Institut numerique

Hypothesis 4: Greater Paris: Incubator of IT and R&D.

ICT can be used in order to resolve different issues. Galit Cohen,, Ilan Salomon and Peter Nijkamp
have characterized the ICT as following:

“- Very dynamic technological changes, with rapid penetration and adoption rates;
– Decreasing costs for new equipment and features;

– A rapidly increasing range of applications and penetration in many realms of professional and
personal life;

– An intertwined institutional market place, with the private sector acting in a decreasingly
regulated environment; and

– A production and services package dependent on a range of qualities of skilled human resources.”(150)
Indeed, according to the authors, the ICT are defined as electronic technologies and services used to
improve the process. They are used by most of the businesses, in order to reduce human mistakes, and
facilitating the actions(151).

The authors have defined two different policies objectives form concerning ICT use, in an urban
environment. The first one is to create infrastructure (which correspond to the Greater Paris case),
indeed the ICT would help the governments to enhance the construction of different assets (public
transports, buildings). The second form would be to credit the city of a strong international profile,
which is still the case regarding to the Grand Paris project(152).

In order to obtain these results expected from ICT, three types of policies have been identified.(153)
Indeed, “Direct”, “Indirect” and “by the way” policies.

– Direct policies: The objective is to promote the use of the ICT, and also to reach broader
goals such as economic growth. An example of direct policy approach would be an
investment to support the research on ICT or an improve of internet municipal (propose
services on internet).

– Indirect policies: The indirect policies are the fact to obtain some behavioral changes from
the population through ICT use. Indeed, these policies have the principle to communicate
on social changes with ICT use (an example would be computer classes at school).

– By the way policies: They are the results of actions not directly correlated to the ICT, but
which affect them. The example given is the defense industry which is one of the main
contributors to the ICT development without being directly involved in.

As the authors mentioned, the distinction between direct and indirect policies are not clear, both of
them can be classified according to the context. Indeed, when the actions followed are directly ICT
oriented (creation and development of new tools), then we consider the actions as “direct policies”;
“Indirect policies” are considered when results expected need the use of ICT(154).

In our context, all of these policies can be considered. Indeed, by developing the scientific park of
Paris-Saclay, we can assume that the investment done will support direct research on ICT (direct
policy). This investment will also permit the purchase of ICT tools in order to conduct studies about
other subjects (Indirect policy). We can also assume that this investment will lead to a By the way
policy. Indeed, Paris Saclay focuses on a large number of topics, which can lead improve the ICT.

We can then understand the impact of R&D and IT on Grand Paris through two factors: public
transports and Paris Saclay. We can directly consider the automatic public transport line as a “by the
way” policy, while Paris Saclay could as mentioned earlier considered as Direct, Indirect and By the
way policies to develop the ICT

First, we analyze the direct impact of new technologies use in the public transport context. Indeed by
analyzing the first automatic line present in Paris we can already see the benefits of it : regular interval
of 85 seconds for the automatic line, compare to 100-120 seconds for a manual one. Also the speed of
an automatic line is increased by 15-20 km/h (from 20-25 Km/h to 40 km/h) compare to a manual
line.(155)

Nevertheless, as every lines composing the Paris underground network are different, it would be
interesting to see what would be the impact of a transformation of one line. Moreover this point is
even more crucial as the Automatic line of the Greater Paris will be connected to existing lines, which
will have to be adapted to fit in the new automatic transportation system.

(156) The study run about the line 3 of Paris highlights the benefits brought by the automation of a line
thanks to its ICT. Indeed, a simulation is done in order to compare what would be the gain of an
automatic line 3 rather than the existing manual one. The results are the following:

Figure 16 (157): Comparison between Manual and Automatic line.

N= Number of trains on the line

M= Manual line
A= Automatic line
Results: Arbitrary unity of time

Indeed these results show clearly the impact of the use of new technologies on the underground
network. When the number of train in circulation on the line is low (N=30 in the study), we can see
that the ICT have not a real impact on the journey time needed by the trains to complete the entire line
as the time needed is slightly the same. Nevertheless, higher is the number of trains, higher are the
benefits received. Indeed, the study shows a difference of 62 unities of time when N=40 (M=1203 and
A=1141), the results are even reaching a difference of 250 unities of time when N=50(158).

The transportation network of the Greater Paris project has the main objective to reduce the time of the
travelers, by connecting new stations, and also by improving the existing infrastructures. This is why
we can assume that new technologies in the public transports mainly impact the Grand Paris project,
will permit to reach these expectations by responding perfectly to the needs of the region: a reduction
of time of the every-day journeys.

