Pact SME

The is a novel mode of French operation between the international large companies and French SME that certain actors of the economy would wish to see adopting by the greatest number in France but also in Europe.

Objectives

To support the emergence of new international leaders

The objective of the Pacte SME is to increase the turnover of best innovating SME in order to facilitate the emergence of new companies of world stature.

France counts only 45 French companies in the world signal 1000, either 0,7 by million inhabitants, against 424 American or 1,4 per million inhabitants, and 207 Japanese women or 1,6 per million inhabitants. France thus needs approximately 50 large additional companies in the world signal 1000 to approach the average of these two countries.

A political will to assist SME

The represents a new policy targeted on SME at more strong potential with an aim of helping them to transform itself into new world leaders.

He is proposed with the large accounts, public or deprived, which are the potential customers. In 2007, only 19% of the French government contracts and 9% of the assistances to the companies profit directly with SME. The relation with innovating SME is complicated for large accounts (access to information, NIH, risk, cost of acquisition.). Pact SME seeks with helping there.

It aims in particular at setting up measurements making it possible at any SME to be able “to address” the European territory commercially as easily as North-American SME “addresses” the Nord-Américain market.

Overall, Pact SME aims to the reinforcement of the growth and employment.

To reproduce an operating process established in the United States

Pact SME positions like an equivalent modernized of the Small Business Act American , principal public device as regards support for SME set up into 1953 at the the United States.

The American position is illustrated by a declaration of President George W. Bush: " The owners of SME take risks and continue dreams, and consequently, create jobs for million our citoyens."

The Pact

Genesis

Pact SME was proposed by the Richelieu Committee in partnership with OSEO, the Ministère of the Economy, Finances and Industry and the Minister of education main road, of Higher education and Research. It is launched on September 8th 2005 under the sponsorship of Thierry Breton, then Minister for the Economy, Finances and Industry.

Finance law

Finance bill for 2007: Economic development and regulation

To comply with the rules framing the terms of payment.
Miser on “Pact SME” to reinforce the bond between SME and their large customers.

Decrees

The decree n°2006-975 of the 1 {{er}} bearing August 2006 on the Code des Marches Publics brings projections for SME in the Government contracts. This decree published in the " Officiel" newspaper; of August 4th 2006, came into effect on September 1st 2006. Its spirit is to support the access of SME to the public order. One can note in particular:

the making of the markets in separate batches (the Council of State validated on July 9th, 2007 this measurement of the decree favorable to SME). An allotment is required only if it does not present d'" technical, economic disadvantage and financer".
the absence of references to preceding markets of comparable nature does not constitute any more one eliminatory criterion.
the obligation for the public purchaser to measure and give an account of the placed orders to SME.
the possibility of asking the candidates to indicate in their offer the market share sub-contracted to thirds, and in particular to SME.
the possibility of a quantum of SME among the candidates admitted to present an offer when their number is limited by the public Acheteur, was cancelled on July 9th, 2007 by Council of State. This provision stipulated that the building owners, who pass the markets, could require that a minimal number of SME present an offer, within the framework of " procedure of appeal of offre" , procedure necessary for any government contract of an higher amount to 45.000 euros. This measurement at summer cancelled by the Council of State to the reason qu'" it revêt a discriminatory character which ignores the principle of equal access to the order publique".

Bill - STF

The Bill in favor of work, the employment and the purchasing power, presented in the Council of Ministers on June 20th, 2007, was adopted by the Parliament on August 1st, 2007, the National Assembly and the Senate having adopted the text developped at the point by the Joint industrial commission. The Constitutional council was received on August 2nd, 2007 of an filed appeal by more than 60 deputies.

