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Paris is the new European innovation capital

Paris the European innovation capital: I spent a long weekend in Paris to follow the two NBA games between the Indiana Pacers and San Antonio Spurs. Two sold-out were recorded at the Accor Arena in Bercy, with fans coming from over 50 countries to follow their sporting favourites. In Paris, sport has become a decisive factor, especially after last summer’s Olympics which increased the appeal of the city, one of the world capitals of art, history, fashion and food. To this already long list, another record must be added, as the Ville Lumiere has become one of Europe’s main innovation hubs. It is no coincidence that throughout the year, there are so many initiatives and projects, including fairs, conferences and other events dedicated to technological evolution.

This achievement did not come about by chance but was the result of work that began over a decade ago involving industry, the third sector, city administration, and the French government. The objective was to create a French innovation ecosystem that could act as a driving force for Europe in response to American dominance and the impetuous growth of China. A mission accomplished because the numbers prove it.

An ever-growing ecosystem

Looking at the report on the French tech ecosystem in 2024 by Alexandre Dewez, partner at 20VC, it turns out that in the year in which the European ecosystem saw a 7% drop in the amount of funding raised, the money obtained by French start-ups grew by 3% compared to 2023. The total figure exceeds €7 billion, poured into the coffers of French companies in 518 funding rounds. It should be noted that 36% of the money raised came from US investors, demonstrating the global attention paid to the French ecosystem and, therefore, the consequent privileged position of France compared to other European countries. In this sense, it should be considered that even the main British funds are focusing on French start-ups, as Accel, Balderton, and Innex have entered into several partnerships with young companies founded in the country of the Enlightenment.

Paris the European innovation capital

The blossoming of ideas and start-ups with the potential to innovate processes and services is a consequence of a favourable scenario in which several players have prepared the ground to support innovation. These range from the €30 billion plan announced in 2021 by Emmanuel Macron to support France’s industrial recovery and innovation to the hype created by events such as Viva Tech, Europe’s largest event dedicated to start-ups that facilitate the contamination of ideas and meetings between venture capitalists and startuppers. We should also not forget that Paris is the home of Station F, a campus that has no equal in the Old Continent (I visited it in 2017, a few months after its opening), as it is able to host hundreds of start-ups, dozens of programmes, hundreds of calls and events that help the growth of young companies made in France.

Why France is European excellence

There are more than a thousand AI start-ups in France, but more than 50% are located in Paris the innovation capital, which is obviously not by chance, considering that the cost of living in the capital is much higher than anywhere else in the country. Among the reasons why the city has emerged as a hub for innovation are the many top-notch engineering and business schools (ENS, ENSTA, HEC, ESSEC), which train talent ready to grow the national ecosystem.

A key factor is the importance of research, both in the public and private sectors, as 2.24% of GDP is allocated to support research and development. Government support is also important, with many tax breaks for companies that hire engineers and researchers. In addition, there are several billion euros of AI funding in the 2030 business plan.

A pre-eminent factor in triggering the sector’s growth is the presence in France, almost always in Paris, of the headquarters and laboratories of big tech companies such as Meta Google and OpenAI. In such a context, competition is very high and French companies that manage to establish themselves have the potential to play a leading role in the field of innovation; the proof lies in realities such as Mistral AI, Sorare, Deezer, BlaBlaCar and the other 25 unicorns founded in the country.

If there is one thing I have learnt from visiting Paris many times, it is the strong will with which the French pursue their goals in a united manner and help each other. If all countries had a vision based on collaboration, the world would be a better place.

Alessio Caprodossi is a technology, sports, and lifestyle journalist. He navigates between three areas of expertise, telling stories, experiences, and innovations to understand how the world is shifting. You can follow him on Twitter (@alecap23) and Instagram (Alessio Caprodossi) to report projects and initiatives on startups, sustainability, digital nomads, and web3.