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47-556: Paris-Saclay is a research-intensive and business cluster currently under construction in the south of Paris, France. It encompasses research facilities, two French major universities with higher education institutions ( grandes écoles ) and also research centers of private companies. In 2013, the Technology Review put Paris-Saclay in the top 8 world research clusters. In 2014, it comprised almost 15% of French scientific research capacity. The earliest settlements are from

94-423: A formal association. Member organizations are often universities, businesses, and non-profit research institutes. Closely related concepts include research associations (in general), research parks , technology clusters , and economic clusters . RICs differ from generic research associations in that the member organizations must be geographically close to one another. RICs differ from research parks in that

141-690: A new product. If the development is technology driven, R&D is directed toward developing products to meet the unmet needs. In general, research and development activities are conducted by specialized units or centers belonging to a company, or can be out-sourced to a contract research organization, universities , or state agencies. In the context of commerce , "research and development" normally refers to future-oriented, longer-term activities in science or technology , using similar techniques to scientific research but directed toward desired outcomes and with broad forecasts of commercial yield. Statistics on organizations devoted to "R&D" may express

188-419: A research center of EDF , studied in 2010. Two thematic advanced research are also on the campus, with the creation of Digiteo and Triangle de la physique in 2006. SOLEIL , which creation was decided in 2000 after three years of opposition of Claude Allègre , was inaugurated the same year, built with a budget of 313 million euros. The project of neuroimaging center NeuroSpin is launched in 2006 also on

235-445: A way of amortizing the high overhead. They often reuse advanced manufacturing processes, expensive safety certifications, specialized embedded software, computer-aided design software, electronic designs and mechanical subsystems. Research from 2000 has shown that firms with a persistent R&D strategy outperform those with an irregular or no R&D investment program. Research and development are very difficult to manage, since

282-660: Is appealing to bidders because they could gain technologies from acquisition targets. Therefore, firms may gain R&;D profit that co-moves with takeover waves, causing risks to the company which engages in R&D activity. Global R&D management is the discipline of designing and leading R&D processes globally, across cultural and lingual settings, and the transfer of knowledge across international corporate networks. Former President Barack Obama requested $ 147.696 billion for research and development in FY 2012, 21% of which

329-810: Is called " R&D intensity ". A high technology company, such as a computer manufacturer, might spend 7% or a pharmaceutical companies such as Merck & Co. 14.1% or Novartis 15.1%. Anything over 15% is remarkable, and usually gains a reputation for being a high technology company such as engineering company Ericsson 24.9%, or biotech company Allergan , which tops the spending table with 43.4% investment. Such companies are often seen as credit risks because their spending ratios are so unusual. Generally such firms prosper only in markets whose customers have extreme high technology needs, like certain prescription drugs or special chemicals, scientific instruments , and safety-critical systems in medicine, aeronautics or military weapons . The extreme needs justify

376-405: Is crucial for acquiring larger shares of the market through new products. R&D&I represents R&D with innovation. New product design and development is often a crucial factor in the survival of a company. In a global industrial landscape that is changing fast, firms must continually revise their design and range of products. This is necessary as well due to the fierce competition and

423-483: Is followed by textiles (19%), digital (18%), and aerospace (15%). Other sectors allocate less than 10% of their total investment to R&D. While 17% of the world’s top R&D investors are based in the European Union, they accounted for only 1% of acquisitions involving EU-based companies between 2013 and 2023. In 2015, research and development constituted an average 2.2% of the global GDP according to

470-535: Is likely to end in 2022. The main part is the construction of the campus du plateau de Saclay . Several French national institutions settled on the plateau after the end of World War II. The CNRS is the first to settle there, headed by Frédéric Joliot-Curie , who bought the estate Button at Gif-sur-Yvette in 1946. The following year, the newly created CEA (the High Commissioner is also Joliot-Curie) to purchase land. The same year, ONERA settles on

517-586: Is located at Gif-sur-Yvette since 1946. The area has a dozen research units and service, and also 1,500 people. It should accommodate several components of the Paris-Saclay University (earth sciences, economics and management, law and sport) as part of the development in the 2010s, but also several facilities pooled projected by the campus operation (conference center, students and international doctoral students accommodation centers, home business, documentation, logistics). The area, located in

