Capitals and big cities across the European Union are trying to attract more startups as residents. It is not yet clear which city will emerge as the leading hub, but for now, we observe the potential for several centers to thrive across the continent.
Geography
Several districts (arrondissements) in Paris are particularly well-suited for IT companies:
- 2nd Arrondissement: Known as Silicon Sentier, it's a hub for tech startups and digital companies1.
- 9th Arrondissement: Increasingly popular for IT companies, blending historical charm with modern amenities and a vibrant startup scene; dubbed 'Silicon IX'.
- 13th Arrondissement: Home to Station F, offering a dynamic
Investment climate
The French government has made substantial investments in the tech sector, committing €30 billion through the France 2030 plan to foster high-tech champions and aiming for 100 unicorns by 2030, with 20 already established in Paris. The French Tech Ticket and Tech Visa programs have been introduced to attract international talent, streamlining the visa process for tech entrepreneurs and professionals.
Universities
The presence of prestigious universities and research institutes significantly contributes to Paris's tech landscape. The Paris-Saclay campus is particularly noteworthy, housing the highest concentration of researchers in Europe and accounting for a substantial portion of France's R&D output. This academic strength supports innovation across various sectors, including fintech, edtech, artificial intelligence (AI), advanced manufacturing, and biosciences.
Human Capital
Paris is the innovation center for France and houses world-class research universities, high-tech employment centers, and patent-intensive multinational companies. The Paris region possesses a highly educated population, which remains a critical asset for the area. Sectors employing high levels of professionals and university graduates accounted for most of the job growth in the region over the past decade. The Sophia Antipolis technology park in Paris has the highest concentration of technology engineers outside Silicon Valley. Major global technology players such as Accenture, Cisco, Intel, IBM, Air France, and Orange have established a presence in the park.
Key events
Paris boasts a robust network of support structures such as accelerators and incubators that facilitate collaboration among entrepreneurs. The city is known for its active community of technology professionals who engage in numerous networking events; as of 2019, there were over 1,100 technology-focused Meetup groups in Paris1. This collaborative environment fosters innovation and helps startups navigate the challenges of growth.
Accelerators and Incubators
Paris is recognized as a global innovation hub, attracting tech entrepreneurs and established companies. The Paris region hosts over 8,000 startups, including Station F, the world's largest startup campus.
In Conclusion
Despite these advantages, Paris lags behind its global peers on metrics such as patenting intensity, industry collaboration on scientific research, and venture capital attraction. Continuing to produce more high-skill workers and attract talent from both domestic and international sources will prove necessary to jumpstart growth and counter high unemployment.
