Innovation Europe > News > Innovation EU Vol1-1 > Italy

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. 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.

Main innovation challenges

• Innovation financing (especially venture capital).
• Mobility of talents.
• Improvement of technology.

Action

Several signals launched in the past few years seem to go in the right direction both in terms of policy governance (for example, strengthening co-ordination as well as several attempts to improve evaluation) and policy instruments (introduction of automatic measures, selective interventions in key areas, rationalisation of funds for R&D). Nevertheless, these attempts are still insufficient to give the necessary impulse to the national innovation actors to encourage further investment in innovation and technological leverage, especially among SMEs.

So far, targeted and effective public support to innovation has not become a top priority for the central government in terms of concrete actions and funding schemes with a long-term prospect, ensuring continuity in the direction of the reforms undertaken. However, interesting schemes and policy measures have been implemented at regional level that have proved to be successful and attractive to local companies, including SMEs. Therefore, there is no doubt that a clear strategic view for innovation priorities is required at central level while ensuring more co-ordination and a clearer allocation of responsibilities among the different policy levels.