Private Equity Firms

Introduction

I.1. Interfirm alliances as a source of innovation and the role of private equity

Cooperative approaches in the shape of strategic alliances between companies are a source of innovation and a factor for economic growth in developing economies. Alliances are particularly important for the development of SMEs, which are predominant in Europe, and for which internal resources are often limited [SCH 06].

In France, small and medium-sized enterprises (SMEs) account for nearly 99.9% of all companies (2010 data). Nationally, they employ 52% of employees and generate 38% of turnover, which is almost half of the value added (49%) [POR 10]. The creation of SMEs is on the rise. In 2012, France recorded nearly 549,976 new business start-ups [APC 13]. According to the latest Eurostat comparison in 2009, France had the highest number of business start-ups in the European Union (Figure I.1).

These figures highlight the importance of economic policies and measures aimed at SME development [MCC 10]. Several policies have been put in place to foster alliances and networking among SMEs [SCH 06]. The European cluster policy is an example of such a policy, as well as its French counterpart, the “Pôles de compétitivité” policy, which was launched in 2004. In the wake of Silicon Valley¹, they aim to encourage interactions between various actors through the creation of appropriate environments for intensive knowledge exchange and synergies between them. Within a given territory, they ...