Survey on the Attractiveness of France (2019) Main results January - - PowerPoint PPT Presentation

Survey on the Attractiveness of France (2019)

Main results January 14, 2020

Field dates Collection method

Reminder of the methodology

Sample OBJECTIVES

Sounding board / invest: 573 foreign opinion leaders (senior executives) split as follows: 101 in Germany 100 in the United Kingdom 100 in the United States 100 in India 100 in China 72 in the United Arab Emirates The weighting given to the United Arab Emirates was brought to 100, like other countries, in order to have the same weight when calculating the sounding board. Mirror image: 189 senior executives of foreign businesses set up in France ◼ The fields took place on the following dates:

• Germany: October 31, 2019 –

November 8, 2019

• United Kingdom: October 25, 2019 –

November 7, 2019

• United States: October 25, 2019 –

November 7, 2019

• India: October 25, 2019 – November 7,

2019

• China: October 31, 2019 – November 8,

2019

• United Arab Emirates: November 11,

2019 – December 18, 2019 ◼ Field: October 24, 2019 to November 27, 2019 ◼ Online, except in the United Arab Emirates, where the fieldwork was conducted by telephone. ◼ By telephone

3

Results are indicated in %, except where indicated otherwise. * : Low base: results to be interpreted with prudence : Significant positive/negative evolution since previous report

Note for the reader

↘ ↗

To be noted for China and India: We have noticed a constant bias in our studies in these countries, for cultural reasons, with extremely positive answers to our surveys. Therefore we have decided, where possible, to propose scales in four terms, and to only retain for presentation the most positive term, so as to manage this bias and offer a more relevant comparison with other countries on the spectrum. In this report, when the sum of percentages is not equal to 100%, this can be explained:

• Either when interviewees provide several answers (in which case, the sum of percentages is over 100).
• Either when the figures are rounded.

Rounded figures can also be explained as there can sometimes be a difference of +/-1 point between a sub-total and the sum of items that makes it up.

1

France’s attractiveness resisted, remaining at a high level

4

44 46 43 12 10 39 3 3 1 87 58 13 42

74 84 88 87

2016 2017 2018 2019

Change in % “attractive”

France’s attractiveness stabilized at a high level: 87% of senior executives based abroad considered France to be attractive, up 13 percentage points from 2016. Conversely, with executives of foreign businesses set up in France, after the strong increase seen in 2018, France’s attractiveness fell this year to its 2017 level.

5 Q3 – Base: Sounding board – All (573) / Mirror image (189)

%

* For India and China, % “Completely attractive” (cf. note for the reader)

Not at all Rather not Rather Completely No answer

Mirror image

In all, would you say that France is an attractive destination for foreign investment? “Attractive” sub-total “Not attractive” sub-total

Sounding board Mirror image 77 73 53 39 45 44 56 66 58 2010 2011 2012 2013 2014 2016 2017 2018 2019

Sounding board

12 70 16 12

6

Positive sub-total: 82%

%

Very positive

More than eight out of 10 foreign businesses set up in France drew a positive conclusion from their establishment.

Rather positive Rather negative No answer

B5 – Base: Mirror image – All (189)

Negative sub-total: 17% Would you say that the directors of your businesses draw a very positive, rather positive, rather negative or very negative conclusion of their investment in France?

Very negative

85 82 73 72 62 83 83 78 82 20 9 9 8 7 16 16 10 12 15 15 21 28 32 12 16 18 16

2010 2011 2012 2013 2014 2106 2017 2018 2019

44 38 30 9 9 9 8 6 5 5 5

Allemagne France Royaume-Uni Italie Pays-Bas Espagne Irlande Suède Pologne République Tchèque Autriche

Germany remained the leading destination of foreign investment, followed by France, whose attractiveness continued to strengthen. France widened the gap with the United Kingdom (eight points difference in 2019, versus one point in 2018). These three countries continued to be well ahead of other countries.

