The R&D hub in Europe
Enter the 1st R&D region in Europe

          Nb of registered patents in 2007 per major R&D region in Europe



   2000
   1800
   1600
   1400
   1200
   1000
    800
    600
    400
    200
      0
             Paris   Stuttgart Oberbayern Hessen   Darmstadt Lombardia Düsseldorf
            Region

    Source: Eurostat 2010




                                                                                    2
Follow the path of major IT companies

   Non French Companies opening a R&D center in the Paris Region




                                                                   3
Get your R&D funded with the R&D tax credit

           With the R&D tax Credit, you can save:
                     - 40% of the R&D expenses the 1st year
                     - 35% of the R&D expenses the 2nd year
                     - 30% thereafter the 2nd year*

           The government forecasts €4.95 billion expenses in 2011
           to finance the R&D tax credit! **



R&D Tax Credit is applied to one’s corporate income taxes and
concerns R&D project expenses such as payroll expenses, outsourced
operations, patent registration, technology watch, depreciation costs, and
more.
  * Expected rates for 2011
. ** source: http://www.acies-cg.com/fr/expertise/commentaires-sur-l-actualite/budget-
  enseignement-superieur-et-recherche-dans-le-projet-de
                                                                                         4
And save 47% of your payroll cost in 3 years
 Business Case: an IT company opens an R&D center with 3 engineers
IT engineers      Total                                       Y1    Y2    Y3    Total
Experience       Cost in
Level:           k$*/year            Total Payroll (in k$)    246   246   246   738

2 years             68              % allocated time in R&D   90    90    90

6-10 years          80                 HR cost of R&D         221   221   221   663
> 10 years          98                  Overheads %**         50    50    50
Total Cost         246
                                         Overheads $          111   111   111
*Source PayScale, Jul10:
average cost including 50% of       Total R&D cost Basis      332   332   332   996
employer charges
           1€ = 1.3$                    % of tax credit       40%   35%   30%

                                        Tax Credit in $       133   116   100   349

  **fixed rate estimated for 2011
                                       Net Salary Cost        113   130   146   389
  to cover the f expenses
  around the staff: renting,           % of payroll cost      46    53    60    53%
  electricity
                                         % of discount        54    47    41    47%


                                                                                        5
Get connected with your future R&D & sales partners

     Telecom                                  Digital Content
                                              (videogames, search, mobile,
                                                        animation)




                          SPs / Integrators



 System Design                                  Open Source
(embedded / HPC/ Cloud)




                                                                             6
Join our competitiveness clusters




What is a competitiveness cluster?
High level large accounts, SMEs and research centers within a specific
geographical zone, working together on collaborative R&D projects.



Why should you join?
1- To get in touch with key players of innovation
2- To get funded
Participate in R&D projects and get up to 45% of your project expenses funded by
the cluster.




                                                                                   7
Systematic is dedicated to infrastructure

    €975 million in 5 years                   Over 540 stakeholders:
    €379 million in public funds             -     110 large enterprises
    through 207 funded projects              -     310 innovative SMEs
                                             -     120 universities and research centres
                                             -     11,000 employees in R&D




                               5 Working Groups:
                3 Verticals:                     2 Technological:
                Automotive/Transport             Systems Organisation, Design
                Telecom                          and Development
                Defence & Security               Freeware




                                                    * Source: System@tic Paris-Region – Jan 09
                                                                                                 8
Cap Digital is dedicated to Digital Content

     €600 million in 5 years                    Over 600 stakeholders:
     €275 million in public funds              -     20 large enterpises
     through 460 funded projects               -     530 + SMEs
                                               -     70 public bodies (Universities, Labs…)




                                    9 Communities:


             Image, Sound, Interactivity    Collaborative technologies
             Video games                    Digital Lifestyle a services
             Knowledge Engineering          Robotics & intelligent objects
             Digital Heritage               Digital design
                                            e-education, e-training




                                                                                              9
Testimonial Google


     In 2010, Google announced the opening of a world wide level
                         R&D center in Paris

 ”Looking at the quality of graduates and at the quality of technical talent, the business
 talent, the public policy talents […]it’s clearly the right thing to do”[…] We are inviting
 startups to come to Google in Paris to build their businesses […] We do this relatively
 rarely and so, from my perspective, this is a historic moment.”




