R&D Tax Credits: Turning Science into Startups

France's Research Tax Credit (CIR) predated the startup boom, but founders learned to leverage it brilliantly. Offering 30% credit on R&D expenses up to €100 million, the CIR made France one of the most attractive places globally for R&D-intensive startups.

Deep tech startups particularly benefited. Companies like Shift Technology (AI for insurance) and Therapixel (medical imaging AI) built world-class research teams knowing the effective cost was 30% lower than competitors in other countries.

The Young Innovative Company (JEI) status provided additional benefits—reduced social charges and tax exemptions for qualifying startups. Combined with the CIR, these programs made early-stage R&D remarkably affordable.

Critics argued these programs were complex and favored larger companies. In response, the government simplified applications and created dedicated support teams for startups. By 2024, over 5,000 startups benefited from these programs annually.