7

Base: Sounding board – All (573) Q1: If we were to give you a European country in which it is interesting for foreign businesses to invest, which country would you think about first? (Two responses possible)

% FR UK SW GE IT SP NE CZ IR PO EUROPEAN COUNTRIES JUDGED TO BE THE MOST ATTRACTIVE AU



Germany France United Kingdom Italy Netherlands Spain Ireland Sweden Poland Czech Republic Austria

2

Maintaining this strong attractiveness also concerns French industry

8

43 46 39 35 15 15 4 4 81 81 19 19

9

IN1 / F5 – Base: All – Sounding board (573)

%

Sub-total “Yes” Sub-total “No”

No, not at all No, not really Yes, quite so Yes, completely No answer

French industry also remained very attractive with senior executives abroad, who consider that the French ecosystem encourages industry.

Do you believe that French industrial sectors are attractive? Do you think that the French ecosystem encourages industry?

Not at all Hardly at all Quite a bit Completely No answer

50 53 47 44 44 43 44 36 33 38 40 40 39 36 13 13 13 13 15 17 18 2 1 2 2 1 2 1 86 85 85 84 84 82 80 14 15 15 15 16 18 20

Automatisation de l'outil de production Digitalisation des process industriels Qualité des salariés Montée en gamme des produits Qualité du management Promotion des savoir-faire français Partenariats avec des start-ups innovantes

Don’t know Not at all well Not very well Quite well Very well

Attractiveness which feeds off the quality of performance is recognized on all dimensions tested.

10

Base: IN2 – Base: All – Sounding board (573)

%

Sub-total not well Sub-total well

Do you believe that French industries perform well on the following points?

Automatization of production tools Digitalization of industrial processes Quality of employees Upgrade in the quality of products offered Quality of management Promotion of French expertise Partnerships with innovative startups

3

In a competitive environment, France seems to be taking advantage

• f the decline in attractiveness of the United Kingdom in terms of

stability, buoyancy and business attractiveness…

11

Base: Sounding board – All (573) Q6, Q7, Q8 Are you completely, rather, rather not or not at all in agreement with the following suggestions concerning France, Germany and the United Kingdom?

While perceived economic stability in France declined a little (down four percentage points), perceptions of the legal and fiscal environment stabilized at a high level, in contrast with the increase in perceived instability in the British legal and fiscal environment.

12

Sub-total “agree” Sub-total “agree” Sub-total “agree” %

Concerning

France

Concerning the

United Kingdom

Concerning

Germany Economically stable Stable legal and fiscal business environment Legal and fiscal business environment easy to understand STABILITY

Mostly agree Completely agree 38 38 34 48 45 45 86 84 79 49 42 45 47 94 89 39 40 38 39 77 79

Item not asked in the United Kingdom Item not asked in Germany

Looks to attract foreign investors Looking to the future, which is investing for its future Engaged in reforms to modernize its economy Innovative

13

Sub-total “agree” Sub-total “agree” Sub-total “agree” %

Item not asked Item not asked Base: Sounding board – All (573) Q6, Q7, Q8 Are you completely, rather, rather not or not at all in agreement with the following suggestions concerning France, Germany and the United Kingdom?

Concerning

Germany

Item not asked Item not asked

Concerning

France

Concerning the

United Kingdom

The same can be said for France’s buoyancy: the stabilization of perceptions was confirmed at a high level (but below Germany), while the United Kingdom recorded a net decline on looking towards its future and being innovative.

BUOYANCY, VOLUNTARISM

Mostly agree Completely agree 43 46 42 45 43 40 43 39 86 86 85 83 56 56 37 36 93 92 44 47 37 38 81 85

45 46 44 44 44 46 90 90 90

14

Sub-total “agree” Sub-total “agree” Sub-total “agree” %

Item not asked Item not asked Base: Sounding board – All (573) Q6, Q7, Q8 Are you completely, rather, rather not or not at all in agreement with the following suggestions concerning France, Germany and the United Kingdom?

Concerning

Germany

Concerning

France

Concerning the

United Kingdom

France is now an equal match for the United Kingdom in terms of business attractiveness, even if it remained a little way back from Germany.