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564-641: Is lower than the EU average of 18%. In 2022, 67% of enterprises in the same region deployed at least one sophisticated digital technology, and 69% EU firms did the same. As of 2023, European enterprises account for 18% of the world's top 2 500 R&D corporations, but just 10% of new entrants, compared to 45% in the United States and 32% in China. As of 2024, the electronics sector leads in R&D investment, with 28% of its total investment dedicated to it. This

611-504: Is no requirement for research-intensity and all the member organizations share facilities in exactly the same location. Research and Development Although R&D activities may differ across businesses, the primary goal of an R&D department is to develop new products and services. R&D differs from the vast majority of corporate activities in that it is not intended to yield immediate profit, and generally carries greater risk and an uncertain return on investment . R&D

658-451: The Europe 2020 strategy which will run from 2014 to 2020, a multidisciplinary effort to provide safe, economically feasible, environmentally sound and socially acceptable solutions along the entire value chain of human activities. Firms that have embraced advanced digital technology devote a greater proportion of their investment efforts to R&D. Firms who engaged in digitisation during

705-725: The French Army , as well as 5,000 housing units for staff and their families. As part of the Paris-Saclay project, the EPA Paris-Saclay is being asked to support development operations undertaken by the Yvelines departement and Saint-Quentin-en-Yvelines . The rail corridor, which separates the latter in two, constitutes a reserve of space available for construction. The ESTACA Paris-Saclay institution moved to Saint-Quentin-en-Yvelines in 2015. Various extensions of

752-628: The Office of Chief Scientist In the 1980s to 1992, the Chief scientist of Israel significantly expanded R&D subsidies in the Israeli industrial sector. Israel invested in the creation of clusters of startups in the high-tech sector as well as venture capital investments. In 1993, Israel initiated the Yozma program , which led to the doubling of value of Israel's 10 new venture capital funds in 3 years. In

799-418: The Paris-Saclay University , such as: Institutions that have already moved on campus, such as: Along with other institutions already located in the cluster, these education institutions are to be merged in Paris-Saclay University , such as: This Paris-Saclay University was ranked 14th in the world in the 2020 ARWU ranking. The Polytechnic Institute of Paris , formed around the École Polytechnique ,

846-646: The Polytechnic Institute of Paris ( École Polytechnique , Telecom Paris , etc.). The Paris-Saclay University was ranked 15th in the world in the 2023 ARWU ranking. It was also placed 1st in the world for Mathematics and 9th in the world for Physics (1st in Europe). The goal was to strengthen the cluster to build an international scientific and technological hub that can compete with other high-technology business districts, such as Silicon Valley or Cambridge, MA . This project started in 2006 and

893-494: The Polytechnic Institute of Paris , has been located at Jouy-en-Josas since 1964. INRAE has 1,400 people in the area, and facilities for experimentation on livestock and microbiology . An extension of these activities provided for the arrival of more than 300 people in 2012, with the construction of Biosafety P3 facilities for virology . It includes the CEA 's Saclay Nuclear Research Centre , member of Paris-Saclay University ,

940-626: The UNESCO Institute for Statistics . By 2018, research and development constituted an average 1.79% of the global GDP according to the UNESCO Institute for Statistics . Countries agreed in 2015 to monitor their progress in raising research intensity (SDG 9.5.1), as well as researcher density (SDG 9.5.2), as part of their commitment to reaching the Sustainable Development Goals by 2030. However, this undertaking has not spurred an increase in reporting of data. On

987-490: The 1950s, and this area was subsequently extended several times during the 1970s and 2000s. Several projects are underway to continue the development of the campus, including the relocation of some facilities. The area is now home to many of the Europe's largest high-tech corporations , and to the two French universities Paris-Saclay University ( CentraleSupélec , ENS Paris-Saclay , Paris-Saclay Faculty of Science , etc.) and

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1034-737: The Orphée reactor and SOLEIL in Saint-Aubin . It includes Nokia in France (former Alcatel-Lucent ), in Nozay . The Satory site is located in the immediate vicinity of the Palace of Versailles , in the historic heart of the city. At the hinge between the Bièvre valley and Saint-Quentin-en-Yvelines , it is divided into two parts. The western part includes Army establishments and companies linked to

1081-512: The area, with its graduate schools CentraleSupélec and the École normale supérieure Paris-Saclay , its Faculty of Science , its Polytechnic University School and the Paris-Saclay University Institute of Technology. There should then be around 8,100 staff, 5,000 students for engineering schools and 8,000 students only in the university's faculty of science . The French National Centre for Scientific Research

