1. technology and computing
2. technological innovation

European Trend Chart on Innovation
Annual Innovation Policy Report for
ITALY
Covering period: September 2003 – August 2004
European Commission
Enterprise Directorate-General
A publication from the Innovation/SMEs Programme
European Trend Chart on Innovation
Innovation is a priority of all Member States and of the European Commission. Throughout
Europe, hundreds of policy measures and support schemes aimed at innovation have been
implemented or are under preparation. The diversity of these measures and schemes reflects the
diversity of the framework conditions, cultural preferences and political priorities in the Member States.
The ‘First Action Plan for Innovation in Europe’, launched by the European Commission in 1996,
provided for the first time a common analytical and political framework for innovation policy in Europe.
Building upon the Action Plan, the Trend Chart on Innovation in Europe is a practical tool for
innovation organisation and scheme managers in Europe. Run by the Innovation policy Unit of DG
Enterprise, it pursues the collection, regular updating and analysis of information on innovation policies
at national and European level.
The Trend Chart serves the ‘open policy co-ordination approach’ laid down by the Lisbon Council
in March 2000. It supports organisation and scheme managers in Europe with summarised and
concise information and statistics on innovation policies, performances and trends in the European
Union (EU). It is also a European forum for benchmarking and the exchange of good practices in the
area of innovation policy.
The Trend Chart products
The Trend Chart on Innovation has been running since January 2000. It now tracks innovation
policy developments in all 25 EU Member States, plus Bulgaria, Iceland, Israel, Liechtenstein, Norway,
Romania, Switzerland and Turkey. It also provides a policy monitoring service for three other nonEuropean zones: NAFTA/Brazil, Asia and the MEDA countries. The Trend Chart website
(www.cordis.lu/trendchart) provides access to the following services and publications, as they become
available:
•
•
•
•
•
•
•
a database of innovation policy measures across 33 European countries;
a news service and related innovation policy information database;
a ‘who is who’ of agencies and government departments involved in innovation;
annual policy monitoring reports for all countries and zones covered;
all background material for four annual policy benchmarking workshops;
the European Innovation Scoreboard and other statistical reports;
an annual synthesis report bringing together key of the Trend Chart.
The present report was prepared by Piera Magnatti, NOMISMA. The information contained in this
report has not been validated in detail by either the Member States or the European Commission.
Contact: entr-trendchart@cec.eu.int
This document originates from the European Commission’s ‘European Trend Chart on Innovation’
(Enterprise Directorate-General).
Copyright of the document belongs to the European Commission. Neither the European
Commission, nor any person acting on its behalf, may be held responsible for the use to which
information contained in this document may be put, or for any errors which, despite careful preparation
and checking, may appear.
European Trend Chart on Innovation
CONTENTS
Executive Summary...................................................................................................................................i
1.
National Innovation System in Italy ............................................................................................ 1
1.1 Innovation performance.............................................................................................................. 1
1.2 Innovation governance system................................................................................................... 5
1.2.1
The national innovation system ......................................................................................... 5
1.2.2
Innovation policy making and delivery structures .............................................................. 7
1.2.3
Regional innovation systems and policies ......................................................................... 9
2.
Innovation policy in Italy ........................................................................................................... 11
2.1 Innovation policy framework ..................................................................................................... 11
2.2 Policy events & policy debates ................................................................................................. 12
2.3 Key developments in innovation policy measures.................................................................... 14
3.
Implementing innovation policy in Italy ..................................................................................... 17
3.1 Fostering an innovation culture ................................................................................................ 17
3.1.1. Education and initial and further training. ........................................................................ 17
3.1.2. Mobility of students, research workers and teachers ...................................................... 18
3.1.3. Raising the awareness of the larger public and involving those concerned.................... 18
3.1.4. Fostering innovative organisational and management practices in enterprises.............. 18
3.1.5. Public authorities and support to innovation policy makers............................................. 19
3.1.6. Promotion of clustering and co-operation for innovation ................................................. 19
3.2 Establishing a framework conducive to innovation................................................................... 21
3.2.1
Competition...................................................................................................................... 21
3.2.2
Protection of intellectual and industrial property.............................................................. 21
3.2.3
Administrative simplification............................................................................................. 22
3.2.4
Amelioration of legal and regulatory environments ......................................................... 22
3.2.5
Innovation financing ......................................................................................................... 22
3.2.6
Taxation ........................................................................................................................... 24
3.3 Gearing research to innovation ................................................................................................ 25
3.3.1
Strategic vision of research and development................................................................. 25
3.3.2
Strengthening research carried out by companies .......................................................... 26
3.3.3
Start-up of technology-based companies ........................................................................ 27
3.3.4
Intensified co-operation between research, universities and companies ........................ 28
3.3.5
Strengthening of the ability of companies, particularly SMEs, to absorb technologies and
know-how ....................................................................................................................................... 28
4.
List of TREND CHART measures ............................................................................................ 29
5.
Bibliography and sources ......................................................................................................... 32
European Trend Chart on Innovation
Executive Summary
1. Snapshot of innovation performance
The Italian economy has grown at a pace well below the European average over the past five years,
expanding at an annual rate of 1.4 percent. The loss of competitiveness with respect to the developed
countries and, even more, the emerging economies, remain the greatest weakness of the Italian
economy. Italy’s share of world trade at constant prices fell from 4.5 percent in 1995 to 3.9 percent in
1998 and 3 percent in 2003. The fragmentation of the economic structure limits productivity gains,
research, the development of innovative, technologically advanced products, and the conquest of new
markets. Low growth and loss of competitiveness are causing difficulties in an increasing number of
companies, including some larger ones. In 2003 economic activity continued to expand slowly.
Italy performs relatively poorly on the European Innovation Scoreboard, with only three indicators
above the EU mean on the 2003 Scoreboard. Areas of significant concern are the number of hightech patent applications, early stage venture capital and lifelong learning, all of which are below the
EU mean and falling further behind. Nevertheless, it is apparent that the strengths of Italy’s traditional
and craft-based industries are not fully reflected in these measures. In regional terms, the Scoreboard
shows that innovative capacity – as with most Member States – is concentrated in just a few regions,
with Lombardy (centred on Milan), Piedmont (Turin) and Lazio (Rome) being the leading regions.
It is a common opinion (Confindustria, Trade Unions, Bank of Italy) that basic research, and in a
shorter-term perspective, a more intensive and pervasive use of the new technologies, are crucial for
the growth of the Italian economy. The Government’s budgetary restrictions to reduce overall national
debt and reduce the annual budget deficit have meant that public funding programmes for research
and innovation activities are heavily oversubscribed, and overall funding has been cut in recent years.
One solution proposed in the 2003 budget was to tax sales of cigarettes and use the resulting
revenue to fund research in universities and research institutions.
National Innovation SWOT overview
Strengths
•
Systematic attention to SMEs needs.
•
Systematic attention to co-operation amongst
firms and between firms and other institutions.
•
More measures based on automatic
mechanisms and various simplifications of the
application procedures.
•
In general, an articulated set of measures to
encourage innovation and technology.
Opportunities
•
The reform of the higher education system.
•
The new ‘vision’ for the Structural Funds after
2007 (cohesion + competitiveness).
Weaknesses
•
Focus on the development of SMEs in
traditional sectors more than the rise of
technologically leading SMEs.
•
Too much process-innovation, and hence
labour-saving, rather than product innovations
•
Partnerships involving national partners rather
than European or international ones.
•
Public and private research systems: the two
are still fairly detached from one another.
•
Differences in the ability of the regional
administrations to manage the R&I resources.
•
Problems with the practical implementation of
these instruments (lack of resources; delays
in availability; delays in the adoption of the
necessary regulations to launch the
instruments; difficulties on the part of the
Public Administration offices in organising and
managing instruments due to bureaucratic
sluggishness or insufficient organisational
resources).
Threats
•
Constraints to public expenditures due to the
Stability Pact rules.
•
Increasing competition of the new EU
member states in terms of high-tech
investments attraction.
i
European Trend Chart on Innovation
2. National objectives for innovation
When elected in May 2001, the new Government made economic growth a key priority, including
improving Italy’s innovation competence, and set ambitious targets for administrative simplification.
One of the first moves was to reorganise the Government’s structure so that the ministries
responsible for education, universities and research were amalgamated. Today, the main ministries
with responsibilities in the innovation field are the Ministry of Education, Universities and Research
(MIUR) and the Ministry of Productive Activities. The new Government also created the Minister for
Innovation and Technologies, to encourage development of the Information Society in Italy.
In recent years, a number of tax incentives have been introduced at national level to encourage firms
to innovate, in particular tax deductions for investment in new machinery and training of staff.
