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France
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Sector spotlight
Languedoc-Roussillon
investment decisions
he global economic crisis has shrunk budgets and made financing trickier, but the French industry has been sheltered by various support mechanisms. Films are funded through tax revenues on ticket sales, redistributed by the National Center for
Cinema and Animation (CNC), which last year totaled 719 million. Television companies in France are obliged under the terms of their license to spend a percentage of their revenues on film. In 2011, pay-TV group Canal Plus and other channels spent 234.7 million on pre-purchase films. Additionally, the SOFICA system offers tax breaks to companies and high networth individuals financing films such as Ken Loachs Angels Share. The French system is more sheltered from the crisis than in other countries, says Patrick Lamassoure, Managing Director of Film France, which promotes France as a location for film and television shoots. There are more European producers looking at France as a possible source of income for their films. There are several mechanisms through which foreign filmmakers can seek funding, either through joint productions with their French counterparts, or as independent foreign films. The biggest financial pull for foreign filmmakers is Frances Tax Rebate for
International Productions (TRIP), enjoyed by Clint Eastwood (Hereafter), Kenneth Branagh (Thor), Jackie Chan (Chinese Zodiac) and Guy Ritchie (Sherlock Holmes 2), among others. Introduced in 2009, it offers a rebate of up to 20% of expenses incurred in France, up to a maximum of 4 million, for foreignproduced films wholly or partly shot in the country that incorporate elements of French culture, heritage and landscape. So far, 41 projects have benefited from the TRIP, including three animation films, accounting for a total outlay 170 million, of which 25 million was eligible for the rebate. When the global economic crisis came we had to remain competitive with Germany and England or Canada, says Jacques Bled, President of Paris-based animation studio Mac Guff. The TRIP tax rebate was a decisive factor in the renewal of the partnership with Universal. In 2011, Mac Guff was split into two companies, and the animation department was acquired by Universal Studios.
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PUBLISHED IN PARIS
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Sector spotlight
Q&A with Eric Garandeau, President of the National Center for Cinema and Animation (CNC)
What are the main reasons foreign filmmakers cite for choosing France? They come to France because we welcome them with open arms! They come because we have talent, and also because we have financial incentives. At the CNC, we have been working a long time to strengthen partnerships between France and foreign countries. We have 50 co-production agreements, which together with Canada makes France the most open country in the world. At Cannes this year, all the films awarded prizes were co-produced with France, very often with French money. I am always looking for new agreements recently with Armenia for example. And two years ago we signed an agreement with China that is very interesting: they want to find in France an alternative to Hollywood. A record number of films were made in France last year, almost one-third of them with foreign partners. In a time of economic crisis, what explains this increase? We have seen an increase in interest since the onset of the global economic crisis, which has led to difficulties for filmmakers everywhere to fund their projects. Here, TV companies are legally obliged to fund filmmaking with a certain percentage of their revenues. In the financial desert, France looks a little like an oasis for filmmakers. In recent years, France has sought to increase the financial incentives for foreign filmmakers to come to France, notably with the TRIP (Tax Rebate for International Production) and now World Cinema Support. How have these measures made a difference? The TRIP is something I worked on when I was advising former French President Nicolas Sarkozy. In 2009, we introduced this tax rebate, which covers up to 20% of film expenses incurred in France, to a maximum of 4 million. So far, 41 films have benefited, three of them animation films, from Martin Scorseses Hugo, to Woody Allens Midnight in Paris, and Illumination Entertainments Despicable Me. The BBC has been here filming TV series like Merlin and also Death in Paradise, which was shot in Guadeloupe. Two episodes of Gossip Girl were also made here. In all, these 41 projects spent 170 million in France, 25 million of which was eligible for the tax rebate. This year at Cannes we also announced the World Cinema Support, which replaces and extends the scope of previous systems: the FondsSud and the Foreign Language Film Support scheme, which in the past has helped people like Paolo Sorrentino and Michael Haneke. Up to 250,000 is available per film, and so far we have 160 applications from more than 50 countries. The commission will meet later in July and we will see what projects they approve. For foreign filmmakers coming to France, what kind of technical support is available? The CNC has a network of over 40 regional and local commissions which offer free services for producers to shoot in Frances regions. Some have more than one commission because they are popular places to film: there are eight for example in Provence-Alpes-Cote dAzur. They help finding locations, and staff. We have very skilled people in France, this is often the most important thing. Also, since this year we have the Cit du Cinma, a new complex near Paris that is Luc Bessons big idea. It has fantastic facilities including nine film studios, providing us with additional industrial strength. Before this we had the skilled technicians, the tax rebate, but now we can offer technical facilities like these, just like the English have with Pinewood Studios. Looking ahead to 2012 and beyond, how do you see the future of French cinema? French cinema is in a good place: we are the biggest market in Europe, and French people go to the cinema on average five times a year, which is very high. French people are also used to seeing films in all sorts of different languages, which makes us an important test bed for trying out foreign films. We also have fantastic technicians you know the Aaton camera made in Grenoble is the best in the world and great appreciation for our artists. you might say we are entering a new golden age in French filmmaking, but it is fragile. The economic climate is hurting, and we would like the European Commission to look kindly on cinema and audiovisual policies and schemes in EU member states. But with the foreign directors who want to come here to make movies and our friends abroad we will resist!
