\" d=\"M18.1309 13.5412C18.1539 15.1962 18.144 16.8512 18.144 18.5062C18.1386 18.5827 18.1283 18.6588 18.1138 18.7342C17.4238 18.7342 16.743 18.7342 16.063 18.7342C15.826 18.7342 15.8902 18.5472 15.8892 18.4182C15.8892 17.2602 15.8892 16.1022 15.8892 14.9432C15.8892 14.8222 15.8892 14.7002 15.8892 14.5792C15.8913 14.3853 15.8548 14.1928 15.7817 14.0132C15.7087 13.8336 15.6002 13.6703 15.4634 13.5329C15.3265 13.3955 15.1637 13.2867 14.9844 13.2129C14.805 13.1391 14.6129 13.1018 14.4189 13.1032C14.005 13.0978 13.6058 13.2566 13.3086 13.5448C13.0114 13.833 12.8404 14.2272 12.833 14.6412C12.816 15.8412 12.8332 17.0412 12.8252 18.2482C12.8252 18.7912 12.8952 18.7332 12.3252 18.7362C11.7552 18.7392 11.1838 18.7362 10.5918 18.7362V11.1462H12.8198V12.1112C12.9688 11.9552 13.0519 11.8742 13.1279 11.7882C14.1279 10.6732 17.1092 10.5882 17.9092 12.5482C18.0427 12.863 18.1176 13.1994 18.1309 13.5412Z\" fill=\"#5B5B5B\"\/>\n<path class=\"three\"d=\"M8.09164 7.27812C8.36496 7.27255 8.63415 7.34853 8.86411 7.49635C9.09406 7.64417 9.27472 7.85713 9.38315 8.10808C9.49157 8.35903 9.52247 8.63659 9.4725 8.90535C9.42253 9.17412 9.29376 9.4219 9.10239 9.61711C8.91101 9.81232 8.66601 9.94611 8.39829 10.0014C8.13056 10.0567 7.85251 10.031 7.59946 9.92755C7.34641 9.82413 7.12974 9.64767 6.97739 9.42069C6.82504 9.19371 6.74385 8.92649 6.74399 8.65312C6.73999 8.47373 6.77175 8.29535 6.83774 8.12849C6.90373 7.96163 7.00265 7.80966 7.12827 7.68153C7.25388 7.5534 7.40367 7.4517 7.56918 7.38242C7.7347 7.31314 7.91221 7.27767 8.09164 7.27812Z\" fill=\"#5B5B5B\"\/>\n<path class=\"four\"d=\"M9.22314 11.1509V18.7169H7V11.1509H9.22314Z\" fill=\"#5B5B5B\"\/>\n<\/svg>            <\/a>\n\n        <\/li>\n        \n<\/ul>\n\n  \n    \n    \n<\/div>\n        <\/div>\n\n\n        \n\n<\/div>\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer is-style-spacer-medium\"><\/div>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-16018d1d wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button is-style-outline is-style-outline--1\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/lecercledeseconomistes.fr\/wp-content\/uploads\/2023\/12\/cercle-eco_cahier-4-rebonds_web-pages.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Download the booklet (pdf)<\/a><\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:66.66%\">\n<p><strong>Beginning in the 2010s, awareness of the need to reindustrialize France and the effective movement that followed accelerated in the early 2020s with the Covid-19 pandemic and the war in Ukraine, these two crises shaking up production chains and highlighting France&#8217;s weaknesses in its industrial autonomy.<\/strong><\/p>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer is-style-spacer-medium\"><\/div>\n\n\n\n<p>Since 2017, 80,000 net jobs in industry have been created and the industry&#8217;s share of GDP has (finally) stabilised. It was also, Nicolas Dufourcq reminds us, during this decade that Bpifrance was created, in 2013.<\/p>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer is-style-spacer-medium\"><\/div>\n\n\n\n<p>In a context of exacerbated globalization where protectionism has become commonplace, France must adopt an &#8220;emerging country mentality&#8221; towards its industry, says Nicolas Dufourcq. Becoming a champion of industrial sectors, mainly with high added value, requires support as close as possible to innovative companies, both in terms of financing and by strengthening the functioning of the economy in knowledge &#8220;technopoles&#8221; where the links between entrepreneurs, universities and financiers must be tightened. Reindustrialization is also at the forefront a technological challenge that should make it possible to support and accelerate the decarbonization of France.<\/p>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer is-style-spacer-normal\"><\/div>\n\n\n\n<hr class=\"wp-block-separator alignwide has-text-color has-purple-color has-alpha-channel-opacity has-purple-background-color has-background is-style-wide\"\/>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer is-style-spacer-normal\"><\/div>\n\n\n\n<p>The health crisis and the war in Ukraine have been a stark reminder of the points of fragility born of the break-up of our industrial value chains, spread across the globe, the result of 40 to 50 years of trade globalization. Coupled with the challenges of profound transformations of our productive apparatus required by the climate transition, and in Europe with the question of energy being more expensive than before the crisis, it is therefore a succession of new challenges that are facing French industry, which was not lacking in them. The renaissance of industry in France is nevertheless possible and innovation is, more than ever, the key to this renewal.