Transcript INDUSTRIAL AND INNOVATION POLICY IN ITALY

INDUSTRIAL AND INNOVATION
POLICY IN ITALY
Paola Ongarato
Elena Lanza
Elisa Moscatelli
Marco Ricciotti
Italy:
seventh largest economy
in the world
fourth most powerful
nation within the EU
The Republic of Italy:
parlamentary democracy since 1946
REGIONS

20 regions
 5 are special regions
-Trentino Alto Adige
-Friuli Venezia Giulia
-Valle D’Aosta
more power:
-Sicilia
-Sardegna
Decisions at regional level
decentralization
OVERVIEW
Italy:
- a founder of EU
- part of EMU
With the enter into EMU, Italy have to adopt a
series of reforms improving its economy, in
particular
TARGETS
Progressively lower interest rates
 Inflaction control at about 2%
 High production and incentives to foster
productive investments, especially in
the South

Despite the reforms, Italy still experiences
slower growth than EU avarage.
gap
Structural impedements
INDUSTRY BACKGROUND
The economic situation is different between
NORTH
SOUTH
 small-medium
 agriculture
companies, usually
family owned
 privatization
 income streams are
much higher
developement
 dominant role of public
sector
 20% of unemployment

Geographical concentration
develops competition and constant
innovation

Traditional sectors with limited
technology.

Weak position in services
recent development of E-business
 Strategic position in the Mediterranean
Basin trade with:- France and Germany
- Eastern europe
- North Africa
- Middle East
IMPORT
Industrial machinary
 Chemical products
 Transport equipement
 Ferrous and non-ferrous mineral
 Energy

ENERGY
Lack of natural resources
 Heavy need of energy
 Oil supply coming from Russia and
Middle East

IMPORT BARRIERS
Monitoring measures applied to imports of
certain sensitive products:

Various apparel
 Texitile product (Italy being a major producer)
and control items such as:

arms
 munitions
There are a number of italian regulations and
EU directives that prohibit certain goods:

Foodstuffs
 Food colouring
 Drugs and narcotics
 Animal products
 Plants and seed grains
 Alcohol
 Cosmetic and toiletries
EXPORT
Greece, Spain and Portugal in EU
More competition for mediterranean
agricultural products
(especially fruit, wine and cooking oil)
Italy is well known for the high quality of
some its products, as agricultural and
manifactural items:
 Foodstuffs (coffee, pasta, grana padano, wine)
 Shoes, apparel and sun-glasses
(Prada, Gucci, Armani, Valentino, Diesel, Benetton,
Sisley, Lux-Ottica)

Luxury goods (Ferrari, Maserati, Ducati,...)
LEVEL OF PARTICIPATION OF THE STATE MEMBERS IN THE
EUROPEAN UNION DUE TO THE POLICY ACTION
UNEMPLOYMENT IN THE
NORTH
UNEMPLOYMENT IN THE
SOUTH
INTERNATIONAL COMPARISON
P.I.L.
(constant prices)
UNEMPLOYMENT
CONSUMPTION
LEVEL PRICES
CONCLUSION
Although Italy is not in the forefront
for the innovation technology and it
is still experiencing slower growth
than the EU, the economy is
however expected to cacth up with
EU avarage in 2004/2005.