Interview
Stphane Reboud,
Head of Dell Montpellier, and Sales Director to French SMEs
Dell settled in Montpellier 20 years ago, but in 2000, the American computer manufacturer decided to make the city its headquarters for France and Southern Europe, helped by a range of financial incentives. Today, the company employs over 1,000 people and has a second office in Saint Denis, on the outskirts of Paris, which employs 500 people. We chose to settle in this region due to the regional policy to attract foreign companies, says Mr. Reboud. Montpellier and its surroundings is an attractive area, both to live in and do business, as it combines the advantages of a smaller provincial town, where it is easy to accomplish projects quickly, with the cultural and social advantages of a bigger conurbation, providing considerable business network opportunities. Montpellier is also a large student town, with many high-profile universities.
Frances research tax credit is a very good system and its something which is important to foreign investors.
didieR leCaille,
Director of IBM Montpellier
IBM has been in Montpellier since 1965 and is one of the largest private-sector employers in the region. We are geared towards missions with high value added, says Mr. Lecaille. IBM Montpellier is split into four divisions: a demonstration center for clients; a strategic IT outsourcing facility; tele-maintenance and a production center for integration solutions and computer refurbishing. Why Montpellier? We are lucky to have a site where the infrastructure is very adapted to our mission, both in terms of the building itself and the facilities. There is also its location: the airport, high-speed train station and motorway are all just a few minutes away. There is also a good selection of hotels for our clients. The Corum Conference Center is a useful resource for client events with more invitees than we can accommodate in our own facilities, as is the Exhibition Center. Given the local beauty and history, it is never difficult to persuade clients to come here. Frances innovation cluster policy has also been interesting for us, with two professional networks through the DERBI cluster for energy efficiency, and the EAU cluster for water management. IBM is delighted to participate in research projects with local universities and in partnership with other companies and local authorities.
philippe SiCaRd,
Administration and Finance Director for the EMEA zone at Sakata, a Japanese group that is a world leader in certain vegetable seeds, notably broccoli
Present in Languedoc-Roussillon since 1998, Sakata is building a 9 million factory extension and R&D center in Uchaud to pursue its growth in Europe, the Middle East and Africa. According to Mr. Sicard, the main reason for choosing this site was the climate, which is ideal for testing new strains to be planted in Mediterranean soils. In a small area, researchers can conduct tests in a range of climates, from drought to frost, in strong winds and heavy rain. We have the capacity here to develop more resistant and productive strains, he says. We are also close to many profitable markets. The area also benefits from a strong scientific tradition and skilled researchers. INRA, the number one agricultural institute in Europe and number two in the world, has a research center in Montpellier. CIRAD, a French research center working with developing countries to tackle international agricultural and development issues, has a regional office in Montpellier as well. The area is also close to The National Institute for Applied Sciences (INSA) in Lyon. The NRC Technopole in Nmes offers a wealth of experience in biotechnology and the agri-food business, while the Agropole foodprocessing industry science park is in nearby Agen. Another important factor is Frances research tax credit. The research tax credit really encouraged us to develop this R&D center here, says Mr. Sicard.