<\/p>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer is-style-spacer-medium\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Reindustrialization, a long-term process that can only be achieved through innovation<\/h2>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer is-style-spacer-medium\"><\/div>\n\n\n\n<p>The process of deindustrialization of the French territory has been profound. This has been established for a long time. From the mid-1990s to the mid-2010s, in nearly 20 years, the French economy lost nearly 1 million manufacturing jobs on its territory. In reality, we could go back several decades, but this period is instructive insofar as this movement was not experienced with the same intensity by all industrialized countries (Germany or Switzerland being the typical examples, with a weight of industry in GDP that remained stable during the same period).<\/p>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer is-style-spacer-medium\"><\/div>\n\n\n\n<p>Not so much that French companies have lost the ability to produce and sell their products around the world. France still has efficient and powerful industrial companies, with a global reach. But more than our neighbours, with the possible exception of the United Kingdom, they have strongly developed their productive base abroad. In a context of globalization exacerbated by China&#8217;s entry into the WTO in 2001 and France&#8217;s entry into the euro zone around the same time, the productive base located in France has weakened markedly. Without going over all the factors that may have led to this movement, detailed in a book in which I wanted to have all the stakeholders of that time testify, the result is there. A drop in the weight of industry in GDP from 15% to 10%, a sharp decline in employment, companies that are still conquering but whose sales from their foreign subsidiaries represent nearly 3 times their domestic value added (compared to parity for German, Italian and American companies), a large and persistent trade deficit and a lasting weakening of the territories seeing industrial activity erode.<\/p>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer is-style-spacer-medium\"><\/div>\n\n\n\n<p>It has been clear to successive governments since 2012 that this situation needs to be halted and reversed. A rebound that public policies are trying to stimulate more and more vigorously. While the gap in cost-competitiveness that had widened with our partners and close competitors in Europe (Germany, Northern Europe) in the early 2000s has led to a major effort to reconverge since then, in particular through the reduction of contributions on wages and more recently the reduction of production taxes, no single policy can resolve structural differences in cost competitiveness with the countries of Eastern or Southern Europe.  and even more so with emerging countries. These more supply-side policies are therefore only understood as a necessary condition to improve the room for manoeuvre of French companies, allowing them to invest and innovate, to digitize and automate, real levers for building a solid and competitive local offer. It is equally clear that such a movement can only take place over a long period of time and with the fruit of deep and patient policies. The creation of Bpifrance in 2013 was one of the milestones in this direction, with the mission of supporting the innovation capacity of industrial companies, and compensating for the long-degraded self-financing capacities of these companies exposed to tough international competition and poorly positioned in the range.<\/p>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer is-style-spacer-medium\"><\/div>\n\n\n\n<p>The first successes of these policies have been recorded, in the years preceding the health crisis, with a relative stabilization of the weight of industry in GDP, a rebound in the creation of industrial jobs in the economy (+80K or so since the end of 2017) reversing a continuous trend of contraction since 2001, a net balance sheet of factory creations identified by various increasingly positive barometers and an increasingly strong dynamic of foreign investment Industrial. However, there is still a lot of room for improvement. As France still has an innovation deficit to fill: a persistent lag of nearly 1 point of GDP in R&amp;D expenditure or a rate of innovative industrial SMEs, at 54%, 20 points lower than Germany, the continuation of this supply-side policy, favourable to the competitiveness of companies, is therefore essential to succeed in reviving industry in our territories.<\/p>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer is-style-spacer-medium\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Challenges that are piling up and reinforcing the key issue of innovation<\/h2>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer is-style-spacer-medium\"><\/div>\n\n\n\n<p>Faced with these structural challenges to the competitiveness of French industry, many challenges have emerged or have increased in recent years that will have to be met by the national industry to achieve its objective of renewal.