Innovation and Innovation Policy in Italy 

Overview of Innovation Policy

Despite its traditional dynamism and flexibility, the Italian economy has faltered in recent years, partly because of the unfavourable developments in the international economy but also because structural reforms have not yet gone far enough to turn the tide. The improvement in the world economic climate during 2004 was not reflected in the Italian industrial production performance that is showing signs of weakness, due, in part, to the loss of competitiveness of Italian products in domestic and foreign markets.

As far as innovation is concerned, is behind its main European partners in many indicators of technology and innovation such as lifelong learning, business R&D expenditure, tertiary education, EPO and USPTO patents, reflecting a difficulty in overcoming traditional weaknesses. Notwithstanding an overall poor performance, performs better on indicators for non-technical changes (i.e.changed organisational structures and innovation generating significant changes/improvements in aesthetic appearance and industrial design). Several structural and cyclical factors differentiate the Italian economic system from its main international partners and they strongly influence the diffusion of innovation patterns and high-tech systems. These are: (i) predominance of small and medium-sized enterprises affecting R&D expenditure, innovation enhancement and human capital improvement, (ii) perception of innovation by SMEs as a modernisation process rather than a strategic activity, (iii) uneven distribution of economic activity and ICT infrastructure, (iv) low levels of technical education, (v) limited propensity to patent applications, (vi) shortage of finance and need for a more dynamic venture capital market. Furthermore, the majority of SMEs do not carry out “formal” R&D activities, but their innovative processes are strictly linked to their capacity of learning-by-doing. The innovation carried out by these enterprises is not properly recorded in the statistics since statistical data on innovation records only the more formal innovative activities (e.g. patents registration).

The design of innovation and R&D policies is largely performed at government level, where the main priorities are identified. A recent positive sign on innovation governance is the increasing consultation with stakeholders, although their effective contribution in policy making is still limited. Regarding new policy measures, the most recent actions undertaken by the Italian Government are the following:
- Creation of public-private joint-labs in strategic sectors to sustain new high-tech industries
- Focus public intervention on 10 strategic programmes foreseen in the National Research Plan
- Establishment of 11 Technology Districts
- Promotion of Italian participation in Technology Platforms set up by the European Union
- Creation of strategic international research joint-labs
- Support the development of Information and Communication Technologies (ICT) and foster the adoption of ICT by enterprises (specially by SMEs)
- Incentive schemes that target sectors or activities identified as priority investment areas and that foster linkages between SMEs and research institutions (Innovation Technology Fund, Integrated Package Aid)

At regional level, new power has been granted to the regions in the field of scientific research and technological innovation policy formulation since 2001. Regions are gaining autonomy in setting their own innovation goals and have started to put forward regional innovation plans that take into account their local distinctiveness and peculiarities.

The formulation of policy objectives has substantially improved during recent years but the targeted objectives are still quite general and not broken down into sub-segments of specific, measurable, and quantitative indicators. The overall policy package is made up of somewhat positive but un-coordinated measures resulting in a set of measures that is not always consistent and whose objectives are not carefully considered in their long-term effects. Therefore, increased co-ordination across Italian Government departments is necessary and mechanisms need to be put in place also for 'vertical' co-ordination, so that policies interlock at national and regional levels. A common framework for overall co-ordination and coherence must be present with the objective of assisting regional systems in extracting the maximum possible benefit from the multi-regional and the national dimension.

Who Is Who

Senior Official(s) for Italy
Antonello Lapalorcia
Correspondents for Italy
Aleardo Furlani
Rebeca Lucas




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Innovation Performance

 Performance in Innovation Scoreboard 2008

Find Out More

 List of relevant websites