peteR neySSen,
CEO of Synergy Health France
British company Synergy Health is building the largest European facility for gamma-ray sterilization treatment in the region. The 12 million, 16,000 square meter plant in Marcoule, near Avignon, will be operational at the end of the year. The site, which the French Alternative Energies and Atomic Energy Commission (CEA) helped locate and find technical solutions for before a construction permit was granted in 2008, must be certified to the same standards as nuclear facilities. They helped us to pass through the very complex administrative procedures. It is important being near them and this center of expertise, says Mr. Neyssen. The project involves the construction of two distinct gamma irradiators with a total capacity of 7 MCi two to three times greater than the units currently in service in France. They will mostly serve the French market to sterilize medical devices and products for use in the pharmaceutical and microbiological industries. The French market is an important one, notes Mr. Neyssen. The sites location is significant as it lies at the meeting point of three major European routes: east to Italy, west to Spain, and north across the rest of the continent. It is also 130km (80 miles) from Marseille and Synergy Healths existing facility, with fast transport links to Frances largest port. Logistics is very important to us, says Mr. Neyssen. We need to be able to deliver sterilized goods to our clients in a timely, cost-effective and safe manner.
JaCqueS bouRhiS,
Director of Intel, Montpellier
Intel has invested in a team formed over the last 10 years in the Montpellier region through companies trading under the names of Palm, Palmsource, Smartcode and Access Systems. Access Systems, run by Mr. Bourhis, suffered economic difficulties in 2010 and Bourhis arranged for Intel to keep the team together. The team of 36 is due to grow to 45 by 2014. What interested Intel was that there was real expertise in the group from having worked on various projects in open source software, says Mr. Bourhis.
Clusters close up
In brief
French tax incentives scheme for video game developers approved by the EU
he European Commission has approved Frances tax incentives scheme for video developers. The deal has been officially extended, offering French developers a 20% tax rebate, subject to studios being able to prove that their projects are culturally relevant. The rebate will remain in place until December 31, 2017.
The essentials
Statistics
rance is the second largest recipient in Europe of internationally mobile physical investment from all over the world (40 different countries in 2011). There has been a 10-point increase in the number of positive opinions held by American investors about Frances investment attractiveness, according to the results of the annual survey published by the American Chamber of Commerce in France.
urosatory has a long history (est. 1967), and through continuous improvement we have ensured it is now recognized throughout the world. Located just outside Paris, it benefits from the attraction of Frances capital city and its infrastructure. More than just an exhibition, Eurosatory is a platform for international trade dedicated to all specialists in land and air defense and security. In 2012, 70% of exhibitors and 55% of visitors came from outside France. For one week, the entire supply chain can be found at the show, which is an opportunity to meet the Armed Forces and Security Services (end users), the industrial sector, and the 155 official delegations from 84 countries. Eurosatory is a great place for making deals, where we help exhibitors and visitors develop their BtoB. We enable everyone, from SMEs to the big groups, to be visible on the international
scene through different types of exhibition space, to link up with a technology cluster, to arrange business meetings and consult advisors on export strategy, and to be part of the official exhibition catalogue, which is distributed free and kept online for two years. Despite a difficult economic environment, Eurosatory once again pulled off a strong performance this year. The numbers speak for themselves: we went from 1,327 to 1,432 exhibitors, an increase of 8%. Visitor numbers were stable, but the proportion of overseas visitors increased by nine points from 46% to 55%. Furthermore, this year we met our objectives in terms of expanding our security offer, with 30% of exhibitors from this field. With over 370 new products presented at the exhibition, Eurosatory is the leading exhibition in the world for the number of product launches, witnessed by the 684 journalists covering the event.
In general, we can say that defense and security is a dynamic sector that does not seem too affected by the economic climate. New countries expanding their defense capabilities are compensating for the financial restrictions in Europe and the United States. France is an open country, with operators at all levels of the subcontracting chain. This complex market needs to be constantly open to new things. This is why France welcomes foreign companies to develop its offering and expertise. Foreign players help our subcontractors enrich and develop their products. France also has several professional groups such as GICAT (French Land Defense Manufacturers Association) that are open to all companies based on French soil. The Chambers of Commerce also provide great support to help companies settle in France. They gather together all the SMEs by region and know the local markets inside out.