Simplifying the process of starting a company also makes it easier for entrepreneurs. One-stop shops
for those planning to launch manufacturing firms now operate in over two-thirds of Italian
municipalities. The mission of universities in Italy has also been reformed in the past few years as well
with teaching and research staff in public organisations allowed to hold positions in private
companies. At the same time, universities have gained much greater autonomy. Equally important in
encouraging technology transfer has been the recent reform of the intellectual property rights system.
In July 2003, the Minister for Innovation and Technology and the Ministry of Productive Activities
launched an Action Plan for ICT Innovation in the Enterprises which provides a comprehensive
and integrated framework of measures to promote and strengthen an innovation economy ICT based.
In 2002, the MIUR adopted a national research plan covering the next three years.
3. Appraisal of the policy process
Italy has developed a fairly articulated set of measures to encourage innovation and technology.
Some of these instruments are also fairly advanced and innovative; similar considerations can be
made for the regional governments. However, the critical problem with Italian policies, both at the
regional and national levels, is the practical implementation of these instruments, often because of the
lack of resources and delays in their availability, delays in the adoption of the necessary regulations to
launch the instruments, difficulties of the Public Administration offices in organising and managing the
instruments because of bureaucratic sluggishness or because they did not have sufficient
organisational resources. Therefore, Italy is gradually introducing measures based on more automatic
mechanisms such as tax credits, and in recent years has on many occasions introduced various
simplifications of the application procedures. However, the budgetary restrictions have meant that
overall funding has been cut in recent years.
The Government (Council of ministers, CIPE) identifies priorities, and socio-economic partners
consultation is formally used. Government officials in general design policy measures. Key
stakeholders (including the business sector) are often involved in the process. A large scale
discussion of national (innovation) performance was performed in April 2004 by Confindustria,
together with the Trade Unions and the Government. It was generally agreed that Italy spends too
little on research and innovation and the Government should invest more in this field.
There is also an increasing demand for evaluation of results of public spending. Evaluation is mostly
confined to the selection of candidates for financing, it is basically carried out by the members of the
scientific community, it is not a part of government management procedures, and, when carried out, it
has little effect on decisions. The limited experience in carrying out evaluation, the inherent risks of its
improper use, and the difficulty in reporting results in the presence of unclear objectives, represent the
major obstacles to establishing an articulated evaluation system.
4. Implementing innovation policy – what’s new !
Based in Genova, a New Italian Institute of Technology will deal with technological and scientific
research and technological education and training as a part of a wider process of reform that the
ii
European Trend Chart on Innovation
Government is undertaking for the modernisation of the national scientific and technological system.
The initial budget of the Foundation amounts to EUR 50 million for 2004 and EUR 100 million a year
for the next ten years.
A Framework Agreement was agreed with the Ministry of Education, Universities and Research
(MIUR). It aims to reinforce R&D activity as the basis for economic growth in Europe. It provides for
EIB financing of around EUR 40 billion in the EU by 2010.
The Government has recently adopted a new initiative: the creation of ‘technological’ districts in
some carefully selected geographic locations in Italy.
A new General Directorate for the internationalisation of scientific and technological research
has been set up at the MIUR.
A new law: Tecno-Tremonti – Incentive for R&D. For the financial year 2004 it is possible to reduce
the taxable income by R&D costs, including those for obtaining a patent.
Tax relief for researchers taking up residence in Italy. In order to encourage foreign researchers
to move to Italy, Art.3 of DL 269/2003 has been approved.
iii
European Trend Chart on Innovation
1. National Innovation System in Italy
1.1 Innovation performance
Economic performance1
The Italian economy has grown at a pace well below the European average over the past five years,
expanding at an annual rate of 1.4 percent. Consumption growth was weak but not out of line with
that in the other euro-area countries. The loss of competitiveness with respect to the developed
countries and, even more, the emerging economies remains the greatest weakness of the Italian
economy. Industrial production has risen by only 0.9 percent over the last five years. Investment in
machinery, equipment and transport equipment has slowed since 2001. Exports of goods and
services declined in volume by 3.4 percent in 2002 and by a further 3.9 percent in 2003; in five years
exports grew by just 3.6 percent. Italy’s share of world trade at constant prices fell from 4.5 percent in
1995 to 3.9 percent in 1998 and 3 percent in 2003; at current prices the decline was smaller. Italian
exports are concentrated in traditional and luxury sectors, where they owe their success to quality and
style. Italian sales of leather products and footwear as well as furniture account for about 14 percent
of the world total. Italy’s share of the market for non-metallic mineral products is about 12 percent,
while that of textiles and clothing is seven percent. All are mature sectors which, taken together,
account for just over one tenth of world trade. Italy produces few technologically advanced products.
The country’s share of the market for machinery and mechanical equipment has remained stable at
around 10 percent; for transport equipment it fell from 3.7 percent in 1998 to 3.3 percent in 2003.
In Italy, the average annual increase in potential GDP, estimated at 2.4 percent for the ten years from
1981 to 1990, fell to 1.6 percent between 1991 and 2003. Weak business investment will tend to
impose a further limit on supply growth in the coming years. The expansion of expected demand is
curbed by the loss of competitiveness caused by meagre productivity gains and rising production
costs. In the last two years the appreciation of the euro has also played a role.
The share of off-the-books employment remains large. The tendency of the size of firms to shrink,
which is under way since the end of the 1970s, has intensified. According to 2001 census data, the
average number of workers in Italian firms is less than four. The fragmentation of the economic
structure limits productivity gains, research, the development of innovative, technologically advanced
products, and the conquest of new markets.
Econometric analysis of the data on the major branches of the economy shows that gains in total
factor productivity depend on the intensity of investment in new technologies and the extent of
exposure to international competition. These characteristics in turn are correlated with the firm’s size.
Low growth and loss of competitiveness are causing difficulties in an increasing number of
companies, including some larger ones. Italy’s economy has long been distinguished by industrial
districts, which have attenuated the disadvantages of smallness.
In 2003 economic activity continued to expand slowly. The slight decrease in GDP in the first half of
the year gave way to an increase in the third quarter in conjunction with the world recovery. Unlike the
other main euro-area countries, Italy recorded a halt in growth in the last quarter as household
spending and above all exports declined. Manufacturing activity followed a similar pattern.
Innovation
Italy performs relatively poorly on the European Innovation Scoreboard, with only three indicators
above the EU mean on the 2003 Scoreboard: the first is the share of high-tech venture capital
investment that measures the relative supply of private venture capital to new technology-based firms,
the second and the third are the sales of new to market products (both manufacturing and services)
1
This paragraph is based on: Bank of Italy (2004), Ordinary general meeting of shareholders held in
Rome on 31 may 2004. The governor’s concluding remarks
1
European Trend Chart on Innovation
that determine the turnover of new or significantly improved products, which are also new to the
market, as a percentage of total turnover.
Areas of significant concern are the number of high-tech patent applications, early stage venture
capital and lifelong learning, all below the EU mean and falling further behind. However, when we
recall that currently the Scoreboard predominantly measures technological innovation, it is apparent
that the strengths of Italy’s traditional and craft-based industries are not fully reflected in these
measures.
In regional terms, the Scoreboard shows that innovative capacity – as with most Member States – is
concentrated in just a few regions, with Lombardy (centred on Milan), Piedmont (Turin) and Lazio
(Rome) being the leading regions. One bright spot is the level of employment in medium and hightech manufacturing, with Piedmont and Lombardy among the top regions in the European Union.
However, even Italy’s strongest region, Lombardy, comes out below the strongest regions of the
majority of other Member States.
Table 1 : Comparable indicators of economic performance
Indicator
GDP
per
capita
in
Purchasing
Power
Standards (PPS), (EU-25
= 100)
Growth rate of GDP at
constant prices (1995) percentage change on
previous year
GDP in Purchasing Power
Standards (PPS) per
person employed (EU-15
= 100)
Total employment rate
(percent)
Life-long learning: percent
of the adult population
aged
25
to
64
participating in education
and training
Total unemployment rate
(percent)
R&D expenditure as a
percent of GDP: all
sectors
R&D expenditure as a
percent of GDP: business
enterprise
R&D expenditure as a
percent
of
GDP:
government
R&D expenditure as a
percent of GDP: higher
education
Public expenditure on
education
as
a
percentage of GDP
* Forecast
° Estimated value
# 2001
Italy
EU-15 average
2000
2002
Source
109.1*
109.9
109.4
Eurostat
3.0
0.4
3.6
1.0
Eurostat
111.0
105.2*
100.0
100.0
Eurostat
53.7
55.5
63.4
64.3
Eurostat
5.5
4.6
8.5°
8.5
Eurostat
10.4
9.0
7.8
7.7
Eurostat
1.07
1.11#
1.95°
1.99°
Eurostat
0.53
0.56#
1.27°
1.30°
Eurostat
0.20
0.22#
0.26°
0.26°
Eurostat
0.38
--
0.40°
0.42°
Eurostat
4.57
4.98
4.99°
5.08°#
Eurostat
2000
2002
111.3
2
European Trend Chart on Innovation
The average relative trends are above the EU mean for the following indicators:
• The supply of new graduates with training in Science & Engineering and the population with
tertiary education; these trends confirm the positive direction of the reforms undertaken in the
higher education system.