The debtor will be able to charge to the Solidarity tax to fortune 75% of the payments carried out under subscriptions for the start-up capital or the capital growths of companies. He will be able to thus invest up to 50.000 euros of STF in SME or a holding of SME (known as holding STF). The members of Parliament half-opened the door of the banking intermediation with a lower reduction ratio: the taxpayers will be able to deduct 50% from their payment in the funds of investment of proximity (known as FIP STF), with a ceiling fixed at 10.000 euros. The conditions of investment in the companies of close relations are framed. The tax cut of 75% also aims the gifts at organizations of general interest, and was widened, in particular with the National agency of private research and the approved research organizations.

This flagship measure touches any taxpayer with the STF. A Entreprenarial Spirit should blow soon on all the debtors of the STF…

Promotion

The Richelieu Committee published in February 2007 one white paper detailing 7 stages allowing to transform Pact SME into a device supporting the emergence of new world leaders:

To widen Pact SME with other signatories (Bank public S, investors, laboratories,…),
To engage SME in triple engagement (to have a will of growth, to respect the others, to have a visibility on their situation),
To reinforce the contents of the Pact SME,
To imply the public authorities in Pact SME (devices of assistance, Poles of competitiveness,…),
To obtain an exemption of European SME of the field of the agreement on the government contracts of OMC,
To propose inciting mechanisms in order to decrease the risk to call upon SME (government aid with the R & D, guarantee funds, to help the grouped offers,…),
To identify an actor of reference.

Movements in Europe

Initiated in France, Pact SME is declined today in other European countries:

OSEO and the Richelieu Committee in France,
FSi in Norway,
OMFL in the Netherlands,
Torino Wireless in Italy aims at setting up a Plan SME .

Signatories of Pact SME

The large accounts signatories

Alcatel, Alstom, Arkema, Brucker Biospin, Bull, Capsugel (Pfizer), Commissariat à l'Energie Atomique (ECA), CNES, DCNS, General delegation for the Armament (DGA), EDF, Ericsson France, Holcim, French Petroleum Institute (IFP), Ingénico, Laboratories Pierre Fabre, La Poste, Lexmark International, Weather-France, MBDA, Microsoft (France), Ministry for the Economy, Finances and Industry, Ministry for the Interior, Ministry state education, Ministry for Transport, Equipment, Tourism and Sea, Norauto, the RATP, Renault, Rhodia, Rocket, Schlumberger, Schneider Electric, Siemens AG (France), the SNCF, Thalès, Total SA, General Electric.

Poles of competitiveness signatories

Embarked aeronautics, space and systems (Pyrenees Midday), Axelera (Chemistry-Environment, Rhône Alpes), Cancer Bio-Health (Pyrenees Midday), Cape DIGITAL (Ile de France), Images and Networks (Brittany), Innovations therapeutic (Alsace), Medicen Paris Area (Ile de France), Sea Brittany (Brittany), Minalogic (Micro Nanotechnologies and Software, Rhône Alpes), Photonic (Optics-Photonic, Provence-Alp-Coast of Azure) and System@tic (Ile de France), SCS, I-Trans, the pole Financial Industry Technologies and Innovation, Mov' eo, Sea PACA, the pole Industry and Agro Resources.

First results in 2006/2007

Concrete achievements

QoS Design was selected by Alcatel within the framework of Pact SME.
Publication of the Assessment of [[Pact SME] 1 year after ] (12/14/2006)
Publication of the management report 2006 ''' 2 years after ''' (4/5/2007). First data over 2006:

the 28 days of meetings organized through pact SME led to 73 contracts signed between SME and Large accounts,
the most important clients into 2006 were Thalès, MIAT, Schlumberger and DCN (from now on DCNS). Then Alcatel Lucent, Microsoft and the RATP come.
17,8% of the purchases measured over the year 2006 through the Pact was allotted at SME,
1072 SME signatories of Pact SME.

Procter & Gamble:

In 1999, Procter & Gamble decided to change its approach of the innovation. The company extended its R & D internal to the outside world by the means of an initiative called " Connect & Develop". This initiative stresses the need for P&G for approaching external partners to develop innovating ideas. P&G created a station of " Director of the Externes" Innovations; and at 50% its objective at 5 years for its level of the external subcontracting of the innovation put (it was of 10% in 2002). " Connect and Develop Complements Research and Develop At P&G, " Research-Technology Management 45, No 2 (2002): 38-45.