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The Cvennes. In 1878, with his Travels with a Donkey in the Cvennes, Robert Louis Stevenson was already celebrating this regions potential for tourism, a pastime that was only just beginning to develop. Since that era, the Cvennes, a mountain range located to the south-east of the Massif Central and peppered with terraced olive groves and vineyards, has never ceased to attract fans of ecotourism. The area became a UNESCO World Heritage Site in 2011. www.cevennes-parcnational.fr
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Alastair Miller.
Born in England, Alastair Millers first career choice was as a navigator in the Merchant Navy. But after 3 years he became disillusioned and whilst wondering what to do next he picked up a camera and has been taking photos ever since. He photographed opera and classical music in London and later moved to Paris. He has spent many years in France, working for various magazines and newspapers, principally The Times and Sunday Times, and more recently in corporate and advertising photography. When not taking pictures he can be found listening to Wagner and feeding his chickens.
www.millerphoto.fr
Saint-Charles international is Europes largest distribution center for fruit and vegetables, distributing up to 1.5 tonnes of fruit and vegetables per year. Located at the crossroads of major transport corridors, it is a key center for international trade and multimodal logistics that receives local and Mediterranean produce for distribution throughout the continent. Saint-Charles International is also part of the Pyrnes Mditerrane multimodal platform, one of only 10 pan-European logistics platforms. www.saintcharlesinternational.com
Eric Legrand
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Agropolis International/ INRA.This research and training center in Montpellier is home to the worlds largest scientific community devoted to agriculture, food, biodiversity and the environment. It employs some 2,300 researchers and teaching staff spread over 80 cross-institutional research units. One of the areas of excellence of this scientific community is crop science research, which seeks to meet the challenge of feeding 9 billion human beings in the not-so-distant future. www.agropolis.fr www.montpellier.inra.fr/
LIRMM (Laboratoire dInformatique, de Robotique et de Microelectronique de Montpellier) is a cross-faculty research entity of the University of Montpellier 2 (UM2) and the National Center for Scientific Research (CNRS). LIRMMs research activities are focused on Computer Science, Robotics and Microelectronics and cover a broad range of skills in information science and technology, communication and systems. From information to systems, from technology to people and applications, LIRMM research activities revolve around modeling and designing various hardware and software systems (such as robots and integrated circuits), as well as research on algorithmics, bioinformatics, databases and artificial intelligence. Staff: more than 400. www.lirmm.fr
IBM. IBM set up operations in Montpellier in 1965. With its workforce of 1,000 employees, the global IT giant represents one of the citys five main business fields, along with medical research (Euromdecine), crop science (Agropolis International), audiovisual media (Antenna) and tourism (Hliopolis). The companys Montpellier site is devoted to technical innovation, server hosting (Europes largest green hosting facility) and customer demonstrations. www.ibm.com
Agropolis International/ The IRD. Through its site in Montpellier, a city with an outlook to the Mediterranean and the wider world, the National Institute for Development Research (IRD) fulfills its role of supporting the economic, social and cultural development of low-income countries. Located in a particularly dynamic and research-friendly region, the IRD plays host to numerous foreign researchers and students such as Mamai Wadaka (pictured, a student from Cameroon), establishing partnerships and promoting research locally. www.ird.fr
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The Canal du Midi, the oldest working canal in Europe, was constructed in the late 17th century to transport wheat from the Garonne (Toulouse region) to the Mediterranean at Ste (near Montpellier). Today, it is also a piece of cultural history listed as a UNESCO World Heritage Site since 1997, as well as being a prime location for tourism and leisure activities. However, it still plays a fundamental role in storing water for agricultural purposes and supplying drinking water (after treatment) to 185 municipalities.
Carcassonne. This imposing medieval city, the largest fortress in Europe, dominates the Aude valley. It is famous for its two 3,000 meter-long fortified walls and its 52 towers. Listed as a UNESCO World Heritage Site since 1997, this is one of Frances leading tourist spots, attracting around two million visitors every year.
Camargue, a natural region formed where the Rhne delta reaches the Mediterranean, is located in the Gard dpartement. It is reputed for its remarkable biodiversity and is used to breed bulls and to cultivate rice and salt. The Salins group is the second largest manufacturer of salt and sodium chloride in Europe, with a production capacity of 4.4 million tonnes. Camargues rice growers account for the majority of cereal output in France. Domestic output alone covers one-quarter of the French populations rice consumption needs.