• Employment in medium-high and high-tech manufacturing; this means that the share of the
manufacturing economy that is based on continual innovation through creative, inventive activity is
increasing.
• Both public and business R&D expenditures; these are important signs of the concrete public and
private commitment to research
• ICT expenditures; this shows the results of the efforts provided by the Government towards ICT
diffusion as a fundamental feature of a knowledge-based economy.
Chart 1. European Innovation Scoreboard 2003
Trend results for ITALY
120
Moving ahead
Losing momentum
Percent difference from EU mean
100
1.1 New S&E graduates
1.2 Population with tertiary
education
1.3 Lifelong learning
1.4 Employment share
medium/high-tech
manufacturing
1.5 Employment share
high-tech services
1.4
1.5
80
2.1
4.5
2.1 Public R&D
2.2 Business R&D
2.3 .1 EPO hi-tech patents
2.3.2 USPTO hi-tech
patents
2.4.1 EPO patents
2.4.2 USPTO patents
4.6
60
1.3
1.2
2.4.1
40
2.2
2.4.2
4.2
1.1
4.2 Early-stage venture
capital
4.5 ICT expenditures
4.6 Value-added share
high-tech
manufacturing
2.3.2
2.3.1
20
0
Catching up
Falling further behind
-50
-40
-30
-20
-10
0
10
20
Percent difference from EU trend growth
3
European Trend Chart on Innovation
Lisbon Strategy
Achievements
Shortcomings
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
Highest increase in business investment
(1999- 2002)
Medium-term pension reform plan announced
in Autumn 2003
Measures taken to increase the flexibility of
the labour market
Reform of the primary and secondary level
education system, implemented, and increase
in the level of youth educational attainment
(1999-2003)
Reduction in Internal Market transposition,
and among three best for transposition of
‘Lisbon’ directives
ƒ
ƒ
ƒ
ƒ
Lowest total (55.5 percent) and female (42
percent) employment rate in the EU, with the
highest rate of long term unemployment at 5.3
percent
Significant decline in labour productivity
between 1999 and 2003
Lasting budgetary consolidation still to be
achieved and long term sustainability of public
finances uncertain
Slow liberalisation of the service sector and of
the energy markets
High
number
of
infringements
for
misapplication of Internal Market rules and
high transposition deficit on the Internal
Market directives
Source: Brussels, 20.2.2004 COM (2004) 29 final/2 Report from the Commission to the spring
European Council. Delivering Lisbon reforms for the enlarged Union
It is a common opinion (Confindustria, Trade Unions, Bank of Italy, etc.) that basic research,
reorganised according to the needs of an advanced nation, and, in a shorter-term perspective, a more
intensive and pervasive use of the new technologies are crucial for the growth of the Italian economy
and for Italy to be a player in an ever-more competitive world arena.
Table 2 : National Innovation SWOT overview
Strengths
•
Systematic attention to SMEs needs.
•
Systematic attention to co-operation amongst
firms and between firms and other institutions.
•
More measures based on automatic
mechanisms and various simplifications of the
application procedures.
•
In general, an articulated set of measures to
encourage innovation and technology.
Opportunities
•
The reform of the higher education system.
•
The new ‘vision’ for the Structural Funds after
2007 (cohesion + competitiveness).
Weaknesses
•
Focus on the development of SMEs in
traditional sectors more than the rise of
technologically leading SMEs.
•
Too much process-innovation, and hence
labour-saving, rather than product innovations
•
Partnerships involving national partners rather
than European or international ones.
•
Public and private research systems: the two
are still fairly detached from one another.
•
Differences in the ability of the regional
administrations to manage the R&I resources.
•
Problems with the practical implementation of
these instruments (lack of resources; delays
in availability; delays in the adoption of the
necessary regulations to launch the
instruments; difficulties on the part of the
Public Administration offices in organising and
managing the instruments due to bureaucratic
sluggishness or insufficient organisational
resources).
Threats
•
Constraints to public expenditure due to the
rules under the Stability Pact.
•
Increasing competition of the new EU
member states in terms of high-tech
investments attraction.
4
European Trend Chart on Innovation
1.2 Innovation governance system
1.2.1
The national innovation system
The Italian R&D and Innovation system basically consists of three groups of organisation: universities,
public research agencies and institutions, and enterprises. Private non-profit organisations at present
are rather few but rapidly growing in number and relevance.
The major public research agencies are: the National Research Council (CNR), which is engaged in
general research, the National Agency for New Technologies, Energy and Environment (ENEA),
which is concerned with energy, environment and technological innovation; the National Institute of
Nuclear Physics (INFN), which deals with high-energy physics, the Italian Space Agency (ASI), which
supports and co-ordinates research and industrial activities in the space field.
Various ministries have an interest in research in specific sectors and run appropriate research
bodies: for example, the Ministry of Health uses the Higher Institute of Health (ISS) for medical,
pharmacological and environmental research, the Ministry of Communications calls on the Higher
Institute for Posts and Telecommunications for research in this field, the Ministry of Productive
Activities runs a network of experimental stations in support of specific productions (paper, glass,
etc.), the Ministry of Agricultural Policies supports various experimental institutes. Innovation in the
business enterprise sector is conducted by around 36,000 enterprises (38 percent of the total
industrial sector).
These three groups of organisations display a limited degree of interaction among each other; this
feature is considered a weak point of the Italian national system of innovation and various steps have
been taken over the years to foster cooperation.
If the Italian R&D system is compared to other advanced countries, two differences stand out: the
large role played by the public sector both in supporting and in performing R&D, and the large share
of State-owned enterprises in high-tech sectors - even though a privatisation process is under way.
Public research agencies are highly specialised scientific institutions. Most of them are singlediscipline agencies that carry out R&D and provide various government organisations with services in
their particular field. The agencies fund, plan and manage research programmes aimed at the
objectives identified by the Government. They also implement the national sectoral plans and finance
and manage the research programmes associated with support activities for agriculture, industry,
health services, infrastructures, and so on.
Key actors in the Italian System of Innovation
MIUR - MINISTRY OF
EDUCATION,
UNIVERSITY AND
RESEARCH
MINISTRY OF
PRODUCTIVE
ACTIVITIES
MINISTER FOR
INNOVATION AND
NEW TECHNOLOGIES
MINISTRIES
The MIUR is responsible for promoting education and scientific and technological research,
and guiding and co-ordinating universities and research bodies
The Ministry of Productive Activities is responsible for promoting the development of
productive activities, including commerce, insurance, energy and tourism.
The role of the new Minister for Innovation and New Technologies is to put together the
best skills and experiences at national and international level in order to elaborate a
strategy for the development of the Information Society for the Country.
The main objectives of the Minister are:
 Digitalisation of the Public Administration
 Information Society: proposal for national indicators
 Broad Band diffusion: results and proposal from the working group
 E-government for development
PUBLIC RESEARCH AGENCIES
5
European Trend Chart on Innovation
CNR - NATIONAL
RESEARCH COUNCIL
ASI - ITALIAN SPACE
AGENCY
ENEA
INFN - NATIONAL
INSTITUTE FOR
NUCLEAR PHYSICS
INFM - NATIONAL
INSTITUTE FOR THE
PHYSICS OF MATTER
Set up in 1923, CNR has been supervised by the MIUR since 1989.
It aims at:
 Supporting scientific and technological research (basic and mission-oriented) through
both its research establishments and the financing of research carried out by scientific
institutes and individual researchers;
 Transferring its research results to industry, services and government;
 Providing advice to the government;
 Granting scholarships for training in research.
CNR has for a long time (1923 to 1989) been in charge of the co-ordination and the support
of public R&D in Italy. In the 1990s its co-ordination function was progressively moved to
MURST (now MIUR).
CNR is mainly funded by the Italian Government, but it also receives funds from the
European Commission and other national and international organisations.
The Italian Space Agency was established in 1988 to co-ordinate all space activities.
ASI is responsible for planning scientific, technological and applications programmes in the
space sector as well as to improve the expertise and competitiveness of the Italian
aerospace industry. It is also an instrument for Italy to participate in the European Space
Agency (ESA) programmes.
ENEA is concerned with energy, environment and technological innovation.
The National Committee for Nuclear Energy in 1982 was transformed into ENEA. ENEA is
a public-law body responsible for promoting scientific and technological development.
After the national referendum of 1987, which put a halt to the nuclear fission activities in
Italy, ENEA's mission was widened to also cover environmental research and the
promotion of innovation in industry and in the services.