<\/p>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer is-style-spacer-medium\"><\/div>\n\n\n\n<p>On the one hand, the war in Ukraine has gone through this and the questioning of European energy supplies is a major challenge for the continent&#8217;s industrialists. Gas and electricity prices in Europe, although back to levels well below the peak reached in the summer of 2022, remain significantly higher than before the health crisis and than those in other geographical areas. The fall in European energy consumption observed over the past year has certainly been due to greater sobriety and efficiency in households and businesses, but also to a sometimes sharp drop in production in heavy industry, of 10% to 20% in certain activities.<\/p>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer is-style-spacer-medium\"><\/div>\n\n\n\n<p>On the other hand, global competition is intensifying enormously in medium- to high-tech sectors. With the return of increasingly assertive industrial policies (and less and less compatible with WTO rules), an economy like France faces both emerging countries increasingly committed to the upgrading of their industry, sometimes technological leaders in certain segments, and both industrialized countries determined to reconsolidate industrial value chains on their territory. An example of this is China&#8217;s automotive sector, which has now become a net exporter after the rapid development of its electric vehicle supply. The weight of this same economy in the production of key technologies for the ecological transition (photovoltaics, wind turbines, heat pumps, etc.) is another. In industrialized countries, and in particular in the United States, increasingly proactive industrial policies such as the Inflation Reduction Act or the Chips Act, which are sometimes protectionist, clearly show that reindustrialization will require very great efforts to stay in the race.<\/p>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer is-style-spacer-medium\"><\/div>\n\n\n\n<p>Above all this, the ecological transition adds a set of additional challenges to that of reindustrialization. It presupposes a profound movement towards the decarbonisation of industrial processes, particularly in heavy industry which concentrates emissions, as well as the control and development of a competitive offer on key &#8220;green&#8221; technologies (hydrogen, batteries, low-carbon mobility, heat pumps, etc.). And all this in a world where decarbonisation policies remain fundamentally uncoordinated, and therefore potentially harmful to competitiveness in the short term.<\/p>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer is-style-spacer-medium\"><\/div>\n\n\n\n<p>So far, the causality between decarbonisation and industrialisation has been rather negative. In the past, deindustrialization has rather favored the decline of national emissions (down 23% since 1990, those of the manufacturing industry have fallen twice as fast), a decline moreover in trompe l&#8217;oeil since France was becoming more and more net importer of carbon (with finally a carbon footprint of French demand 50% higher than national emissions). This negative causality is a significant risk, especially in the case of tempo imposed by a &#8220;disorderly&#8221; transition. An illustration of this was made last winter with the impact of the sharp rise in energy prices on heavy industry production. In the face of this type of negative causality, innovation is the only way out.<\/p>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer is-style-spacer-medium\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Successful reindustrialization through innovation, a few ideas<\/h2>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer is-style-spacer-medium\"><\/div>\n\n\n\n<p>All these challenges and the intense competition that sets in could be frightening. On the contrary, we believe, more than ever, that the path to reindustrialization is possible in France, with the will, the right tools and the right means. As mentioned earlier, there have been increasingly positive indicators on the French industry front in recent years and show that paradigm shifts are possible, provided we have the patience and the necessary resolve.<\/p>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer is-style-spacer-medium\"><\/div>\n\n\n\n<p>In the field of innovation in the broadest sense, France has been able to strongly develop a deep and efficient tech ecosystem over the last 10 years, with the help of a complete and efficient financing toolbox. On the industry side, France still has a large backbone of technological leaders in the territory. It also has high-level science, university talent, laboratories, and a breeding ground for successful and ambitious entrepreneurs.