Between 2020 and 2022, nearly 19% of innovative businesses benefited from a tax credit dedicated to innovation, such as the research tax credit (CIR) or the innovation tax credit (CII). These mechanisms are pillars of R&D financing in France: in 2023, the research tax credit supported nearly 22,000 firms.
In addition to tax credits, 18% of innovative businesses received direct aid from local authorities, public agencies or the European Union. This support is part of initiatives such as “France 2030”, which aim to fast‑track the country’s ecological and technological transition.
Between 2020 and 2022, 46% of French businesses (10 employees or more) took innovative steps, a stable figure compared with the previous period. On average, these businesses devoted 10% of their revenues to innovation activities in 2022, efforts that place France seventh among European countries in terms of innovation.
France stands out for its innovations focused on production processes, which are twice as high as those focused on products. This positioning makes it one of the European leaders in this field.
Innovation is not limited to improving economic performance. Nearly 50% of innovative businesses say that their investments have had significant environmental benefits, particularly in terms of reducing energy consumption and the carbon footprint.
Large businesses, which are better resourced, remain the main beneficiaries of public funding: 24% of firms with more than 250 employees receive state aid, compared with only 16% of SMEs (10 to 49 employees).
However, certain mechanisms, such as the “innovative new company” (JEI) status and the innovation tax credit, play a crucial role for startups and small structures. These mechanisms enable these key players to benefit from tax and social security exemptions to develop quickly.
As part of the 2025 budget, the government is re‑assessing state aid, with the research tax credit, which represents one of the most expensive mechanisms, in their sights. The aim is to release €400 million to strengthen aid, such as the innovation tax credit and the “innovative new company” (JEI) status, which are particularly popular with SMEs and startups.
The figures speak for themselves: state aid is essential to encourage innovation, maintain the competitiveness of businesses and meet environmental challenges. Reducing these mechanisms could slow down the momentum that makes France a major player in innovation in Europe. Innovation is the engine driving our growth and our ecological transition. It is essential to guarantee a solid financial framework so that French businesses can continue to innovate and build a sustainable future.