In 1991 a new law established that ENEA's daily activities should be covered by the
ordinary financial transfer from Government, while targeted research and technology
transfer activities should be financed by contracts placed to ENEA by various Ministries
and private and public ‘customers’. It operates in close collaboration with firms and
industrial districts. Its activities can be summarised as follows:
 Scientific research;
 Support and technical assistance for ministries, regions, provinces and municipalities;
 Diffusion of research results and organisation of courses and seminars.
INFN was founded in 1951, was recognised as a public-law body with its own budget in
1971. Its objective is to carry out both experimental and theoretical basic research into
fundamental interactions, in particular in the field of particle and nuclear physics. This
entails an ever greater use of highly advanced technologies, which for the most part the
Institute develops itself by means of parallel R&D programmes in technological fields.
Its activities are mostly carried out within international projects and institutions, with CERN
playing a key role.
A close co-operation is in place between the Institute and the universities. This has been
an integral part of INFN policy since its foundation. The Institute therefore operates via both
its own personnel and university staff.
The National Institute for the Physics of Matter (INFM) is the most recently established
government agency (1995) as a transformation of the pre-existing Inter-university
Consortium of Physics of Matter. It carries out interdisciplinary research (microelectronics,
new materials, telecommunications) mostly in co-operation with university and takes part to
the international activities, in particular to the Trieste and Grenoble synchrotrons.
The following organisational chart provides a graphic representation of the actors described in the
table.
6
European Trend Chart on Innovation
1.2.2
Innovation policy making and delivery structures
Key actors in the Italian System of Innovation
PARLIAMENT
THE 20
REGIONAL
INTERMINISTERIAL
COMMITTEE FOR
ECONOMIC
PLANNING
GOVERNMENT
GOVERNMENTS
MINISTRY OF
EDUCATION,
UNIVERSITY AND
RESEARCH
MINISTRY OF
PRODUCTIVE
ACTIVITIES
NATIONAL
RESEARCH
COUNCIL
MINISTER OF
INNOVATION AND NEW
TECHNOLOGIES
OTHER
MINISTRIES
ENEA
ITALIAN
SPACE
AGENCY
NATIONAL
INSTITUTE FOR
NUCLEAR
PHYSICS
OTHERS (E.G.
NATIONAL INSTITUTE
FOR THE PHYSICS
OF MATTER)
7
European Trend Chart on Innovation
When elected in May 2001, the new Government made economic growth a key priority, including
improving Italy’s innovation competence, and set ambitious targets for administrative simplification.
One of the first moves was to reorganise the structure of Government so that the ministries
responsible for education, and for universities and research were amalgamated. Today, the main
ministries with responsibilities in the innovation field are the Ministry of Education, Universities and
Research (MIUR) and the Ministry of Productive Activities.
Although measures to support industry are the primary responsibility of the Ministry of Productive
Activities, the situation is complicated through the devolution of competencies to the regional
authorities. Regions now have a far greater ability to set their own innovation and industrial policy
priorities, although they operate with restricted finances.
In recent years, a number of tax incentives have been introduced at national level to encourage firms
to innovate, in particular tax deductions for investment in new machinery and training of staff.
Simplifying the process of starting a company also makes it easier for entrepreneurs. One-stop shops
for those planning to launch manufacturing firms now operate in over two-thirds of Italian
municipalities.
The mission of universities in Italy has been reformed in the past few years as well. Until recently,
teaching and research staff in public organisations were restricted from holding positions in private
companies, which acted as a significant barrier to technology transfer and spin-offs from universities
and public research centres. Now this restriction no longer applies and, at the same time, universities
have gained much greater autonomy.
The new system is designed to encourage universities to reorientate themselves to the needs of
industry and society, in addition to their educational and research roles. Equally important in
encouraging technology transfer has been the recent reform of the intellectual property rights system.
As a result, researchers working in public institutions are now the owners of their inventions, rather
than the institutions, and are entitled to receive remuneration for any industrial exploitation of their
results.
CIPE - INTERMINISTERIAL COMMITTEE
PROGRAMMAZIONE ECONOMICA)
FOR
ECONOMIC PLANNING (COMITATO INTERMINISTERIALE
PER LA
According to the general strategies defined by the Government and on the basis of the proposals
made by the administrations, the Interministerial Committee for Economic Planning (CIPE) develops
functions of co-ordination in the field of planning and national economic policy, as well as of coordination of the national economic policy with the community policies.
The fourth Commission of the CIPE has a strong influence on decisions concerning a part of
innovation policy, that related to research and training. Its objectives are to:
•
•
Evaluate, before the DPEF (Economic and Financial Planning Document) approval, the strategic
priorities set out by the Government in the field of scientific and technological research;
Approve the PNR (National Research Plan) and to evaluate its implementation. The financial
provision for the Plan co-ordinates different instruments provided by various administrations:
ƒ Ordinary funding to public research institutions determined on the basis of their relevant multiannual plans.
ƒ Fund for the Support of Industrial Research (FAR).
ƒ Special Supplementary Fund for Research (FISR).
ƒ Fund for Technological Innovation (FIT- Ministry for Productive Activities).
ƒ Fund for Investments in Basic Research (FIRB).
ƒ Other financial sources from the Ministries of Infrastructures and Transports, Environment
and Protection of the Territory, Productive Activities, Agriculture and Forestry Policy, for
investments in R&D initiatives;
8
European Trend Chart on Innovation
•
•
Ensure co-ordination between the PNR and the plans/programmes delivered by the public
administrations;
Examine the financial allocation for research made by the public administrations.
THE REGIONS
The realisation of the devolution process in Italy (reform of Title V of the Constitution) has meant an
increased autonomy for the regional governments and more power in terms of industrial and
innovation policies to the regional level. This is witnessed, for example, in the new structural policies
(in particular in the Community Support Framework – CSF - Objective 1, 2000-2006). In this field, the
Government has stimulated and co-ordinated regional initiatives and regional actors to devise and
implement integrated innovation programmes at the regional level through the regional Innovation
Plans and the Information Society Plans.
Every Region (see the example below: Puglia’s Plan) is now defining its own strategy (even in the
field of innovation policies). The Central Government (MIUR) keeps the process monitored in order to:
a) control its implementation; b) transfer best practices from one region to the others.
Puglia’s plan. The regional plan for supporting research and technological development in Puglia
focuses on improving business capacity to innovate.
In common with other regions in the south, Puglia’s regional plan for Innovation concentrates on
industrial support and, with much of the support coming from the European Regional Development
Fund (ERDF), creating durable economic development is at its heart. It is part of an overall structure
which sees regions’ parallel plans tied in with a national research plan. In the current programme
Puglia’s priorities are as follows:
1. Support for innovative programmes and technology transfer to improve the region’s business fabric:
• Development of innovative projects
• Transfer of research results to SMEs and the craft sector
• Support for the creation of technological ‘poles’, or clusters
• Support for scientific/technological audits in SMEs
2. Development of highly skilled human resources to support the regional innovation system:
• Qualifications and training for managers in firms seeking technologies
• Qualifications and training for researchers offering technologies, e.g. spin-offs
• Training of public authorities’ staff for the promotion of innovation
• Support for innovation in the region’s further and higher education institutes
• Support for the creation of innovative companies
3. Establishment of a regional Innovation Observatory
For 2003, priority 1 had a budget of EUR 27 million, and priority 2, EUR 44 million, distributed as the
result of calls for proposals. The region can also be expected to spend several times this amount
through direct grants and contracts for activities in these same fields. Around EUR 3 million is
budgeted for priority 3.
Source: Innovation & Technology Transfer n.4/03
1.2.3
Regional innovation systems and policies
Since 1970, the regional governments have increasingly covered competencies related to economic
planning, including industrial and innovation policy. Some of them have been particularly active in
creating a favourable context for local industry and economic development. Apart from regional laws
supporting innovation or other aspects of industrial development (especially in favour of SMEs), some
interventions included the promotion of services to industries and firms, like the creation of financial
regional companies to support local investments, promotion of consortia, or other types of services.
The role of the regional governments became even more important in the 1990s, especially because
of the larger amount of resources that were devoted to the regions, primarily through the European
Structural Funds.
9
European Trend Chart on Innovation
There are some critical points, however, that need to be brought up. In the first place, the more
advanced regions, both in terms of output per capita and R&D- or technology-intensity, have been
more active than the other regions in implementing measures that encouraged innovation. This is not
surprising. However, what is often less clearly noticed is that differences in the abilities of the local
administrations in managing the policy programmes and the related resources can give rise to greater
divergence in growth and development opportunities across regions. To put it differently, one natural
implication of the decentralisation of functions to the local governments is that existing differences in
the abilities of the local Public Administrations to develop and implement strategies for local growth
will cumulate with natural differences in growth opportunities and industrial development.