1128-426: The area. At the beginning of the twenty-first century, research centers of private companies settled on the campus. In 2000, Danone chooses to establish a center for Research and Development in the area of Palaiseau , joined in 2006 by Thales laboratories, and in 2009 by Kraft Foods which invests €15 million to install one of its expertise global centers. Other projects removal were also studied, including

1175-681: The campus are part of several government operations. In February 2001, the Versailles Saint-Quentin-en-Yvelines University became a founding member of the scientific cooperation foundation foreshadowing the future campus on the Saclay plateau. In November 2011, the Mines ParisTech finally withdrew the project. Three administratives structures have been created for this project: The last institutions to move on campus are mainly schools from

1222-592: The campus were criticized by environmental movements in the early 1990s who accuse it of reducing the size of the agricultural areas. These criticisms are reformulated in the expansion projects of the 2000s. Some also criticize a project that promotes the Grandes Ecoles too much, especially with regard to the governance of the Campus. The Snesup ( Syndicat national de l'enseignement supérieur ) denounces "a project based on an elitist vision of higher education" and

1269-613: The case of the University of Paris-Sud and the École normale supérieure Paris-Saclay leaving towns in the Paris region, or in the case of grandes écoles leaving Paris. 48°42′36″N 2°10′09″E  /  48.71000°N 2.16917°E  / 48.71000; 2.16917 Research-intensive cluster Research-intensive clusters (RICs) are regions with a high density of research-oriented organizations. These regions may be informally designated, or may be represented by

1316-803: The city of Palaiseau , includes the main campus of the Polytechnic Institute of Paris , the second research university of Paris-Saclay, with the École Polytechnique , the ENSTA Paris , the ENSAE Paris , the Telecom Paris and Telecom SudParis . It also includes the ONERA and the Paris-Saclay University's Institut d'Optique Graduate School and AgroParisTech / INRAE in 2021. The IPSA aerospace College moved to Ivry-sur-Seine in 2009. HEC Paris , associate member of

1363-588: The defence sector, such as Nexter Systems and Renault Trucks Defense . It also brings together several players in the field of mobility, with the presence of IFSTTAR , a public transport research organisation, the Citroën Racing motor sports team and the Val d'Or circuit, which also includes test tracks. The eastern part is home to logistics and training units of the Gendarmerie Nationale and

1410-411: The defining feature of research is that the researchers do not know in advance exactly how to accomplish the desired result. As a result, "higher R&D spending does not guarantee more creativity, higher profit or a greater market share". Research is the most risky financing area because both the development of an invention and its successful realization carries uncertainty including the profitability of

1457-408: The evolving preferences of consumers. Without an R&D program, a firm must rely on strategic alliances , acquisitions , and networks to tap into the innovations of others. A system driven by marketing is one that puts the customer needs first, and produces goods that are known to sell. Market research is carried out, which establishes the needs of consumers and the potential niche market of

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1504-521: The exclusion of many institutions from the board of directors. The management project initiated by the "campus plan" has also been criticized by local politicians who criticize the state for being the sole leader of the project, or other project stakeholders who criticize the state of exercising too much intervention. The organization referred to as a business cluster is also criticized by the actors who doubt its effectiveness or fear that its development would be detrimental to other geographical areas, as in

1551-548: The first in 1976 in the Palaiseau area, the other in 1975 in the Moulon area. The project had a scheduled time to install other schools soon after. The Moulon farm which currently houses the genetics and plant breeding was restored in 1978. Institutions on the plateau at this time begin to join together in an association d'établissements scientifiques (association of scientific institutions, AES) to reflect future developments of

1598-445: The high risk of failure and consequently high gross margins from 60% to 90% of revenues. That is, gross profits will be as much as 90% of the sales cost, with manufacturing costing only 10% of the product price, because so many individual projects yield no exploitable product. Most industrial companies get 40% revenues only. On a technical level, high tech organizations explore ways to re-purpose and repackage advanced technologies as

1645-533: The installation of HEC in 1964 with its move to the town of Jouy-en-Josas , then with the arrival of the École supérieure d'optique in 1965 on the Orsay campus. Research centers related to private companies also settled at that time in 1968 with the arrival of the Central Research Laboratory of Thomson-CSF . In the 1970s, the École polytechnique and Supélec settled on the plateau,

