Innovation Europe > News > Innovation EU Vol2-1 > Innovation Italy

The financial crisis is affecting the Italian economy as in other EU countries – in 2008, its economy contracted by 1%, production fell by 3.1% and the trend continued in the first part of 2009.

In 2008, Italy’s economy contracted by 1% following growth of 1.6% in 2007. Production fell by 3.1% and the trend continued in the first part of 2009. Sectors which have suffered first have been the metal-mechanic and textile industries, other sectors such as agro-food, construction, commerce and the chemical industry have also seen their investments and confidence in innovation reduced.

The IFIIT index, which measures the confidence for investments in technological innovation, decreased from 78 to 65 points between June 2008 and March 2009. However, sectors such as energy, credit, insurance, telecommunications and luxury goods keep showing special attention towards innovation and new technologies, where investments are not expected to fall.

Italy is below the EU average in innovation performance and its relative position has not improved over the past five years (SII was 0.314 in 2004 and is 0.354 in 2008). According to the EIS, Italy is in the group of “moderate innovators”, showing slow progress and registering a belowaverage annual growth rate (1.8 in 2008 versus 2.3 EU average).

Italy performs well (slightly above the EU average) in the following indicators: (1) R&D activities and employment in medium-high, high-technology and knowledge-intensive services sectors. (2) Community trademarks and design. (3) Non-R&D innovation expenditure. Low performance is registered for indicators such as Human Resources, Finance and Support, and Linkages & Entrepreneurship.

The Italian innovation system is characterised by the presence of many policy-making entities undertaking innovation policy tasks that are sometimes fragmented and unco-ordinated. Also innovation support instruments suffer from fragmentation and are often conceived as short-term initiatives.

A key priority of innovation policy in Italy is therefore to hold a strong strategic vision, both at national and regional level, and a clear perspective to ensure long-term planning and longstanding impact results.

Main innovation challenges

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

Conclusion

Research and innovation policies should remain central to guarantee development and growth, identify key factors to come out of the crisis and face the recovery.

Although the economic and financial crisis calls for prompt intervention to address urgent shortterm challenges, research and innovation policies should remain central in the policy agenda to guarantee development and growth, identify key factors to come out of the crisis and face the recovery.

A clear strategic view for innovation policy is required at central level, while ensuring full commitment to the set objectives, co-ordination and clear allocation of responsibilities among national and regional dedicated entities.