The issue is not simply one of differences in the ability to introduce relevant measures for innovation
or local industrial development. It is also one of differences in the ability to implement these
measures. This involves the creation of agencies, which has been another instrument used by
Regional Administrations to provide effective services and opportunities to the local firms. The
performances of these institutions are very different among the various regions. Clearly, this
discussion extends to differences in the ability of the Regional Administrations to design industrial or
technology policy strategies related to the use of instruments and resources provided by the EU. As
these resources are increasingly becoming a critical means for the functioning and implementation of
these policies, gaps in the ability to use these funds are a relevant dimension of the dynamics of the
overall European cohesion process.
One way to address this problem is to introduce a greater automatism and bureaucratically less
involved instruments in the regional measures. The objective should be to create a shorter distance
between the instruments and their beneficiaries. This would better align the incentives of the
legislator with those of the beneficiaries without confusing them with the system of incentives of the
bureaucratic structures. But this also means that the Regional Administrations should probably move
away from policies based on the creation of ‘agencies’ towards policies where the incentives take the
form of indirect measures such as tax credits, or they are based on simple procedures like those of
the Law N.488 or the Sabatini Law.
An example from Emilia Romagna: the Spinner initiative
Most funding initiatives which support spin-off companies target their funds on the fledgling firms. An
alternative model – where funding is provided for individuals setting up a company to support
themselves and pay for services – is the basis of the Spinner initiative in the Emilia-Romagna region.
Spinner is the first experiment in using European Social Fund (ESF) money – designed to improve
employment prospects across Europe’s regions – in this way.
The two objectives of Spinner are: first, to help students and researchers who want to set up spin-off
companies, and second, to support technology transfer from universities to firms in the region.
Spinner grants go to people: they receive a fellowship of EUR 1,300 per month for a maximum of one
year. In addition, they can get extra money for travel – to attend conferences and present their
project, for example – or to buy services such as training, business plan writing, marketing or legal
assistance, within specified limits.’
Spinner funds may go to employed or unemployed people, and there are no age limits. But the main
target is graduate students and researchers. Typically, Spinner grants are awarded to groups of three
to six people working in a research team.
Spinner is run by a consortium of three organisations: ASTER, the region’s technological
development agency; Sviluppo Italia, the public-sector national development agency; and the Alma
Mater Foundation of the University of Bologna. With a budget of EUR 15 million for its first three years
(2000-03), Spinner is now being extended for a further three years, again with EUR 15 million. Of this,
the ESF provides 45 percent, with 11 percent from the region and the remainder from the national
government.
Source: Innovation & Technology Transfer n.4/03
10
European Trend Chart on Innovation
2. Innovation policy in Italy
2.1 Innovation policy framework
Italy has developed a fairly articulated set of measures to encourage innovation and technology
transfer. Some of these instruments are also innovative. Similar considerations can be made for the
regions. In spite of important differences across them, especially between North and South, various
regional governments have developed several instruments, measures, and actions to encourage local
economic development, including interventions focused on technology transfer and innovation.
However, the critical problem of the Italian policies, both at the regional and national levels, is the
practical implementation of these instruments. On many occasions, innovative policy tools, for
technology or other industrial policies, could not be effectively implemented because of the lack of
resources, delays in their availability, delays in the adoption of the necessary regulations to launch the
instruments, difficulties on the part of the Public Administration offices in organising and managing the
instruments due to bureaucratic sluggishness or because they did not have sufficient organisational
resources.
For these reasons, Italy is gradually introducing measures based on more automatic mechanisms
(such as tax credits), and in recent years has on many occasions introduced various simplifications of
the application procedures. The latter have greatly encouraged the participation of SMEs in
technology and other programmes.
In spite of systematic attempts to link the public and private research systems, the two are still fairly
detached from one another. The former is still too focused on research of an academic nature, and
more generally detached from the needs of industry. The problem can only partly be attributed to the
supply of research by the public system. To a large extent, it is related to the lack of an advanced
demand for scientific and technological research by the firms.
The Italian regional administrations are gradually learning how to deal with their increasing powers
and functions, particularly in industrial and technology policy, and they are learning how to manage
their increased availability of resources coming from the European Structural Funds. The increased
functions and resources available to the regions have highlighted differences in the ability of the
regional administrations to manage these resources and the related plans.
Italy has paid systematic attention to SMEs. This is true of both national and regional policies.
Moreover, although most of the interventions focused on investment, a good number of them focused
on research, innovation, and the adoption of new technologies, including technologies embodied in
equipment.
Italy has also paid systematic attention to co-operation among firms and between firms and other
institutions. For example, the various measures of the Law N.46 of 1982, which is the main national
instrument to support research and innovation, require that the projects be performed in partnership.
However, most of the partnerships promoted by the Italian ST&I policy instruments typically involve
national partners rather than European or international ones.
As far as higher education is concerned, a substantial reform of the university sector was approved in
1999 and introduced with the academic year 2001/2.
The first objective of the reform is the implementation of teaching autonomy. This means that
universities lay down the regulations for their degree courses, establishing the names and learning
outcomes, the general framework for different teaching/learning activities that must be included in the
curriculum, the credits allocated to each subject course and the type of final exam to obtain the
qualification.
11
European Trend Chart on Innovation
The second objective of the reform is to bring the Italian Higher Education System in line with the
European two-tier university model. To meet these objectives, Italy has reformed its higher education
in two distinct sectors – the university and the non-university sector - the latter comprising mainly arts,
music and language mediation as well as post secondary technical education and training (Istruzione
e Formazione tecnica superiore).
The third objective of the reform is to make the Italian university system more student-centred. It has
introduced a system of credits (Crediti Formativi Universitari) based on the European Credit Transfer
System (ECTS). One of the objectives of this new credit system is to reduce the gap between legal
and real duration of university courses and curb the dropout rate.
The fourth objective of the reform is to increase flexibility and quality within the system. This means
simplified procedures that enable universities to adapt their courses according to demands for
education and to changes in the labour market along with effective quality assessment systems.
Table 3: main policy documents since 2000
Title of document (in Date (of approval, Organisation
English)
publication, etc.) responsible (Ministry,
etc.)
National
research 2002
MIUR
plan
Action Plan for ICT 2003
Minister for Innovation
Innovation in the
and Technology and
Enterprises
the
Ministry
of
Productive Activities
Legal status (Law,
Government Decision,
strategy paper, etc.)
Government Decision
Government Decision
Comments (Budget
set-aside,
new
measures, etc.)
Strategic approach to
R&I policy
Strategic
joined
approach
to
the
diffusion of ICT in the
enterprises
2.2 Policy events & policy debates
Innovation network
Confindustria, Italy’s main employers’ organisation, has created an innovation network (Rete
dell’Innovazione) based on a web portal, which allows members to access information on innovation.
It provides a central point of reference, accessible to all of the 120,000 firms associated with
Confindustria.’ Each of the member associations can upload information to the portal, such as
technology offers or requests, and guides on issues such as finding finance, venture capital and
intellectual property rights. Some members may choose only to use parts of the portal, but the system
allows this flexibility so that all members can benefit as much as possible. Of course, some members
already have their own websites providing similar information, and the portal complements, rather
than replaces, these.
One example of co-operation through the network so far has been in putting together proposals for
collective research projects for the Sixth Framework Programme – where a group of SMEs or a trade
association gets a research organisation to work on a problem common to the group.
A Research Day has been organised by Confindustria in order to draw attention to the problems of
research and innovation in Italy. The importance of the Lisbon objectives has been stressed, and the
weak national performance in this field underlined.
Confindustria held its biannual conference on 2-3 April 2004. The theme was 'The challenge of
growth' and Confindustria's outgoing president, Antonio D’Amato, made an assessment of the past
four years of activity. Revitalising Italy’s competitiveness was the priority task that Mr D'Amato handed
on to his successor, Luca Cordero di Montezemolo.
12
European Trend Chart on Innovation
Speeches were made on behalf of the Government by Prime Minister Silvio Berlusconi, the Minister
for labour and social policies, Roberto Maroni, and the Minister for the economy, Giulio Tremonti.
Attended by 5,000 employers' delegates, the conference examined the challenges raised by the
international economic situation and sought to identify the crucial features which may enable Italian
industry to 'emerge stronger and more dynamic' from its current economic difficulties - a hope
expressed at the conference by Antonio D’Amato in his last public speech as president of
Confindustria. Having been in office since May 2000, Mr D’Amato recently stood down, with Luca
Cordero di Montezemolo appointed to replace him.
The main themes discussed at the conference were as follows.
• Competitiveness. According to research by Confindustria, of all European countries Italy creates
the largest number of new firms every year and with the highest survival rate. However, it is also a
country in which monopolies and 'activities insulated against the rules of competition' still persist.
According to Mr D’Amato, the revival of investment necessary to increase the competitiveness of
Italy’s industrial system requires a marked reduction in the taxes levied on businesses - a
measure, he stated, which has not yet been implemented, despite the Government’s promises.