Which encourages entrepreneurship and startups Which offers a good return on investment Where it’s easy to do business Where you must invest

BUSINESS

Mostly agree Completely agree 35 32 37 38 48 49 43 42 83 81 80 79 39 40 40 43 43 40 82 82 80

15

Sub-total “agree” Sub-total “agree” Sub-total “agree”

%

Base: Sounding board – All (573) Q6, Q7, Q8 Are you completely, rather, rather not or not at all in agreement with the following suggestions concerning France, Germany and the United Kingdom?

↗ ↗ ↗ ↗ ↗

Which possesses real expertise in various sectors Attractive for foreign investment The French/German/British are keen

• n new technology

France/Germany/United Kingdom is a country which seeks to attract foreign talent

Concerning

Germany

Concerning the

United Kingdom

France confirmed its attractiveness for international investment by staying in front of the United Kingdom and behind Germany on this dimension. Novelty: France shows more than the United Kingdom its desire to attract foreign talent.

Concerning

France

Mostly agree Completely agree

EXPERTISE, ATTRACTIVENESS

42 43 37 40 45 44 46 42 87 87 82 82 55 52 59 50 35 40 35 41 90 91 94 91 50 46 46 38 37 35 39 41 87 80 84 78

4

… but also the work to promote France by public authorities and measures taken to promote the attractiveness of its economy

16

53 47 26 15 18 34 2 4 80 62 20 38

Ne sait pas Pas du tout Peu Assez Beaucoup

ST "Font des efforts" ST "Ne font pas d'efforts"

The efforts by the public authorities to promote the economic attractiveness of France are largely well- known: eight out of 10 senior foreign executives are aware of them, a stable level since 2018.

17 Q9 – Base: Sounding board – All (573) / Mirror image (189)

%

* For India and China, % “Lots of effort” (cf. note for the reader) In 2015: question not asked to mirror image

In your opinion, are the French public authorities making lots, quite a lot, a little,

• r no effort at all to promote France’s economic attractiveness?

Sounding board Mirror image 35 49 22 29 55 77 80 73 45 39 48 58 60 72 66 75 42 41 56 39 30 56 55 66 72 22 35 31 31 44 42 42 53 60 40 23 25 18 28 26 36 44 37 67 96 90 65

2010 2011 2012 2013 2014 2016 2017 2018 2019

% "Font des efforts" *

India China USA UK UAE Ger.

64 53 27 30 26 36 56 58 62

2010 2011 2012 2013 2014 2016 2017 2018 2019

% “making lots of effort” None at all A little Quite a lot Lots of effort Don’t know

Sub-title “Aren’t making an effort” Sub-title “Are making an effort”

Mirror image

The extent to which most of the reforms to improve France’s attractiveness are well-known remains high, even though knowledge of the extent to which measures introduced to attract new talent to France and to improve flexibility of work has gone down a little (down five points)

18 A9 – Base: Sounding board – All (573)

No Yes but I can’t see what it’s about Yes and I see what it’s about %

Sub-total yes

Welcome to France Support for innovation Lowering taxation on businesses Measures taken in favor of innovation Measures taken to introduce new talent to France Measures taken to improve flexibility of work Make our planet great again Transformation of the competitiveness and employment tax credit (CICE) into lower social security contributions “Skills and Expertise” residence permit French Tech Ticket or French Tech Bursary

** New item in 2019

** ** ** ** **

Have you heard about the following reforms?

32 31 34 31 28 27 27 30 27 31 45 46 43 45 45 45 44 41 42 35 23 23 23 24 27 28 29 30 31 34 77 77 77 76 73 73 71 70 69 66

 

Strong consensus about the relevance of brands to enhance French expertise abroad

19

%

Do you think that the […] is a relevant initiative to promote […] expertise internationally?

