Grenoble-Isère’s unique culture of close cooperation among industry, research, and higher education inspired France’s competitive cluster model. And, as France’s leading hub for R&D partnerships between industry and higher education, Grenoble-Isère is leading the trend towards open innovation, a powerful approach that can take new ideas from the lab to the marketplace both quickly and cost-effectively – crucial in today’s sluggish economy.

Grenoble-Isère is often compared to Silicon Valley. While the analogy is flattering, it fails to reflect the diversity of the local economy. Home to 469,000 jobs in 2011, Grenoble-Isère boasts a young population (33% of residents are under 25) and a highly-qualified workforce, with one of France’s highest concentrations of engineers (9%). High-tech industries like microelectronics, nanotechnology, software, embedded systems, chemicals, healthcare, and renewable energy play a key role in the Grenoble-Isère economy, while traditional industries like food, textiles, and plastics continue to thrive. All of these industries share a common thread – innovation – and their vitality has helped make Isère France’s second-leading source of patent applications.
Government agencies in Grenoble-Isère are committed to fuelling the local economy, working with manufacturers to roll out policies that promote value creation and attract investment. Whether by providing funding for innovation or supporting the expansion of a particular industry, Grenoble-Isère’s policy-makers have built a culture of collaboration that is unique in France. For example, the recent Grenoble-Dresden alliance will propel Europe’s micro- and nanotechnology industry to the forefront of today’s global economy. Local government also spearheaded efforts to bring international research instruments to Grenoble. The Institut Laue-Langevin (ILL), the European Molecular Biology Laboratory (EMBL), and the European Synchrotron Radiation Facility (ESRF) have made the city an international centre for the advanced study of matter.
This strong government backing has convinced market leaders like Caterpillar, Schneider Electric, Pomagalski, STMicroelectronics, ARaymond, Becton Dickinson, HP, Xerox, Siemens, and Rossignol to make Grenoble-Isère their home. They – and many other companies – continue to invest heavily in manufacturing here. In recent years Grenoble-Isère has attracted billions in capital investment across all industries. Microelectronics in particular has seen substantial investment, with the Crolles 2 Alliance and Nano2012 initiatives representing $2 billion in CapEx and €4.3 billion in R&D spending.
However, government support for economic development is far from limited to local efforts. The French government is also playing a role in driving innovation and business competitiveness through research grants and tax incentives. Grenoble-Isère will receive €387 million in economic stimulus funding for basic physics, biotech, healthcare, mathematics, and nanotechnology research. This influx of funding will help local businesses grow and stay competitive. France also offers innovative companies Europe’s most attractive tax regime, with tax credits of 40% of total R&D spending the first year, or 80% for R&D conducted in partnership with publicly-funded research centres.
A recent article in Nature1 summed up the trend that is today shaping the Grenoble-Isère economy: “Once known mostly for its natural beauty, Grenoble-Isère is becoming a centre of innovation for academia and industry”. And Grenoble-Isère’s exceptional environment at the foot of the French Alps simply adds to the appeal. The area offers a quality of life capable of attracting – and keeping – top talent, essential to staying competitive in today’s economy.
With its vibrant, diverse local economy, staunch government support for economic growth and innovation, and ground-breaking collaboration between research, higher education, and industry, Grenoble has earned the title of France’s leading hub for innovation2. It might just be the perfect place for your business.

1. Katharine Sanderson, “France: Peak of potential”, Nature 478 (2011) 547–548.
2. L’Entreprise 304 (2011) 46–47.

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