Merck:

The Merck company accounts for approximately 1% of the world expenditure carried out in the field of biomedical research. To have access to the 99% remainder, we must actively seek partnerships with the international level with other companies, allowing us to be able to use, within Merck, best technologies and products with existing potentials. The stacking of expertise and to know to make necessary in Biotechnology is by far too complex to be controlled by an isolated company. Merck & Co, Annual report (2000).

Advantages for the competitiveness of the Large accounts

Pact SME must make it possible the large companies to set up a policy of open Innovation. To finance all the R & D necessary for complete systems is not any more topicality for a large account alone. The actors of the innovation multiplied.

As comparison with the the United States which have Small Business Act:

the share of R & D carried out in the American start-ups passed from 4,4% to 22,5% in 20 years,
the share of American patents obtained by SME also increased by 5% in 1970 with more than 20% in 1992.

The reinforcement of the bond between innovating SME and the large accounts is thus crucial for the competitiveness of the latter.

Testimonys

Jean-Louis Fages (A2iA): “The large companies must trust us” (10/21/2005)
Témoignages of the companies A2iA, Active Circle, Smart Quantum, Evitech, Optis, Vitec Multimédia (9/8/2005)

Role of the political powers

A call to the candidates with the French presidential election of 2007 was launched at the month of February 2007. Certain candidates indicated their support for. Alphabetically, Francois Bayrou, Ségolène Royal and Nicolas Sarkozy is of these candidates.

Agreement OMC

The European Union signed in 1996 the Agreement on Government contracts (AMP) of OMC, which prohibits any device réservataire. The United States, also signatories, obtained to be able to exclude American SME from the field of this agreement (measurements similar in Canada and in South Korea). The AMP is in the course of renegotiation, which would then make possible the installation of Small Business Act to Europe and Africa (for the States signatories).

But all the European countries do not support this initiative, the United Kingdom, Denmark, Spain, Estonia and Finland.

Since the month of July 2006, France, through the action of Christine Lagarde, minister delegated to the Foreign trade, engaged a step of lobbying aiming at sensitizing the members of Parliament and the European commission with the launching of a policy in favor of the privileged access of SME to the public order.

European Council June 21st and 23rd 2007: President Nicolas Sarkozy seems to have made move the spirits on Small Business Act (SBA) with the Frenchwoman. President Nicolas Sarkozy indicated that " The “Small Act Business”, within the framework of OMC, the United States have an exemption, it does not have there no reason which Europe has one, that is called more the reciprocity neither nor less. It is not aggressive to say cela" , he added.

The next stage could be September when Europe could require an exemption from the World Trade Organization (WTO) within the framework of the renegotiation of the Agreement on government contracts (AMP). It will be necessary in particular to be appropriate of the methods of such a preferential mode claimed by France.

See too

Small and medium-size companies

External bonds

Pact SME, to support the emergence of the champions of tomorrow
Richelieu Committee, the French association of SME of High technology
OSEO, to finance and accompany SME
Platform by the Councils to the Export of the Post office
the gate of the government contracts for SME
List of the articles in the press on the " '' Pacte SME '' " and the " '' Small Business Act '' "
U.S. Small Business Administration
operational Guide for the response of SME to the government contracts

Dependant documents

Report management 2006 (published on April 5th, 2007)
Report/ratio Deloitte Agefi: The " '' Small Business Act '' " and the access to the markets (Source: Deloitte Finances, February 2006)
Rapport Capintech: The model of the " '' Small Business Act '' " is American importable in Europe? (9/30/2003)
free 25 cours on line proposed by the U.S. Small Business Administration to help the possible contractors with better including/understanding the environment of SME (creation, development, financing, marketing, contracts, cyber safety, E-trade, foreign trade,…). This very interesting tool seems yet to exist neither in France, nor in Europe.

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