Portrait of the Regions - FRANCE - RHÔNE ALPES - Economy

Portrait of the Regions - FRANCE - RHÔNE ALPES - Economy

RHÔNE ALPES - Economy

France?s top region after Ile-de-France

In 2000 Rhône-Alpes accounted for nearly 10% of France?s GDP. In absolute terms the region is the second largest contributor to the nation?s GDP, after Ile-de-France. In terms of GDP per inhabitant it also ranks second with 24 113 Euro per inhabitant.

The region?s biggest contribution by branch is to industry. In 2000 the region accounted for 12.7% of the nation?s industrial gross value added. Its second biggest contribution was to the construction sector, accounting for 10.6% of France?s gross value added of the construction sector. Followed by market services (9.1%) and agriculture (5.3%).

The modesty of the Rhône-Alpes region's contribution to French agriculture is attributable to the natural handicaps imposed by its relief, the fragmentation of landholding and inefficient farming. Agriculture plays a very minor role in the region's economy in terms of value-added (1.5% in 2000). 38% of the region?s land is used for agriculture, of which 54% is grassland. Vineyards cover 3.5% of the agriculture land and fruit orchards 2.6%. There is still a very large number of holdings in existence (56 962 in 2000) and so the average size of holdings tend to be fairly small (27 ha) compared to the national average. Nearly half (46%) of farms are geared to stock rearing. In particular, Rhône-Alpes keeps a large part of France?s goats (12%) and horses (9.4%).

Preponderance of industry

Rhône-Alpes has a long-standing industrial tradition that has led to the emergence of a high-quality services sector able to provide the industrial enterprises with their needs for development.

The industrial tradition goes back a long way and owes its origin to the region's natural resources. In the energy sector in particular, Rhône-Alpes is very well endowed with hydroelectric resources, and several nuclear power stations have also been built in the region. Rhône-Alpes is France?s number one powerhouse in term of energy production. In 1999 the region generated 23% of all the nuclear energy produced in France.

Industry remains an essential component of economic activity. At regional level industry produced 26.6% of the region's value-added. Industrial production is very diversified. Rhône-Alpes is the second industrial region of France. However some sectors dominate, for which Rhône-Alpes can claim first position among the French regions. Metalwork and smelting is the leading industrial sector of the region and constitutes one of the sectors in which Rhône-Alpes excels. The mechanical equipment sector remains one of Rhône-Alpes?s prize sectors. The chemical, rubber and plastics sector is also one of the activities of excellence of the region. This sector which is partially being restructured is composed of both large chemical concerns and SMEs (?Plastics Valley? at Oyonnax). A traditional activity of the region, the textile sector is evolving in a very competitive European and international environment. Finally the electric and electronic components sector is booming. Essentially composed of large concerns (Schneider, Thomson, ST Microelectronics, Alcatel) it is particularly dynamic.

The largest contribution on the industrial front is made by the intermediate goods sector, accounting for 38.5% of the region?s industrial value-added in 2000. Capital goods accounted for 21.2%, consumer goods for 11.1%, the agri-food industry for 7.2%, and energy for 22.1%. In 1999 industrial investment in the region accounted for 12.5% of total investment in France?s industry.

Industry is particularly well-represented and reflects the presence of a number of French and foreign industrial groups and a dense network of small and medium-sized enterprises (SMEs). In 2001 establishments employing between 20 and 49 people accounted for 60% of all industrial establishments, but employed only 21.6% of the industrial workforce. Establishments employing between 100 and 499 people accounted for 17.2% of all industrial establishments, and employed the largest share of the workforce (39.7%). Large concerns employing 500 or more people accounted for 2.2% of the industrial establishments and employed 22.9% of the workforce. In 1999 17% of the region?s industrial establishments belonged to companies of which at least 20% of the capital was owned by foreign concerns.

In 2000 the services sector as a whole accounted for 66.5% of the region?s gross value added. The market services sector plays a leading role. In 2000 it produced 48% of the region's value-added. Although this figure is below the national average (51.6%) because of the dominant position of Ile-de-France, it is higher than the average for the provinces (45.9%).

Financial intermediation and real estate accounts for the highest share of value added of market services with 24%. Wholesale and retail accounted for 14.6% of gross value added of services, below the average for the provinces (15.2%), but higher than the national average. Where the region really stands out from the provinces is for non-market services. Rhône-Alpes has a gross value added for non-market services (18.4%) that is lower than the metropolitan average, and markedly lower than the average for the provinces (21.7%).

Rhône-Alpes also has an impressive R&D potential and is indeed the leading provincial region in this respect. The researchers are more or less equally divided between public establishments (research centres, universities and the prestigious Grandes écoles) and private firms or the technical research centres in specific sectors. Several laboratories with European or wider interests and reputations are also located in the Rhône-Alpes region. In 1999 over two thirds of spending in R&D was by private sources. 11.1% of France?s researchers were in Rhône-Alpes in 1999.

An exceptionally good region for skiers

Last, but not least, there is the tourist industry, which everyone knows is highly developed in the alpine départements of Rhône-Alpes but is also, a well-developed sector of activity in the upland areas of the Drôme and Ardèche départements. Few other regions can absorb so many visitors, in so many types of accommodation, in summer as well as in winter. Rhone-Alpes has the highest number of hotels in France with 2 458 in 2001, and ranks second in terms of bedroom capacity. With over 18 million nights Rhone-Alpes made up 9.9% of total nights in metropolitan France in 2000, taking third place after its neighbouring region, Provence-Alpes-Cote d?Azur, and the region of the capital, Ile-de- France.

Rhône-Alpes?s exceptional natural environment has made a large contribution to the quality of life and permitted the development of a sizeable tourist industry. The region's greatest natural attraction is the Alps, where some of the world's best ski slopes are to be found. So it is hardly surprising that Rhône-Alpes has already hosted the Winter Olympics three times (Chamonix 1924, Grenoble 1968 and Albertville 1992). Every effort has been made, in developing the ski resorts, to respect the integrity of the vast, unspoilt mountain areas whose environmental protection has been guaranteed by the designation of national parks (Vanoise, Oisans, Vercors, etc.). In summer, the same open spaces offer a wide variety of pursuits for the holiday-maker. Rhône-Alpes can boast a number of other unspoilt areas which may be a little less spectacular but are still crammed with tourist attractions. They include not only the highlands of the southern part of the Jura and the eastern edge of the Massif Central, but also (closer to the urban centres) the ponds of La Dombes, the low-lying district to the north-east of Lyons and, last but not least the mountains of the Massif du Mont Pilât to the east of Saint-Etienne.

Rhone-Alpes is the third most important region in terms of air passenger traffic with over 6.6 million passengers departing and arriving in 2001. The air cargo handled in the region amounted to 30 000 tons, ranking the region in fifth position on the national scale. With over 25.5 million passengers the rail network of the region handled the third largest volume of all the regions of France, and ranked fourth in terms of rail freight transport with over 14 million tons in 2001.

In 2001 there were over 3.6 million vehicles registered in Rhone-Alpes, of which 83.4% were private cars. The number of private cars in 2001 increased by 14.7% compared to 1990. In 2000 the road network of the region had 2 702 km of national roads, and 1 183 km of motorway.

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This text, finalised in March 2004, is based on the information published by INSEE France on the CD-Rom « La France et ses régions » in 2003.