Has France taken the UK’s start-up crown?
2 mins read
Radio 4's Today programme recently reported from the Consumer Electronics Show, the monster Las Vegas event. The report covered drones, wearables and the like, but it also touched on technology innovations coming from European firms. Yes, there were lots of small UK based companies present, but the big surprise was the number of French companies there.
We expect the UK to be a force in technology start-ups: after all, we have a vibrant and long-standing reputation for founding innovative new technology companies. But France? It has never really been in the same league – sorry France, but you know it's true.
So how has France advanced its position so quickly? Well, its government is on board for a start – two government officials were at CES to spread the word. And the launch of LaFrenchTech nearly a year ago has given this drive a focus.
The rise of the French tech start-up scene reminded me of a conversation I had with Sarah Macken, CEO of ESCO – the Electronics Systems Community – last year. ESCO is working hard to get Government support and to help companies to access European Commission funding that is there for the taking.
ESCO, in case you are unaware, has been formed to promote and grow the UK's electronics systems industry. It has the support and involvement of many prominent people in the industry and is co-chaired by the Minister of State for Intellectual Property. But electronics systems is still not one of the Government's priority industries.
There is a European industry focused programme called ECSEL – Electronic Component and Systems for European Leadership – with €4.8billion of funding available to contribute to the development of a strong and globally competitive electronics and systems industry in the EU.
The EC matches funding from governments and that is matched by a contribution in-kind from industry. ESCO wants to ensure UK companies take full advantage of this.
Historically, the UK has been very slow compared to other countries at taking advantage of EU funding. Consider ECSEL's predecessors – ENIAC (nanotechnology) and ARTEMIS (embedded computer systems). Between 2008 and 2013, the UK amassed a paltry €93m of investment – that's Government, EC and industry combined – compared to the €1.179bn invested in France. Eight other countries had a bigger piece of the pie than the UK, including Germany, the Netherlands, Italy and Spain.
Perhaps part of France's rise to prominence in tech start-ups is the fact its government is willing to invest in technology and is being very smart in its approach to funding.
The UK is home to world class multinational electronics components and systems companies. These companies enable the innovation in many important growth sectors, including automotive, energy, robotics, healthcare and defence. In spite of this, successive governments have a very poor record of recognising the importance of the industry.
Invest in electronics systems and the impact will be amplified across a whole range of industries.
To me, it's a no brainer. Let's hope the UK Government wakes up to this opportunity and helps to keep the UK at the forefront of technology innovation.
Richard Parker is managing director of Wildfire PR