Abstract
French hardware manufacturers were by and large incapable not only of translating technological advances into industrial products but even of understanding the new opportunities these advances offered. While true up to a point, this approach, focused on the failure of the so-called ''national champion'' policy, is incapable of explaining why French providers of IT services have had considerable success both in their own domestic market and in the wider European market. The argument advanced is that a very active higher education policy and national research strategy has produced a supply of particularly valuable competences which feed the IT sectors. In addition, the previous mission-oriented policies encouraged the development of effective technological districts which now nurture a plethora of small, innovative IT firms.
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