• Economic situation. Stagnating consumption, falling exports, and business confidence at an alltime low are, according to Confindustria, the main aspects to be taken into account when
assessing Italy’s economic prospects. The director general of Confindustria, Stefano Parisi,
stressed that while consumption grew by 1.3 percent in 2003, productivity has undergone a
'dramatic collapse'. In 2003, labour productivity fell by 0.5 percent, compared with increases of 1.7
percent in Germany, 1.2 percent in the UK and 3.1 percent in the US. Paolo Garonna, director of
the Confindustria’s research department, estimated that even if all went well, GDP in 2004 will
increase by no more than one percent, as opposed to the 1.6 percent forecast made in December
2003. Confindustria thus emphasised the two-fold risk of 'impoverishment' due to low productivity
and low investment. Investments in Italy have fallen by 2.1 percent since 2003, compared with a
European average decrease of 0.7 percent and four percent growth achieved by the US. 'Were
productivity and investment to revive', Mr Garonna said, 'productive activity would certainly
recover, with a consequent improvement in consumption and living standards'.
• Benchmarking. The Confindustria research department presented figures on Italy’s competitive
capacity and that of the other industrialised countries. Looking at foreign direct investments (FDI)
across the world, Italy’s FDI/GDP ratio continues to be among the lowest (11 percent for outgoing
FDI and 17 percent for incoming FDI, compared with France’s 22 percent and 37 percent, and
Germany’s 22 percent and 30 percent, respectively). The degree of internationalisation of Italy’s
banking system has declined sharply, with Italy standing in fourth place in this respect behind the
UK, Germany and France (2003). Compared with the other European countries, Italy still has a
relatively solid productive structure based on small and medium-sized firms: these have increased
in number, created employment, and contributed significantly to economic growth. On the other
hand, large companies in Italy are still relatively weak and continue to shed jobs. As regards the
quality of 'human capital', Italy lies below the European average, in that its labour force largely
consists of workers with medium-to-low skills.
• Labour market. Mr D’Amato stated that Confindustria played a vital role, through social dialogue,
in achieving reform of the labour market through the enactment in 2003 of the 'Biagi law'. He
reaffirmed the validity of Confindustria’s decisions in this area, including support for the
controversial amendment of Article 18 of Law 300/1970. Mr D’Amato declared that he accepted
full responsibility for backing such an amendment and maintained that the dispute over Article 18
during 2002 was crucial for achieving reform of the labour market.
• Relations with the trade unions. Mr D’Amato declared that the present dialogue between the
employers’ representatives and those trade unions willing to accept such dialogue offers 'an
opportunity to undertake further reforms, from social security to welfare, which will continue to
foster modernisation of the country.'
• Research. Mr D’Amato reiterated the need for investment in research and reminded his audience
of the objectives set by the Lisbon European Council in March 2000 to reach a level of three
percent of GDP invested in research and development by 2010, whereas at present Italy invests
less than one percent.
13
European Trend Chart on Innovation
The Trade unions’ comments focused in particular on future prospects for dialogue with Confindustria.
Guglielmo Epifani, the Secretary General of the General Confederation of Italian Workers
(Confederazione generale italiana del lavoro, Cgil), expressed his hope that the change of leadership
in Confindustria would initiate joint discussions on the theme of innovation, since 'research,
development and technological development are challenges that face us all'. The Secretary General
of the Italian Confederation of Workers' Unions (Confederazione italiana sindacati lavoratori, Cisl),
Savino Pezzotta, hoped that 'the new president of Confindustria would establish close and important
dialogue with the trade unions'.
In order to halt the decline in the scientific faculties registrations, the Ministry of University and
Research, Confindustria and the national conference of the science faculties deans launched the
project Scientific Degrees, that aims at: 1) providing more guidance in schools; 2) expanding stages
and post-degree courses; 3) redefining scientific degrees in order to make them more adherent to the
professional requirements of the market.
These activities can count on a financing of EUR 8,5 million for three years; they will involve 14,000
secondary school teachers and 10,000 students.
At the local level, the Ministry will select ten projects proposed by the universities in collaboration with
the schools and the associations of entrepreneurs. The initiatives will be sustained by the Fund for the
university system with EUR 6,5 million for the period 2004-2006.
2.3 Key developments in innovation policy measures
The Minister for Education, University and Research Letizia Moratti and the Minister for the Economy
Giulio Tremonti set up the Italian Institute of Technology, based in Genova. The centre will deal
with technological and scientific research and technological education and training as a part of a wider
process of reform that the Government is undertaking for the modernisation of the national scientific
and technological system. The innovative aspects that will characterise the Foundation are:
•
•
•
•
Mission: the Centre will favour the transition of the economic system towards productions with
higher technological content and added value, as well as the collaboration among groups of
excellence that operate in universities and public research centres and the productive system of
the country;
Activities: the Centre will start with the following sectors: systems of production (microelectronics,
new materials, ICT) health and biotechnologies;
Public-private: the juridical nature of the Foundation will favour the promotion of collaborations
between public and private research;
Board: the direction of this initiative will be entrusted to qualified members of the scientific,
economic, industrial and financial Italian and international world.
The start-up phase that will last for two years will be managed by a Commissioner, jointly named by
the two Ministers. The initial budget of the Foundation amounts to EUR 50 million for 2004 and EUR
100 million a year for the next ten years.
http://www.istruzione.it/prehome/comunicati/2004/160204_2.shtml
A Framework Agreement was agreed with the Ministry of Education, Universities and Research
(MIUR), signed by Minister Moratti and EIB President Maystadt. This Framework Agreement aims to
reinforce R&D activity as the basis for economic growth in Europe. This strategy, endorsed by the EU
Heads of State or Government at the December 2003 European Council, provides for EIB financing of
around EUR 40 billion in the EU by 2010.
14
European Trend Chart on Innovation
The Bank’s ‘Innovation 2000 Initiative’ supports investments into five areas crucial for
competitiveness:
• Human capital formation.
• R&D by co-financing public, private-public or private sectors research programmes, corporate
investment in research, research infrastructures, centres of excellence, and other measures to
enable SME to obtain access to research programmes.
• Information and communication technology network by financing transeuropean broadband,
multimedia networks.
• Diffusion of innovation by financing the use of information technologies to bring Europe’s citizens
closer to public services, and to help companies with advanced information technologies.
• Development of SMEs by strengthening venture capital support for the development of innovative
SMEs, fostering science parks and launching new products.
The Government has recently adopted a new initiative: the creation of ‘technological’ districts in
some carefully selected geographical locations in Italy.
The main criteria adopted for the creation of a new ‘technological district’ include:
• The availability of a well structured project incorporating extended foresight studies in the chosen
area of interest, the definition of vision, mission and of the regulatory processes for the
management, rules for the protection and distribution of intellectual property.
• Coherence of the project with the ‘guidelines’ of the national policy for industrial and scientific
development.
• The participation in the district of public stakeholders (university and/or research bodies) provided
with the necessary experience in the field of interest and a background of collaboration with
industrial partners.
• The presence in the proposed district of relevant private stakeholders active in the field, i.e.
industries with a long record of activity in the field, willing to participate in joint projects with public
actors, and whose activity is mainly located in the same regional and local environment.
• The existence of a group of individual leaders, with proven experience in the field, belonging to
private and public partners.
• A well-defined structure for the governance of the district, which should involve the main
stakeholders and regional and local institutions (i.e. regional or municipal authorities).
• A definite and explicit participation of private foundations, venture capital or similar organisations
able to provide seed money or early stage capital to foster spin off creation.
• A definite ‘ad hoc’ created legal entity to represent, administer, and manage the new district.
So far, six districts have been created in various Italian regions.
Piedmont Region
Fields: Telecommunications, multimedia technologies, wireless, new optical and electronic devices.
Main academic and industrial partners:
University of Turin, Politechnic of Turin, Alenia Aeronautica, Fiat, Motorola Electronics, ST
Microelectronics, Telecom.
Emilia-Romagna Region
Main technological fields: mechanical engineering (mechatronics and automation); sensors, materials,
surfaces nanofabrication, nanomechanics.
Partners: Universities of Modena, Bologna, Ferrara, Parma, with around 130 industries such as:
Alstom, Lamborghini, Comer Industries, De Tomaso, DTM Technologies, Ducati Corse, Ducati Motor,
Electrolux, Ferrari, Fiamm, Fiat Gm Powetrain.
Veneto Region
Fields: nanotechnologies and new materials.
15
European Trend Chart on Innovation
Pertners: Universities of Padova, Venezia e Verona, CNR, l’INFM, il Consorzio Venezia Ricerche,
Fiamm Spa, Pavan Spa.
Campania Region.
Fields: polimeric materials.
Partners: University ‘Federico II ‘ di Napoli, Cira, Alenia,
Microelectronics, Fincantieri.