French Tech ➔ French expertise

F3B / F5C / F6C – Base: Those you have heard “La French Tech” being talked about (n=407) / “La French Fab” being talked about (n=334) / French Healthcare being talked about (n=442)

52 46 44 43 47 47 4 6 7 1 1 2 95 93 91 5 7 9

Sub-total relevant Sub-total not relevant

Not at all A little Quite Completely No answer

French Fab ➔ French industry expertise French Healthcare ➔ French healthcare expertise

Ultimately, the perception that in France there is an ecosystem that encourages innovation, industry and the healthcare sector.

20

48 46 44 37 35 37 15 15 16 1 4 3 84 81 81 16 19 19

Innovation Industry Healthcare sector

%

Do you think that the French ecosystem encourages […] ?

F1 / F5 / F6 – Base: Sounding board - All (573)

Sub-total yes Sub-total no

Not at all A little Quite a lot A lot No answer

5

Brexit: a windfall effect yet to be confirmed?

21

22

The impact of Brexit on expansion strategy by businesses is getting clearer: two-thirds of senior executives anticipate a revision of expansion strategy in favor of another European country

BR4 – Base: Sounding board – All (573) / Mirror image without a boost (89*)

Sounding board Mirror image

* : Low base: results to be interpreted with prudence

With Brexit, businesses from your country will review their expansion strategy in the United Kingdom in favor of another European country Brexit will not change anything with the expansion strategy of businesses of your country in the United Kingdom: they will continue to be as present as they are now

%

Which statement below is closer to your opinion?

64 49 36 51

23

Base: Sounding board – Do you believe that businesses will review their expansion strategy following Brexit (385) BR5 In which other European countries will businesses prioritize investing, in your view?

%

COUNTRIES TOWARDS WHICH BUSINESSES WOULD RETURN THE MOST OFTEN

While Germany remains considered as the country in Europe having the most to win from Brexit, the gap with France is reducing significantly (five-point gap today, versus nine points in 2017 and 18 points in 2016)

FR GE PO IT SP BE IR AU GR NE SW LU

45 40 12 12 10 6 6 5 4 4 3 3 3

Allemagne France Italie Pays-Bas Espagne Belgique Irlande Suède Autriche Grèce Pologne Luxembourg République Tchèque CZ

Germany France Italy Netherlands Spain Belgium Ireland Sweden Austria Greece Poland Luxembourg Czech Republic

24

BR6 – Base: All – Sounding board (573)

For a majority of senior executives, the economic agreements with Japan and Canada will have a positive impact on investments in France by businesses from their country, whereas Brexit and trade tension between China and the Unite States will have a negative impact

% Negative impact Positive impact No impact

More largely, what impact will the following events have on investments in France by businesses from your country?

22 24 21 21 18 18 43 45 59 58 35 34

L'accord de partenariat économique UE-Japon Le CETA, l'accord de libre-échange entre l'Union européenne et le Canada Le Brexit Les tensions commerciales sino-américaines

New question 2019

The European Union – Japan Economic Partnership Agreement The Comprehensive Economic and Trade Agreement between the EU and Canada Brexit Trade tension between China and the United States

25

BR2 – Base: All – Sounding board (573)

Even if it remains in the minority, the share of foreign senior executives who anticipate a negative impact

• f Brexit on the French ecosystem is increasing.

%

What impact will there be in your opinion from the exit of the United Kingdom from the European Union (Brexit) on…

Negative impact Positive impact No impact

20 18 19 18 30 34 34 36 51 48 48 47

Les banques françaises Les grandes entreprises françaises Les PME françaises Les filiales françaises d'entreprises étrangères

French banks Major French businesses French SMEs French subsidiaries of foreign businesses 47 48 48 18 36 34 34 18

26

Kantar, Public Division France | 3, avenue Pierre Masse, 75014 Paris | +33 1 40 92 46 60 | www.fr.kantar.com | www.kantarpublic.com

Emmanuel Riviere Emmanuel.riviere@kantar.com +33 1 40 92 46 30

Kantar contacts

Fabienne Cadenat fabienne.cadenat@kantar.com +33 1 40 92 31 17 Eddy Vautrin-Dumaine eddy.vautrin-dumaine@kantar.com +33 1 40 92 44 89