The second aspect of the Grand Paris project concerning the development of the new technologies is
the investment in the scientific park of Paris Saclay.

Donald S. Siegel, Paul Westhead and Mike Wright, have transcribed in their work the three
fundamental features of Science Park (according to the United Kingdom Science Park Association):
Their purpose is to support the growth of R&D, create a link between large firms and small high-tech
companies and permit a direct link between universities and companies(159).

A study run by these three authors in the United Kingdom has shown the impact for companies to be
present on Science parks (by comparison to companies not present on Science Park). According to this
research, it is claimed that science park firms generate more patents and new products(160). This study
also shows that companies located on a Science Park are more productive in research than companies
off Science Park(161). This statement confirms the necessity and the benefits for the Greater Paris to
invest in Paris-Saclay, as the main objective is to reinforce its technological cluster.

Indeed, this investment of the French government aims to promote a higher productivity in R&D but
also to promote the creation of new high-tech companies. Again, the development of Paris-Saclay will
be really useful to obtain this expected result. According to Roure and Keely (1989), four factors are
essential in the process of creation of New Technology-Based Firms(162):

“-The presence of “incubator” type companies in the area;

– Attractive potential market, preferably, near;

– Universities with a strong interaction with firms;

-Government purchase contracts, research projects and incentives or subsidies to innovation.”

As we can see, these four factors can directly link these factors to Science Park advantages . Indeed,
according to a study run by Peter Lindelöf, Hans Löfsten, High-tech companies are mainly taking into
consideration the nearness to quality universities in order to decide the location of their headquarter(163).
The study also shows that Science Park permits to firms to create a strong network. Indeed the
proximity to important customers, suppliers, researchers, other companies and high qualified workers,
offered by Science Park would permit to support the growth of the companies(164).

This strength of networking proposed by the Science Park to the High-tech companies is also reflected
by the value itself of the firms. Indeed a study run by Joanne Hill and Joel L. Naroff has proven that
companies on Science Park have higher returns and lower risks for investors. The authors have also
shown a correlation between the importances of location for these companies: they need to belong to a
high-tech firm location in order to perform better(165).

To conclude hypothesis 4, yes we can see that the Greater Paris project will impact the new
technologies in the region. Indeed, by developing an automatic public transport network, the region
will increase its ITC use. Also by investing in a new the Science Park Paris Saclay, the government
will generate the development of new products, new patents. Also as we have seen, the Science Park
leads to a better productivity for the companies and the research centers present on it. Science Park,
also presents financial opportunities for companies, as they can be considered as more reliable by
investors.

150 Galit Cohen, Ilan Salomon and Peter Nijkamp, “Information-communications technologies (ICT) and
transport: does knowledge underpin policy?, Telecommunication policy, 2002, P.P. 33
151 Ibid, 2002, P.P. 35
152 Ibid, 2002, P.P.36
153 Ibid, 2002, P.P.36
154 Ibid, 2002, P.P.37
155 Project Scientifique collectif, « Automatisation d’une ligne de métro », RATP, May 2003, P.P. 4
156 Project Scientifique collectif, « Automatisation d’une ligne de métro », RATP, May 2003, P.P. 32
157 Ibid, RATP, May 2003, P.P.38
158Ibid, May 2003, P.P. 38
159 Donald S. Siegel, Paul Westerhead, Mike Wright, « Assessing the impact of university Science Parks on
reaserch productivity : exploratory firm-level evidence from the United Kingdom », International Journal of
Industrial Organization, March 2003, P.P. 3
160 Ibid, March 2003, P.P. 11
161 Ibid, March 2003, P.P.13
162 Roure, J. B. and R. H. Keely, “Comparison of Predicting Factors of Successful High Growth Technological
Ventures in Europe and U.S.A.”, 1989 sourced by Peter Lindelöf, Hans Löfsten, “Science Park Location and New
Technology-Based Firm in Sweden : Implications and Performance”, Small Business Economics, Vol. 20, N°3,
May 2003, P.P. 252
163 Peter Lindelöf, Hans Löfsten, “Science Park Location and New Technology-Based Firm in Sweden :
Implications and Performance”, Small Business Economics, Vol. 20, N°3, May 2003, P.P. 253
164 Ibid, May 2003, 253-254
165 Joanne Hill and Joel L. Naroff, “The Effect of Location on the performance of High Technology Firms”,
Financial Management, Vol. 13, N°1, Spring 1984, P.P. 36

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