Bracco, Elasis,
Pirelli Labs,
ST
Lombardy Region
Fields: biotechnology, ICT, new materials.
Partners: State University of Milan, University of Milano-Bicocca, University Vita e Salute -San
Raffaele, 14 biotech industries.
Sicily Region
Fields: Micro and Nanosystems, (optoelectronics, bioelectronics, biosensors, e bioinformatics,
molecular photonics nanostructured materials).
Partners: Universities of Catania, Messina e Palermo, INFM, ST Microelectronics, IBM, Omnitel,
Nokia, Accent, Wyeth Lederle.
Lazio Region
Fields: Aerospace, Aeronautical technologies, Airports management systems.
Main partners: Finmeccanica, AVIO (ex Fiat AVIO), CNR, l’ENEA, ASI, l’Universities of Roma ‘La
Sapienza’, ‘Tor Vergata’, ‘Roma 3’, University of Cassino, a network of PMI.
A new General Directorate for the internationalisation of scientific and technological research
has been set up at the MIUR.
It includes four departments:
• International strategies and bodies.
• Bilateral scientific cooperation.
• Support to the Italian participation at the European research programmes.
• Aerospace research.
A new law: Tecno-Tremonti – Incentive for Research & Development: For the financial year 2004
it is possible to reduce the taxable income by R&D costs, including those for obtaining of a patent,
equal to 10 percent of the value which can be included among the intangible assets, in addition to the
normal deduction from the depreciation share.
Tax relief for researchers taking up residence in Italy: In order to encourage foreign researchers
to come to Italy, Art.3 of DL 269/2003 has been approved, granting researchers beginning their
research work in Italy - and thus becoming tax-payers in Italy - the facility of paying taxes on only ten
percent of their taxable income as employees or self-employed researchers. In addition their income
is not included in the regional production tax liability. These incentives apply to the tax period during
which the researcher is working as a resident in Italy, and for the following two tax periods.
Table 4 : New and revised Innovation Policy measures over last 12 months
N°
Title
Action plan category Degree of novelty
addressed
IT42
IT43
Agency administering
Tecno-Tremonti
– Taxation
Incentive for Research & Innovation financing
Development
New norm for the specific Ministry of the Economy
reduction of the taxable
income by Research and
Development costs
Tax relief for researchers Mobility of students, A tax reduction will be Ministry of the Economy
taking up residence in research workers and applied
to
the
Italy
teachers
researchers
beginning
Taxation
their research work in
Italy
16
European Trend Chart on Innovation
3. Implementing innovation policy in Italy
3.1 Fostering an innovation culture
This is, in general terms, the least important priority area in Italy. However, it includes some very
crucial objectives pursued by the centre-left Government since 1996, such as the broad reform of the
education system and an increased mobility of students and researchers. The first objective is still
very important, as the new Government elected in May 2001 has recently approved a new reform of
the school system.
3.1.1.
Education and initial and further training.
The centre-left Government elected in 1996 launched a general reform of both the education cycles
and the higher education system. The reform's underlying criteria and its main goals were:
•
•
•
To fully implement the autonomy of universities;
To adopt regulatory provisions other than the traditionally envisaged Acts of Parliament to
regulate large segments of university education and to simplify bureaucratic procedures;
An overall upgrading of university research and education with the relevant facilities and services.
The main aim of the reform of the higher education system in Italy was to reorganise the academic
system by transforming its over-centralised structure and giving administrative and academic
autonomy to each university. An important criticism backing the reform was that there has not been
enough co-operation between industry and universities.
In addition to that, at the end of 2000 the Council of Ministers approved the implementation
programme for the reform of the education cycles. The reform of the Italian school system was part of
a deeper change affecting the public administration system as a whole (see also Public authorities
and support to innovation policy makers). The principles of such reform were listed in the Bassanini
Law (Law 15 March 1997, n. 59). This Law provided that the Government was responsible for passing
legislation to decentralise some administrative functions and tasks to the regions and local authorities,
such as, for example, didactic and organisational autonomy of schools. This was conceived to make
the administration of education more efficient at both central (the Ministry) and local level (the
‘Sovrintendenze Scolastiche’ and the ‘Provveditorati agli Studi’).
In March 2003, the Italian Parliament approved a reform of the school system undertaken by the
centre-right Government. The changes include a new combined school/work path for students
between the ages of 15 and 18, as well as greater choice and decentralisation. Trade unions are
largely opposed to the reform, while employers are in favour. The Government has also announced
its intention to revise again the higher education system, previously reformed by the centre-left
Government elected in 1996.
The Government intends to promote the diffusion and use of information technology to individuals,
households and other non-business entities (schools, libraries, etc.) through initiatives such as the
‘Vola con Internet’ (Fly With The Internet) project, sponsored by the Minister for Information and
Technology, which aims to promote and generate incentives for the use of internet amongst young
people. The initiative is backed by funding approved by the 2003 financial amendment which provides
all teenagers born in 1987 with a subsidy of EUR 175 if they decided to buy a PC with internet
access.
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European Trend Chart on Innovation
3.1.2.
Mobility of students, research workers and teachers
The implementation of this objective, started with Law no 196, 24.06.1997 and Law no 449/97 [IT-2],
is now regulated by the D.L. 297/1999 which covers all MIUR interventions concerning the coordination, promotion and implementation of measures aimed at sustaining research and innovation in
industry by means of a unique fund which absorbs all the previous ones.
Tax relief for researchers taking up residence in Italy
In order to encourage foreign researchers to come to Italy, Art.3 of DL 269/2003 has been approved,
granting researchers beginning their research work in Italy - and thus becoming tax-payers in Italy the facility of paying taxes on only ten percent of their taxable income as employees or as selfemployed researchers. In addition their income is not included in the regional production tax liability.
These incentives apply to the tax period during which the researcher is working as a resident in Italy,
and for the following two tax periods (see also Section 3.2.6 Taxation)
3.1.3.
Raising the awareness of the larger public and involving those
concerned
The main objective of Decree 18.06.1997 [IT-3 and IT-27] was to support the activities aimed at
promoting scientific and technological culture realised, in particular, by:
•
•
•
Institutions and associations with extensive experience in the diffusion of scientific and
technological culture and in the exploitation of the national natural, scientific, technological
and industrial heritage.
Astronomical observatories, botanic gardens and natural and scientific museums.
Institutes, school consortia, student or teacher associations, companies and other entities
Recently, no relevant changes have occurred in this field, which still holds a secondary place on the
Government Agenda.
3.1.4.
Fostering innovative organisational and management practices in
enterprises
This is a minor objective in the Italian framework, and it is mainly pursued through general incentives
to the use of consultancy. (see also Section 3.1.2 ‘Mobility of students, research workers and
teachers’).
In the Mezzogiorno, the 2000-2006 Country Operational Programme (Local Development), for which
the Minister for Productive Activities is responsible, includes several measures providing assistance to
enterprises. Measure 1 of the Programme provides for co-financing for the industrial sector. It will also
include an initiative intended to provide protection for enterprises. This intervention is intended to
promote and support projects that increase innovation and the enterprise’s strategy by providing
specialised advice. The protection concerns the industrial initiative as a whole, from technical aspects
relating to the planned investment, to the introduction of innovative techniques, processes and
products, particularly with regard to those that reduce the impact on the environment, to providing
technical and administrative guidance to the enterprise when it is setting up in its chosen location, and
including help in defining a marketing strategy. The areas to be focused on are innovation, technology
transfer, logistics and organisation, management, administrative support and product marketing.
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European Trend Chart on Innovation
3.1.5.
Public authorities and support to innovation policy makers
The previous centre-left Government launched a general reform of the public administration in which
research and innovation played a key role [IT-9 and IT-10]. In 1997 the Parliament asked the
Government to examine the whole national Science and Technology system in order to identify the
main problems affecting this system. The Ministry of Research identified three main points as the
milestones of the reform process: a) a new organisation of the governance of the public research
system; b) a re-organisation of the public research institutions (in particular of CNR and ENEA); and
c) a revision of the mechanisms for R&D support and technological innovation.
The new Government announced important measures in its ‘One Hundred Days Programme’. One of
the most important ones concerning the public administration at different levels, is the implementation
of the Italian E-Government Action Plan. This Plan was approved on 23 June 2000, in parallel with the
launch of the eEurope 2002 initiative. The original plan had a budget of EUR 689,48 million;
ultimately, the resources currently available for the plan implementation are about EUR 413 million,
drawn from the auctions of the 3G mobile services licences. The Plan entered into the operational
stage, with the launch (February 2002) of the first call for proposals, addressed to Regional and Local
Authorities. Approximately EUR 120 million has been allocated to this call, out of the total EUR 258
million which is available for local government projects. Compared to the original plan, more emphasis
was put on the customer orientation of the innovation projects -multiple delivery channel, user-driven
access metaphors (life episodes) as well as on clearly identifying and measuring results/benefits, and
comparing them to costs.
