REGIONAL VARIATIONS IN NEW FIRM FORMATION IN FRANCE

Until the late 1970s, all the major groups in France-analysts, those responsible for policy and those participating in the economy-agreed that the Fordist productive model was optional for France. This model assumes that large vertically integrated firms will form the core of the national economy and that small and medium enterprises (SMEs) will have a secondary role. There have been drastic changes in economic organizations in France, with increases in the birth and death of firms, changes in the population of firms, a reduction in the average size of French firms, a shift in sectoral emphasis away from manufacturing and a shift in the spatial distribution, with more firms and jobs in Ile-de-France and the southern regions. Since 1980, SMEs have been the major source of economic growth across all of France. Careful attention to regional characteristics associated with subsequent firm births indicates that regional factors have had a major impact and that different types of regions may be affected by different startup processes. It is proposed that future studies focus on the startup processes most viable in different types of regions. Such research should substantially facilitate the diagnosis and treatment of regions with declining economic health.