France 2030: The Pitfalls of Macron’s Investment Plan

The president unveiled the sectors in which the state will invest 30 billion, including 3 to 4 from 2022, to build new industrial sectors.

With France 2030, Emmanuel Macron continues to plow his ambition of “start-up nation”
Putting an “industrial nation start-up” into orbit is the project that underpins the France 2030 investment plan. The president constantly referred to a logic of acceleration, collaboration and disruptive innovation specific to the world of start-ups.

“The battle for innovation and the battle for industrialization must be waged at the same time. The opposition between start-ups and industry is a twentieth century opposition, ”declared Emmanuel Macron, presenting the France 2030 plan on October 12 at the Elysée Palace. five years (assuming the re-election of the current president), this plan aims to develop new sectors, as well as revitalize those “where we are threatened, but which we have no right to abandon” .

Emmanuel Macron has not been kind to large companies, judging that “disruptive innovation is no longer done in large groups”. An observation shared by economist Elie Cohen, who notes “that the President has insisted a lot on the contribution of start-ups, including in sectors where they are not naturally expected, such as nuclear or space”.

According to this specialist in industrial issues, “established companies are victims of what is called ‘path dependence’, which, for example, leads a diesel engine specialist to focus his research on areas other than electricity. This is how Big Pharma pushed their research into their blockbusters, ignoring that innovation was happening at their margins in biotechs. ”

The principle of the plan is therefore to give a large place to new entrants: “We must agree to finance innovation wherever it comes from: large companies, mid-sized companies, start-ups. The most innovative wins and calls for funding, “insisted the head of state. Which in parallel announced all the same an arrow of 5 billion euros towards start-ups, including 3 billion in equity.

Beyond start-ups, their culture

It is not only in the direction of funding that we must understand the confidence that the President places in the capacities of start-ups. Both in tempo and in general philosophy, the “start-up” culture is honored to reindustrialize the country.

The Head of State has also promised for the governance bodies of France 2030, which will have to select the funded projects: “We have very intelligent management systems, but which take four to five times longer than those of our competitors ”. The France 2030 “commando” will have to avoid this pitfall.

Another attribute of the start-up philosophy: “acceptance of failure”. But failure that does not take years to recognize. “There has to be and we have to get out of it quickly. Finally, the emphasis was placed on the logic of collaboration. The idea is not to expect everything from start-ups, but that large groups know how to identify and integrate the right innovations. He advised trusting “emergence” and assured that the plan would fail if everyone reasoned, “How much money is there for me?” “. A very human reflex, which will not escape business leaders.

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France 2030: the Pitfalls of Macron's Investment Plan - /10

Summary

The president unveiled the sectors in which the state will invest 30 billion, including 3 to 4 from 2022, to build new industrial sectors.

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