<\/p>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer is-style-spacer-medium\"><\/div>\n\n\n\n<p>Based on these levers, the few points developed below outline a certain number of avenues and levers for successful reindustrialization through innovation, particularly on the financing side, on which Bpifrance is already mobilizing and will mobilize even more in the coming years.<\/p>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer is-style-spacer-medium\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Develop a high-performance <em>deeptech<\/em> ecosystem and enable the emergence of industrial startups<\/h2>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer is-style-spacer-medium\"><\/div>\n\n\n\n<p>An important first step is to be done upstream on the creation of new industrial activities. To revive the demographics of industrial companies, it is important to increase the number of <em>deeptech<\/em> startups, led by entrepreneurs often from the world of research and inventors of complex objects. Indeed, a large number of these technology-intensive startups are destined to create industrial sites, which are natively decarbonized and digitized.<\/p>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer is-style-spacer-medium\"><\/div>\n\n\n\n<p>In particular, it is a question of breaking down barriers in the world of research by bringing together universities and technology transfer structures with ecosystems of entrepreneurs and investors, and of accelerating the growth of these start-ups via a continuum of dedicated funding. This is the purpose of Bpifrance&#8217;s Deeptech Plan, launched in 2019, which aims to make France a major player in disruptive innovation on an international scale, with the ambition of creating 500 <em>deeptech<\/em> startups per year by 2025. These ambitions have been reinforced by the resources made available by the France 2030 programme and stronger coordination with academic actors to strengthen the dynamic of creation.<\/p>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer is-style-spacer-medium\"><\/div>\n\n\n\n<p>We are seeing the first results. With 1,800 <em>active deeptech<\/em> startups (320 created in 2022, a rate of creation twice as high as 5 years ago), the landscape of disruptive innovation in France is changing profoundly. With full support and financing from the pre-creation to the financing of the production lines.<\/p>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer is-style-spacer-medium\"><\/div>\n\n\n\n<p>Beyond <em>deeptech<\/em> alone, it is an entire ecosystem of industrial-oriented startups that must be supported by patient capital. In this context, Bpifrance launched in 2021, as part of France 2030, the Startups and Industrial SMEs Plan aimed at mobilizing \u20ac2 billion between 2022 and 2025 through aid, loans, investments and support schemes. This intervention is all the more crucial as there are still difficulties in finding private co-financiers for these upstream, innovative and capital-intensive investment projects.<\/p>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer is-style-spacer-medium\"><\/div>\n\n\n\n<p>By supporting these French industrial start-ups and SMEs in their innovation efforts, the objective is to create 100 new factories per year by 2025 (in addition to the &#8220;natural&#8221; flow of French factory creations) and 10 industrial unicorns by 2030. 35 startups had already inaugurated industrial sites in 2022.<\/p>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer is-style-spacer-medium\"><\/div>\n\n\n\n<p>This support for upstream industrial innovation is also key to generating a competitive and natively decarbonised industry. In 2022, nearly half of the industrial startups that raised were identified as <em>greentech<\/em>, i.e. as solution providers for the climate transition of our economy (with, for example, a significant fundraising by the startup Verkor). Another telling figure: 81% of the factories created in 2022 by industrial start-ups stemming from research are <em>greentech<\/em>.<\/p>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer is-style-spacer-medium\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Financing innovation and decarbonisation of industrial SMEs and mid-caps through mass door-to-door canvassing<\/h2>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer is-style-spacer-medium\"><\/div>\n\n\n\n<p>The renewal of the fabric of SMEs, ETIs as well as large industrial groups in our territories, our French Fab, calls for a profound renewal of ranges and production methods through innovation and decarbonization. Since its creation, it has been Bpifrance&#8217;s raison d&#8217;\u00eatre to support this transformation through financing but also with an adapted support offer.