Distributed by the Documentation française (in French).

This study aims at providing accurate answers to questions about the French policy on venture capital (VC) support. First of all, the typically entrepreneurial being of this industry involves questioning its legitimacy. Why does the government support the venture capital activity? Policy makers aim at creating a conductive framework for innovation, especially in high tech sectors. In France, like in other European countries, policy makers want to reduce handicaps vis-à-vis the United States.

What are the main features of this public support? Priority has been given to fiscal and regulatory means to build up a conductive framework, without resorting to a public funds large use. A public organisation, the Caisse des dépôts et consignations (CDC), has played a key role as a catalyst. How successful has this policy been? How does venture capital perform in France compared to other European countries? Evidence from statistical data is mitigated. Is it necessary to introduce pension funds in order to improve VC activity? The answer is clear-cut: it would have a minor impact. More generally speaking, among the many components of the U.S. model, which are the ones that should be implemented for the emergence of VC? Non-financial factors, favorable to innovation and high tech start-ups, are more important than financial ones because of the international currency circulation. Finally, what are the key factors of VC dynamics from the supply side? Actors' expertise is a decisive factor, as the correlation between VC activity and financial market is also highly important. Consequently, the initial public offering (IPO) of VC backed firms regulation should be tightened.