alt Hacker NewsFrance has a similar program called CIFRE and it is bad.
An academic pairs with a buddy in industry. This relationship usually remains fixed in their careers. The representative in the company hires an engineer, makes a CIFRE contract and asks the academic to register the student and takes care of paperwork. There is no open call, competitive submission of proposals, a committee and a process. I don’t know how government is OK with this. The company sends the information about the recruitment to the government and gets tax waiver. Therefore, the company hires an engineer paid by taxpayers, nearly free for the company. A small amount of money is sent to the academic for conference travel etc. In many cases, student remains in the company and there is no need for academic other than for periodic paperwork. Importantly, the student works on tasks assigned by the company, which in many cases is not really research. It could be product improvement, mechanical work, client work, or some R&D or short term research. It’s not science or long term research, and no classes are involved. Next year, next student, it will be the same pair.
The program attracts students because they want jobs (in many cases their contracts is extended after 3 years of PhD, and they are actually incentivized to work well during that 3 years and be a good employee). Companies like it because of essentially free engineers and government rapport. Academics are content because they can say they have a student (even if they don’t see the student much if at all sometimes), cite collaboration with industry, and get some money for travel. The academic cannot complain, or require student spend more time in university, because the company would say, we will replace you next time with another academic who will be happy to sign off to paperwork and not to cause issues. The three parties are happy, and the taxpayer looses, because of a badly set up program. Maybe the American version will work, not the French version!
In the UK there is the not entirely dissimilar KTP.
Officially companies apply and are selected on the merit of application, in practice it's dramatically easier for companies already 'in the system' to re-apply.
The engineer (Mostly engineers, but also some scientists) is legally employed by the university, but typically spends all their time at the company. No tax shenanigans, the university's expenses are straight up paid by government.
They don't get a PhD, they just file reports and make presentations to the KTP org representative.
It's fairly common for them to enroll with the university during a KTP though, which sometimes can be paid for from the KTP training budget.
They also get a selection of training courses in business and management subjects, which curiously includes a large section on tax avoidance for small businesses.