<\/p>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer is-style-spacer-medium\"><\/div>\n\n\n\n<p>In terms of decarbonisation, in concrete terms, we are aiming for a mass door-to-door canvassing of 20,000 SMEs and mid-caps over the next five years in order to offer all the necessary tools to entrepreneurs to engage in the development of a decarbonised and competitive offer. This involves support for the definition of the transition roadmap and the resulting operational actions, the partial assumption of the initial expenses related to the transition and support for long-term and appropriate financing to develop production equipment.<\/p>\n\n\n\n<p>Financing and supporting innovation, robotisation and the digitalisation of production processes will also remain key to ensuring the competitiveness of industrial SMEs and mid-caps. Bpifrance will continue to mobilize its full range of financing and support in order to provide these companies with the necessary levers to succeed in these transformations, alongside private financing. We are also convinced that reviving industry through innovation does not only concern high-tech sectors holding new industrial property, but also any innovation in use, processes (robotic, carbon-free) that makes it possible to strengthen competitiveness, range positioning and therefore the differentiation of companies. Here too, the financing chain, from subsidies to loans and equity investments, and access to an appropriate support offer, must be able to support the emergence of this type of industrial project.<\/p>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer is-style-spacer-medium\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Supporting strategic investments in large production units in the region<\/h2>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer is-style-spacer-medium\"><\/div>\n\n\n\n<p>The reindustrialisation of the territory and the rebalancing of our external imbalance also requires the ability to bring out very large production units, particularly in the key technologies of the future.<\/p>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer is-style-spacer-medium\"><\/div>\n\n\n\n<p>In an exacerbated global and European competition, this requires and will require a strong contribution from the public authorities to bring out new &#8220;industrial cathedrals&#8221;. France has acquired significant resources with France Relance and France 2030 to support the creation of gigafactories such as the microprocessor factory in Crolles, the battery plant in Douvrin or an automated electrolyser pilot line in B\u00e9ziers.<\/p>\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer is-style-spacer-medium\"><\/div>\n\n\n\n<p>In addition to the development of production capacities on the key technologies of digitalization and decarbonization, it is also a question of transforming the current large units operating on production technologies that are still brown. The decarbonisation of heavy industry must therefore be a priority. This is a constraint but also an opportunity that will soon be conferred by the increasingly strong tariff barriers put in place by the European Union. The more heavy industry reduces its carbon footprint, the more the sector will be able to benefit from the relative protection of the carbon border tax. The investment effort to be made, particularly in electrification and carbon sequestration, which will inevitably require a share of public support, is being defined by the creation of decarbonization roadmaps for the 50 main French emitting industrial sites.<\/p>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer is-style-spacer-medium\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Ensuring the development of the skills needed for the industrial renaissance<\/h2>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer is-style-spacer-medium\"><\/div>\n\n\n\n<p>For any reindustrialisation scenario to work, it must &#8220;loop&#8221; on a certain number of parameters, and not only that of the financing of innovative industrial investments.<\/p>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer is-style-spacer-medium\"><\/div>\n\n\n\n<p>The needs will inevitably be significant in terms of infrastructure, and in particular energy infrastructure to support the needs of electrification, the development of carbon-free hydrogen, etc. Again, in order for this need for equipment to fully participate in reindustrialisation, support for innovation in sectors where technological lag has been taken, such as wind power or photovoltaics, will be essential. In the same way as on some of the key technologies related to the industry of the future and decarbonization where a certain delay exists, France must adopt, to say it provocatively, an emerging country mentality. That is to say, to accept that we will no longer be in the lead on certain technologies, and to do in the coming years what China has been able to do very well for the past 20 years.