1692-782: The invention. One way entrepreneurs can reduce these uncertainties is to buy the licence for a franchise, so that the know-how is already incorporated in the licence. In general, it has been found that there is a positive correlation between the research and development and firm productivity across all sectors, but that this positive correlation is much stronger in high-tech firms than in low-tech firms. In research done by Francesco Crespi and Cristiano Antonelli, high-tech firms were found to have "virtuous" Matthew effects while low-tech firms experienced "vicious" Matthew effects, meaning that high-tech firms were awarded subsidies on merit while low-tech firms most often were given subsidies based on name recognition, even if not put to good use. While

1739-555: The late 1990s, Israel was second only to the US in private equity as a share of the general economy. The high tech sector in Israel, known as Silicon Wadi , which earned Israel the nickname - Start-up Nation , was ranked the 4th leading startup ecosystem in the world by Startup genome with a value of $ 253billion in 2023. Europe is lagging behind in R&D investments from the past two decades. The target of 3% of gross domestic product (GDP)

1786-611: The member organizations are in separate locations within a geographical region, and are not sharing the same exact location. RICs differ from technology and economic clusters because they focus on more research rather than on economic development per se , though for-profit businesses may certainly be members of both types of groups. Other similar concepts include technology alliances and business parks . Technology alliances focus on economic development, often regardless of research-intensity or geographic density. Business parks provide infrastructure and facilities to businesses, but there

1833-478: The pandemic report spending a big portion of their expenditure in 2020 on software, data, IT infrastructure, and website operations. A 2021/2022 survey found that one in every seven enterprises in the Central, Eastern and South Eastern regions (14%) may be classed as active innovators — that is, firms that spent heavily in research and development and developed a new product, process, or service — however this figure

1880-548: The plateau in Palaiseau . The Saclay center was inaugurated in 1952. At the same time, higher education institutions settled nearby. The University of Paris is also up in the region in 1955 with the purchase of 50 hectares in the communes of Orsay and Bures . This Orsay campus brings laboratories of the Paris Faculty of Sciences (later the University of Paris-Sud ) and moved to 1956. Other institutions followed with

1927-551: The plateau. The first building constructed specifically for the campus is the Pôle commun de recherche en informatique (Joint Research Cluster Computing), which was inaugurated in November 2011. The proposed new construction and renovation of campus was launched by President Nicolas Sarkozy who wants to create a "French Silicon Valley ". The entire project is estimated to three billion euros funding. The different steps to set up

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1974-433: The state of an industry , the degree of competition or the lure of progress . Some common measures include: budgets , numbers of patents or on rates of peer-reviewed publications . Bank ratios are one of the best measures, because they are continuously maintained, public and reflect risk. In the United States, a typical ratio of research and development for an industrial company is about 3.5% of revenues; this measure

2021-490: The strength of the correlation between R&D spending and productivity in low-tech industries is less than in high-tech industries, studies have been done showing non-trivial carryover effects to other parts of the marketplace by low-tech R&D. Business R&D is risky for at least two reasons. The first source of risks comes from R&D nature, where R&D project could fail without residual values. The second source of risks comes from takeover risks, which means R&D

2068-477: Was destined to fund basic research. According to National Science Foundation in U.S., in 2015, R&D expenditures performed by federal government and local governments are 54 and 0.6 billions of dollars. The federal research and development budget for fiscal year 2020 was $ 156 billion, 41.4% of which was for the Department of Defense ( DOD ). DOD's total research, development, test, and evaluation budget

2115-475: Was meant to be reached by 2020, but the current amount is below this target. This also causes a digital divide among countries since only a few EU Member States have R&D spending. Research and innovation in Europe are financially supported by the programme Horizon 2020 , which is open to participation worldwide. A notable example is the European environmental research and innovation policy , based on

2162-704: Was ranked 61st internationally by the QS World University Rankings 2021, 93rd by the Times Higher Education World University Rankings 2020, and 2nd by the Times Higher Education Small University Rankings. The campus has currently three main areas: The area, located in the cities of Orsay and Gif-sur-Yvette , includes the main campus of Paris-Saclay University , which has 15,000 students in

2209-508: Was roughly $ 108.5 billion. Israel is the world leader in spending on R&D as a percentage of GDP as of 2022, spending 6.02%. According to CSIS, During the 1970s and 1980s Israel initially built up Israel's research infrastructure through various programs, often in the defence industry. In 1984, a law for Encouragement of Research and Development in Industry encouraged the commercial sector to invest in R&D in Israel as well as empowered

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