Country Focus
Biotechnology in France
The biotech sector in France faces something of a paradox. On the one hand, the French research landscape has been in a state of upheaval for some years. New advancement programs and funding structures have been established and new clusters have formed. On the other hand, there is still a striking shortage of money and the medium-sized sector is barely finding the money to advance the development of their active substances. On a legal level, only research on human embryonic stem cells has so far come under authoritative direction. A genetic engineering law is still pending and is likely to be passed in 2006 whereas the ‘Pacte pour la Recherche’ (research pact) came into effect in april this year.
Research landscape and funding strategy
As regards the field of biotechnology, the French scientific research landscape is mainly concentrated on the areas of health (cancer, neurology, virology) and nutrition (Functional Food) and to some extent agriculture. Public research institutes such as the Centre Nationale de la Recherche Scientifique (CNRS), Institut nationale de la santé et de la recherche nationale (INSERM), the Institut Pasteur or the Institut nationale de la recherche agronomique (INRA) dominate the research landscape, and most biotech enterprises have developed from these institutes. An example of this is ‘Pasteur biotope’, a incubator from the Institut Pasteur, which has been promoting the founding of biotech companies and supplying financial support since 2000. A similar strategy is pursued by INSERM with the Incubator Inserm-Transfert. Marine biotechnology is conducted under the supervision of the Institut francais de Recherche pour l'exploitation de la mer (IFREMER), but makes up only a comparatively small portion of French biotech research. Above all, Paris, Lyon and South France are the most active areas.
Research funding in flux: Emphasis on cancer
The research funding for the bio and life sciences has been in change for some years. Thus, for example, in 2003 a sizeable cancer research program was established with the aim of converting scientific results into clinical products. Research establishments and hospitals from seven regions were brought together under the framework of this so-called ‘Cancéropôles’. On a national level, the program was coordinated with the launch of the newly-founded Institut Nationale du Cancer (INCa), also responsible for a range of national and international research projects and public campaigns regarding cancer-related illnesses and preventive medical examinations. The budget of the INCa amounted to 70.2 million euro in 2005, which will rise to an annual figure of approximately 100 million euro on a long-term basis. The funds come from both the Ministry of Research and the Ministry of Health.
Table 1: Funding ofCancéropôles through INCa
| Year | Budget of INCa for Cancéropôles in million euros |
| 2003 | 16,5 |
| 2004 | 17,68 |
| 2005 | 28 |
Source: INCa (from Date: 2/2006)
In addition to cancer research, the funding is also targeting the fields of neurology and virology. In 2004, a program to promote the fight against rare diseases was announced.
Reorientation of the funding politics: More competition
2004 saw a further innovation in French research funding with the establishment of the Agence Nationale de la Recherche (ANR), which plays a similar role to the project management organizations (Projektträger) in Germany and will coordinate the promotion of projects from the French Ministry of Research. Behind the founding of this agency is a reorientation of the research funding strategy in France. Before, research groups in public bodies could expect to receive a certain amount of funds each year by means of near-automatic procedures. With the establishment of the ANR, this system has now been supplemented by a competition-like application procedure, whereby the individual projects - as in Germany - must apply for funds and a jury decides on the allocation. The budget of the ANR was 350 million euro in 2005 (for 35 selected projects), 650 million euro has been put aside for 2006, set to rise to 1.5 billion euro by 2010 (see table 2). Nevertheless, in comparison with the entire budget of the Ministry of Research, which stands at approximately 20 billion euro in 2006, the portion granted to the ANR is still relatively small. As before, the largest portion of the research funds is targeted at the financing of institutes and research establishments. In all, the research funds for the life sciences amounts to approximately 1.8 billion euro.
Table 2: Financial endowment of ANR
| Year | Budget of ANR in million euros |
| 2005 | 350 |
| 2006 | 650 |
| 2007 | 910 |
| 2010 | 1.500 |
Source: French ministry, Financial Plan 2006 (date: 2/2006)
Besides energy research, ANR funding is clearly oriented towards the bio and life sciences: 16 out of 24 advancement programs were set up in this area. Two of these have been created for the benefit of biotechnologists in general (RIB and EMPB). Furthermore, alongside the European-level Era-Net programs (Eurotransbio, Pathogenomics, Plant Genomics) there is an emphasis towards GMO-research, nutrition, neurociences, nano-technology, rare diseases, biophysics and biochemistry, and microbiology, as well as system biology. In principle, the ANR has set itself the goal of supporting both basic research and application-orientated projects in public/private partnership. Projects that work within the framework of the ‘Pôle de compétitivité’, receive additional financial support. Alongside the topic-specific funding programs, there are also general initiatives for the promotion of young scientists and the promotion of foreign guest researchers in France.
Industrial funding politics
Since 2005, the French government has also been looking to strengthen the promotion of industrial research. With this in mind, the Agence de l'Innovation Industrielle (AII) was created, which, together with existing programs and mechanisms (see chart), should push forward innovation in the private economy. It is aided by a budget of one billion euro. Alongside, the organization OSEO ensures for the support of small and medium-sized enterprises (SMEs). This is financed equally by the Economics, Research and Finance ministries, and is intended to make financial aid available for SMEs. In 2004, 21 million euro was allotted to pharma biotech companies.
Chart 1: French Innovation policy
Source: Agence de l'Innovation Industrielle (2/2006)
New laws projected: Pacte pour la Recherche
The establishment of the ANR and the AII are the forerunners of a new "Pacte pour la search" - a legal project, which, together with changes in the law, is intent on broad reorganization. To this end, in 2006 and 2007, approximately 4 per cent of additional financial funds will be put aside each year. Leading up to 2010, the budget is set to increase to 24 billion euro. In 2004 it amounted to 18.8 billion euro. Alongside the further development of the ANR and the AII, the establishment of an Agence d’évaluation de la Recherche is planned, which is to take over the evaluation of public funding measures. Moreover, it is intended to promote new forms of co-operation between public research establishments, with the ultimate aim of creating internationally visible large research centers (pôles de recherche et d'enseignement superrieur - PRES). Besides this, the founding of new companies by scientists is to be eased, requiring the dismantling of existing bureaucracy and the targeted promotion of young scientists. Apart from this the government is implementing the possibility of giving financial support to the building of a dozen thematic clusters (résaux thématiques de recherche avancées – RTRA). (konntest du noch nicht wissen – hab ich grad noch einfügt!)
With the aim of a strategic adjustment of the politics of innovation, a consulting committee made up of high-ranking scientists (Haut Conceil de la science et technologie) has been created, which will give direct advise to the President of the Republic. The bill has come into effect in april although many scientists criticize the draft, as it does not plan an actual increase in research expenditure, if inflation is taken into account. What is more, they see a threat to their jobs in the progressive project financing and an increase in limited positions.

