Explains a report which describes France's failure to encourage technology transfer and wealth creation. Innovation and entrepreneurship stifled by bureaucracy; Problems with industrial policies; Who commissioned this report; Comparison with a 1985 report; Report's being short on solutions to problems; Report's recommendations; Need to divert government subsidies; Need to create national technology funds; Laws needing to be changed. INSET: Allegre seeks boost for young researchers, by D.B..