              Eric Schmidt, CEO of Google, speaking to students at Sciences-Po,
              2010 Sept 9.
              http://www.youtube.com/watch?v=tQf5VbYVd3E




                                                                                               10
Testimonial Intel


                    In 2009, Intel opened a R&D center
                     in High Performance Computing

“We find here the right ingredients for our High Performance Computing (HPC) Research
& Development efforts. The creation of large datacenters at Saclay under the Grand
Paris proposals will provide countless skilled engineers plus a large community of
academia, public entities and end-users working together[…] We believe the Grand Paris
project provides a strong momentum for HPC.”




              Christian Morales,
              Vice President and General Manager EMEA for Intel




                                                                                         11
Testimonial Microsoft


                In 2009, Microsoft opened a R&D center
                        in Search Technologies

“To compete in a global, innovation-driven economy, we need to draw on the
world’s smartest, most creative minds. Increasingly, we are finding the talent
we need here in Europe. To tap into that talent, we’ve invested in research and
development across the region and today, Europe is second only to the United
States in the number of engineers and researchers we have working on
creating innovative products and services."




          Steve Ballmer, CEO of Microsoft, at a Paris Event in 2008




                                                                                  12
Testimonial Ulteo

     In 2006, Thierry Koehrlen came from the Silicon Valley
     to create an IT start-up

 “France is kind of a ‘fiscal paradise’ for entrepreneurs. The ideal way to
 maximize in France is to have some kind of R&D activity to be able to profit from
 the R&D Tax Credit. To give you an example, when we started, we received a
 €50,000 and were provided free rent in an incubator for 2 years. Additionally, in
 2007 the R&D tax credit gave us a €150,000 reimbursement for that year’s
 expenses. Foreigners think you need to be French or have connections to be
 able to benefit from these schemes. That simply isn’t true.”



          Thierry Koehrlen, CEO & Co-Founder of Ulteo
          After spending a number of years in Silicon Valley where he cofounded
          Intalio, Thierry Koehrlen returned to France and founded Ulteo.
          The company specializes in professional open virtual desktop
          infrastructure solutions.




                                                                                     13
Our Services


      We assist international companies that seek to start,
    expand or relocate business activities in the Paris Region
                 Free of charge Customized Confidential

    Finding your premises                  Your introduction to the market
    Offices, warehouses, sites, etc.       Information on your business sector
    Costs of purchasing and renting        Technological and Commercial
    Accompanying you on site visits        partnerships
    Occasional use of our offices          Access to public partners
                                           Publicizing your presence

     Finding your staff                     Setting up your business
    Recruiting local personnel             Legal advice on setting up your company
     Supporting your expatriates           Fiscal information
     Training                              Financing/subsidies
     Information on employment contracts   Providing contacts
     and social security issues