<\/p>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer is-style-spacer-medium\"><\/div>\n\n\n\n<p>Reindustrialization will also require the mobilization of talent, which is essential for industrial sectors to succeed in the challenge of rebounding and innovation. We like to reason about a Bpifrance objective of rebounding the weight of the manufacturing industry from 10% to 12% of GDP by a horizon of around 2035 (i.e. a reindustrialization movement of about 20 years after the opposite movement observed since 1995 and commented on above). We can estimate by a simple calculation that under the conditions of trend productivity of the industry (pre-health crisis), about 400K to 500K additional jobs would be needed in industry by 2035 for the sector to regain more weight in the national production mix. The stakes in terms of skills are therefore considerable. According to a recent study, factors related to the availability of talent and the strength of industrial and innovation ecosystems already account for 22% of industrial investment decisions, close to the burden of costs (28%). The persistent difficulties of recruitment, the unflattering rankings for several years of France in terms of initial training show that the issue of human capital is crucial for our country. And especially in the industry in high demand for cutting-edge technological skills. This requires an unprecedented effort on initial and continuing training, but also on an intelligent migration policy, which we mentioned in a recent study by our think tank, Bpifrance Le Lab. We also strongly believe in improving the attractiveness and image of the industry, which are essential elements to stimulate the training of current and future French workers.<\/p>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer is-style-spacer-medium\"><\/div>\n\n\n\n<p>All in all, the efforts to be made to revive our industry are significant and will require patience and consistency over the long term. Deindustrialization took several decades to take place. Reindustrialization will do the same. The forces for the regeneration of our industrial fabric are already present and it is our duty to public authorities, entrepreneurs, employees and citizens to mobilize for this great cause for our economy and our society.<\/p>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer is-style-spacer-normal\"><\/div>\n\n\n\n<hr class=\"wp-block-separator alignwide has-text-color has-purple-color has-alpha-channel-opacity has-purple-background-color has-background is-style-wide\"\/>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer is-style-spacer-normal\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Bibliography<\/h2>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer is-style-spacer-medium\"><\/div>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Arqui\u00e9 A., Grejbine T., Twenty years of social plans in industry: what lessons for the ecological transition?, CEPII newsletter, March 2023<\/li>\n\n\n\n<li>Bpifrance, Startups and industrial SMEs, a growth driver for French industry, March 2023<\/li>\n\n\n\n<li>Bpifrance, Review of the 4-year Deeptech Plan, March 2023<\/li>\n\n\n\n<li>Bpifrance, French Greentech: a strong dynamic to accelerate decarbonization, Apr 2023<\/li>\n\n\n\n<li>Bpifrance Le Lab, Foreign employees in industrial SMEs and ETIs, one of the answers to recruitment difficulties?, June 2023.<\/li>\n\n\n\n<li>Dufourcq N., La d\u00e9industrialisation de la France, 1995-2005, 2022.<\/li>\n\n\n\n<li>France Strat\u00e9gie, Industrial policies in France \u2013 International developments and comparisons, Nov 2020.<\/li>\n\n\n\n<li>Mahfouz S., Pisani Ferry J., The Economic Impacts of Climate Action, May 2023.<\/li>\n\n\n\n<li>McKinsey, Redefining Industrial Strategies in the Light of Major Recent Changes, June 2023.<\/li>\n\n\n\n<li>McKinsey, Skill shift: automation and the future of workforce, 2018.<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"featured_media":4368,"parent":0,"template":"wp-custom-template-single-post-classic","cat-post-theme":[158],"cat-post-type":[135],"cat-blog-event-media-type-serie":[],"class_list":["post-6575","blog","type-blog","status-publish","has-post-thumbnail","hentry","cat-post-theme-industry-innovation","cat-post-type-news"],"acf":{"is_featured_post":false,"display_twitter_hastags":false,"twitter_hastags":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Reviving the industry through innovation - Le cercle des \u00e9conomistes<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/lecercledeseconomistes.fr\/en\/articles\/industry-innovation\/reviving-the-industry-through-innovation\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Reviving the industry through innovation - Le cercle des \u00e9conomistes\" \/>\n<meta property=\"og:description\" content=\"Beginning in the 2010s, awareness of the need to reindustrialize France and the effective movement that followed accelerated in the early 2020s with the Covid-19 pandemic and the war in Ukraine, these two crises shaking up production chains and highlighting France&#8217;s weaknesses in its industrial autonomy. 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