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 more power: -Trentino Alto Adige -Sicilia -Friuli Venezia Giulia -Sardegna -Valle D’Aosta 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 NORTHSOUTH small-medium companies, usually family owned privatization income streams are much higher agriculture 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 Strategic position in the Mediterranean Basintrade with :- France and Germany - Eastern europe - North Africa - Middle East

IMPORT Industrial machinary Chemical products Transport equipement Ferrous and non-ferrous mineral Energy Energy

ENERGY Lack of natural resources Heavy need of energy Oil supply coming from Russia and Middle East

IMPORT BARRIERS Monitoring measures Monitoring measures applied to imports of certain sensitive products: Various apparel Texitile product (Italy being a major producer) control items and control items such as: arms munitions

regulations directives 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)

high quality Italy is well known for the high quality of some its products, as agricultural and manifactural items: Foodstuffs Foodstuffs (coffee, pasta, grana padano, wine) Shoes, apparel and sun-glasses Shoes, apparel and sun-glasses (Prada, Gucci, Armani, Valentino, Diesel, Benetton, Sisley, Lux-Ottica) Luxury goods 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

P.I.L. (constant prices) UNEMPLOYMENT CONSUMPTION LEVEL PRICES INTERNATIONAL COMPARISON

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.