                                                                                     14

Financing your R&D in the Paris Region

  • 1.
    The R&D hubin Europe
  • 2.
    Enter the 1stR&D region in Europe Nb of registered patents in 2007 per major R&D region in Europe 2000 1800 1600 1400 1200 1000 800 600 400 200 0 Paris Stuttgart Oberbayern Hessen Darmstadt Lombardia Düsseldorf Region Source: Eurostat 2010 2
  • 3.
    Follow the pathof major IT companies Non French Companies opening a R&D center in the Paris Region 3
  • 4.
    Get your R&Dfunded with the R&D tax credit With the R&D tax Credit, you can save: - 40% of the R&D expenses the 1st year - 35% of the R&D expenses the 2nd year - 30% thereafter the 2nd year* The government forecasts €4.95 billion expenses in 2011 to finance the R&D tax credit! ** R&D Tax Credit is applied to one’s corporate income taxes and concerns R&D project expenses such as payroll expenses, outsourced operations, patent registration, technology watch, depreciation costs, and more. * Expected rates for 2011 . ** source: http://www.acies-cg.com/fr/expertise/commentaires-sur-l-actualite/budget- enseignement-superieur-et-recherche-dans-le-projet-de 4
  • 5.
    And save 47%of your payroll cost in 3 years Business Case: an IT company opens an R&D center with 3 engineers IT engineers Total Y1 Y2 Y3 Total Experience Cost in Level: k$*/year Total Payroll (in k$) 246 246 246 738 2 years 68 % allocated time in R&D 90 90 90 6-10 years 80 HR cost of R&D 221 221 221 663 > 10 years 98 Overheads %** 50 50 50 Total Cost 246 Overheads $ 111 111 111 *Source PayScale, Jul10: average cost including 50% of Total R&D cost Basis 332 332 332 996 employer charges 1€ = 1.3$ % of tax credit 40% 35% 30% Tax Credit in $ 133 116 100 349 **fixed rate estimated for 2011 Net Salary Cost 113 130 146 389 to cover the f expenses around the staff: renting, % of payroll cost 46 53 60 53% electricity % of discount 54 47 41 47% 5
  • 6.
    Get connected withyour future R&D & sales partners Telecom Digital Content (videogames, search, mobile, animation) SPs / Integrators System Design Open Source (embedded / HPC/ Cloud) 6
  • 7.
    Join our competitivenessclusters What is a competitiveness cluster? High level large accounts, SMEs and research centers within a specific geographical zone, working together on collaborative R&D projects. Why should you join? 1- To get in touch with key players of innovation 2- To get funded Participate in R&D projects and get up to 45% of your project expenses funded by the cluster. 7
  • 8.
    Systematic is dedicatedto infrastructure €975 million in 5 years Over 540 stakeholders: €379 million in public funds - 110 large enterprises through 207 funded projects - 310 innovative SMEs - 120 universities and research centres - 11,000 employees in R&D 5 Working Groups: 3 Verticals: 2 Technological: Automotive/Transport Systems Organisation, Design Telecom and Development Defence & Security Freeware * Source: System@tic Paris-Region – Jan 09 8
  • 9.
    Cap Digital isdedicated to Digital Content €600 million in 5 years Over 600 stakeholders: €275 million in public funds - 20 large enterpises through 460 funded projects - 530 + SMEs - 70 public bodies (Universities, Labs…) 9 Communities: Image, Sound, Interactivity Collaborative technologies Video games Digital Lifestyle a services Knowledge Engineering Robotics & intelligent objects Digital Heritage Digital design e-education, e-training 9
  • 10.
    Testimonial Google In 2010, Google announced the opening of a world wide level R&D center in Paris ”Looking at the quality of graduates and at the quality of technical talent, the business talent, the public policy talents […]it’s clearly the right thing to do”[…] We are inviting startups to come to Google in Paris to build their businesses […] We do this relatively rarely and so, from my perspective, this is a historic moment.” Eric Schmidt, CEO of Google, speaking to students at Sciences-Po, 2010 Sept 9. http://www.youtube.com/watch?v=tQf5VbYVd3E 10
  • 11.
    Testimonial Intel In 2009, Intel opened a R&D center in High Performance Computing “We find here the right ingredients for our High Performance Computing (HPC) Research & Development efforts. The creation of large datacenters at Saclay under the Grand Paris proposals will provide countless skilled engineers plus a large community of academia, public entities and end-users working together[…] We believe the Grand Paris project provides a strong momentum for HPC.” Christian Morales, Vice President and General Manager EMEA for Intel 11
  • 12.
    Testimonial Microsoft In 2009, Microsoft opened a R&D center in Search Technologies “To compete in a global, innovation-driven economy, we need to draw on the world’s smartest, most creative minds. Increasingly, we are finding the talent we need here in Europe. To tap into that talent, we’ve invested in research and development across the region and today, Europe is second only to the United States in the number of engineers and researchers we have working on creating innovative products and services." Steve Ballmer, CEO of Microsoft, at a Paris Event in 2008 12
  • 13.
    Testimonial Ulteo In 2006, Thierry Koehrlen came from the Silicon Valley to create an IT start-up “France is kind of a ‘fiscal paradise’ for entrepreneurs. The ideal way to maximize in France is to have some kind of R&D activity to be able to profit from the R&D Tax Credit. To give you an example, when we started, we received a €50,000 and were provided free rent in an incubator for 2 years. Additionally, in 2007 the R&D tax credit gave us a €150,000 reimbursement for that year’s expenses. Foreigners think you need to be French or have connections to be able to benefit from these schemes. That simply isn’t true.” Thierry Koehrlen, CEO & Co-Founder of Ulteo After spending a number of years in Silicon Valley where he cofounded Intalio, Thierry Koehrlen returned to France and founded Ulteo. The company specializes in professional open virtual desktop infrastructure solutions. 13
  • 14.
    Our Services We assist international companies that seek to start, expand or relocate business activities in the Paris Region Free of charge Customized Confidential Finding your premises Your introduction to the market Offices, warehouses, sites, etc. Information on your business sector Costs of purchasing and renting Technological and Commercial Accompanying you on site visits partnerships Occasional use of our offices Access to public partners Publicizing your presence Finding your staff Setting up your business Recruiting local personnel Legal advice on setting up your company Supporting your expatriates Fiscal information Training Financing/subsidies Information on employment contracts Providing contacts and social security issues 14