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Speaking as a Frenchman, I think it's coming from a long tradition of scientific excellence (and mathematical in particular) dating back from the Enlightenment, when we had top figures such as Descartes and Pascal.
Then, Napoleon created elite math and engineering schools in the late 18th century (Polytechnique a.k.a. X, Centrale, Normale Sup, etc.) and this is where the "cream of the crop" would go study (future CEOs, top civil servants, etc.).
Though I think the focus is perhaps less on practical engineering (like the US are more famous for "two college dropouts in a garage building the next hot thing"), and more academic excellence and abstract and intellectual pursuits for their own sake (think Bourbaki group last century).
Also, the state has historically subsidized engineering-heavy industries to create national champions (Aerospatiale / Airbus, Dassault, Ariane / Arianespace, nuclear plants, TGV high-speed rail, France Telecom, etc.) as well as R&D centers (like CNRS). 1 reply
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