International Innovation Investments Announced in France, Russia, China

France

President Jacques Chirac announced last month plans to invest nearly 600 million euros ($758.6 million US) into five high-tech government-industry projects. The projects center on making France a European leader in innovation, as well as restoring national pride, which is currently low, according to Global Insight. The five initial projects were selected by France's Agency for Industrial Innovation (AII), which was launched last year with an investment budget of 2 billion euros ($2.5 billion US). Following is a description of each project and funding levels:

• Quaero - This is a Franco-German project to create a search engine comparable to Google and Yahoo! The total project investment is 250 million euros. France will invest 90 million euros with a project duration of five years.
• BioHub - The state will invest 43 million euros in a "bio-refinery" that can use starch to create plastics and food additives. Total project funding is 98 million euros for a total of six years.
• NeoVal - The successor to Val, the automatic metro, NeoVal will use an energy-storing technology allowing the train to recharge itself at every station. The total investment is 62 million euros, with the state contributing 26 million euros over five years.
• Unlimited Mobile TV (TVMSL) - The state will invest 38 million euros for a total 98 million euros to create satellite and mobile phone technology that allows TV viewing from a mobile phone. The project duration is four years.
• HOMES - This is an initiative from Schneider Electric for energy-efficient buildings, including sensors in the walls to regulate heat, light and ventilation. The total project cost is 88 million euros. The state will invest 39 million euros for a five-year project duration.

A sixth yet-to-be-funded project is already underway by the French car maker PSA Peugeot. The company is creating hybrid diesel vehicles that average 82 miles per gallon. According to the Financial Times, the project will be presented to AII sometime this month.

Russia

Economic Development and Trade Minister, German Gref, announced plans to invest up to $500 million (US) into a new Venture Fund next year. The initiative is set up as a "fund-of-funds," with the federal government and private partners investing in venture capital funds on a 50-50 basis, the Moscow Times reports. According to Prime-Tass, the fund is expected to contribute to the creation and development of venture investment companies, and it is the third major fund set up by the Russian government.

The fund is aimed at encouraging venture investment and a strategy is being drafted to foster the development of venture infrastructure in 2006-08, according to the Moscow Times. Gref also announced plans to create five technology parks across Russia next year to help businesses become established and profitable during their start-up phase.

China

The Ministry of Science and Technology announced plans to build 30 new science and technology parks by 2010. The goal is to increase technology commercialization from China's research universities. According to the Science and Development Network, the parks serve as incubators for small and medium-sized high-tech companies, many of which are set up by the universities or students. The move will bring the total number of parks to 80.

The parks will be privy to number of tax breaks beginning this year following policies announced in February by the State Council. The Science and Development Network reports that in February, the State Council announced a strategy to increase annual investment in R&D to 900 billion Yuan ($112 billion US) by 2020. One of the strategies consists of tax breaks to encourage private investment R&D.