Another important change concerns the national Electronic Identity Card project. Given its complexity
and long-term achievements, a parallel initiative was designed to allow Local Authorities and other
public bodies to issue smart-cards with a common national interface standard. This should provide for
ubiquitous online customers’ authentication and services access, regardless of the access channel
being used.
3.1.6.
Promotion of clustering and co-operation for innovation
The Law 317 [IT-17], which was approved on the 25 September 1991 (after a four-year passage
through Parliament) and which became law on the 5 October of the same year, was a breakthrough.
For the first time, the legislator sought to define a policy which favoured SMEs and which aimed to
‘promote development, innovation and competitiveness in small enterprises’ by intervening to create
an external environment which was favourable to the development of SME competitiveness, and not
just supporting single innovation or research projects.
The unifying idea that governs the various articles of this law is the desire on the part of the legislator
to promote structural strengthening in small firms within a system of development rather than of
assistance. The fourth article of the law is devoted to consortia and consortia between small firms
‘whose purpose is to supply services, including advanced tertiary services, aimed at promoting
development, both in general and technological, and the rationalisation of production,
commercialisation and management of consortium enterprises’ (article 17).
Law 317/91 was also innovative in the instruments it used giving absolute priority to incentives based
on automatic tax benefits: benefits to firms that invest in innovation (art.6), benefits for research
spending (art.8) and for the acquisition of real services (art.7). The purpose of the legislator was to
create a transparent and automatic system of incentives which would allow firms’ rapid access to the
benefits of the law, in contrast to what had occurred in the past.
The objective of promoting structural relations among firms and between firms and the economic
environment (rather than providing incentives to the single firms) is still very important in the Italian
context. A recent operational example of this approach can be found in the new CSF Objective 1
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European Trend Chart on Innovation
2000-2006, which introduces the so-called ‘PIA - Pacchetti Integrati di Agevolazione’. One of these
PIA is the PIA Networking, aiming at offering support to ‘systems of firms’.
Measure 2 of the National Operational Programme Local Development concerns to the ‘Integrated
incentive plan’ (Pacchetto integrato di agevolazioni – PIA) [IT-25], a measure which allows enterprises
to submit a single, multi-annual development plan to gain access to the financial advantages available
for various instruments. The integration comes from a management model which provides a single
contact point that accepts applications and co-ordinates their evaluation. Thus, a single application
allows enterprises to obtain a series of advantages for different purposes, such as purchasing
machines and equipment for manufacturing or research and development, setting up networks
(possibly linked to the ‘new economy’), purchase services and consultants’ advice on
internationalisation, innovation and training, and building shared infrastructure.
The first implementation of this is ‘PIA Innovation’ which concerns contextual financing of fixed
investments. A second application concerns training.
The last measure planned is ‘PIA Networking’, which was born of the need to make an integrated
incentive plan available not only to stand-alone enterprises, but also to groups of enterprises. PIA
networking is intended for groups which can take advantage of the potential available in the new
network technologies, such as manufacturing, joint ventures where a majority of shares are owned by
individuals residing in objective 1 areas, and consortia for investments in production, either for the
individual members of the consortium or for the shared services and structures, with a specific
concern to the latter’s environmental impact. The aid available is linked to fixed investments, the
purchase of services, training and joint activation of the Guarantee Fund (which is not co-financed).
An effort will be made to ensure that PIA Networking is used to support entrepreneurial initiatives that
fall within the ‘new economy’.
The new Government promoted the Framework Agreements for the Development of Digital Districts in
Southern Italy (Funds of the Inter-ministerial Committee for Economic Planning – CIPE - and of the
Inter-Ministerial Committee for Information Society –CMSI-). The targets of the framework agreements
are local clothing and textile development systems located in areas ranked among objective 1. The
objectives concern:
•
•
•
•
•
•
•
•
Know-how and knowledge exchange.
The implementation of programmes and strategies for the development of the textile and
clothing sector.
Strengthening the competitiveness of southern Italian districts and the potential of the
southern region generally.
Adding value to specific regional, cultural, environmental, human identities, as well as local
production.
The development of small enterprises.
Channelling qualified labour towards activities of innovative research, production and serviceprovision.
The development of existing production structures, especially through reinforcing their
international exposure.
Optimising specialised productive systems’ performances by experimenting and adopting
innovative services aimed at improving product, process and organisational quality.
Long-term benefits include an improvement of the relations and partnerships between different
regional districts. In particular the main benefits are:
•
•
•
The development of reciprocal trust between districts for a more efficient co-operation.
Improving communication and interaction between districts and between clothing and textile
industry entrepreneurs.
Improving the quality and efficacy of the instruments available for territorial development.
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European Trend Chart on Innovation
The project, requiring funding of EUR 9 million, was approved on the 18 March by CMSI. In the
context of the Framework Agreement, the Minister for Innovation and Technology can allocate up to
EUR 18 million for the creation of digital districts.
3.2 Establishing a framework conducive to innovation
Second in terms of relative importance among the priority areas, is one of the key-themes of the
previous Government: the administrative simplification.
3.2.1
Competition.
The OECD (2001) Review of Regulatory Reform in Italy acknowledged the vast distance that has
been covered since Italy began liberalising product markets at the start of the 1990s. This entailed a
sustained programme of privatisation, market opening, and deregulation followed by appropriate reregulation and institution building. However, there is still considerable scope for further improvement,
and raising growth will depend critically on removing the impediments and distortions to competition.
Rigidities and protections have a large influence on the structural features of the Italian economy
impacting upon, amongst other things, the intensity of product market competition, size and growth of
firms, innovative activity, the capacity to attract foreign direct investment and employment growth.
Problems with productivity and growth, and low R&D expenditure, are linked to an industrial structure
heavily weighed towards small enterprises. Despite the large number of firms, the intensity of
competition and rivalry is particularly weak in retail distribution and in professional services. Without
the elimination of entrenched positions and an easing of barriers to entry and firm growth, innovative
activity, one of the main engines of economic growth, is unlikely to thrive in Italy.
3.2.2
Protection of intellectual and industrial property
In recent years, Italy has further increased the protection of intellectual property rights.
• Setting up of 12 Intellectual Property Tribunals. Under Law Decree No. 168 of 27 June 2003, the
Italian Government established 12 Intellectual Property Tribunals (‘Sezioni Specializzate in
material di Proprietà Intellettuale') in the following major Italian cities: Bari, Bologna, Catania,
Florence, Genoa, Milan, Naples, Palermo, Rome, Turin, Trieste, and Venice.
• Adoption of EC Directive 29/2001 on the harmonisation of certain aspects of copyright and related
rights in the information society (the ‘Information Society Directive’). Italy was one of the first EU
countries to amend its domestic copyright laws to keep pace with the provisions of the recent
Information Society Directive, embodying the provisions of the WIPO Copyright Treaty and the
WIPO Performances and Phonograms Treaty of 1996. Law Decree No. 68 of 9 April 2003 brought
the changes into effect.
• Setting up of the ‘Comitato per la lotta alla contraffazione’. Italy's 2004 Fiscal Law established an
Anti-counterfeiting committee to co-ordinate the fight against piracy and counterfeited goods.
• ‘Made in Italy’. The 2004 Fiscal Law also recognised a new form of collective label to distinguish
and increase demand for Italian-produced goods worldwide. Using the ‘Made in Italy’ label on
non-Italian originating goods and services is punishable by law. A National Fund of EUR 35
million in 2004, EUR 55 million in 2005, and EUR 35 million in 2006 is available to encourage
Italian companies to adopt the label.
Furthermore, in May 2002 the Italian Parliament granted the Government law-making powers to
reorganise and update the current patent and trademark rules into a ‘single law’ (Testo Unico). New
legislation awaiting the Italian Parliament's approval in 2004-2005 provides stronger protection for
internet domain names (already protected under current trademark laws) and for the reorganisation of
the Italian Patent and Trademark Office (PTO). The PTO will offer on-line users access to a new
database of Italian patents and trademarks on file. The Italian Government has also increased its
budget.
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European Trend Chart on Innovation
3.2.3
Administrative simplification
Administrative simplification was a very important target for the previous Government [e.g. One-stopshop IT-29] and has been declared as strategic by the present Coalition too.
The process of administrative simplification in Italy is based on three laws, known as the Bassanini
laws, which were approved in 1997 and 1998. The first of these laws, Law 59 of 1997, has objectives
including reducing the number of ministries and the structural costs of central Government,
transferring responsibilities for SME incentives to the regions, and creating one-stop shops for
enterprises (‘Sportelli Unici’). The Italian model of one-stop shops for enterprises serves, above all, to
simplify administrative procedures. This initiative, which entered into force on 29 May 1999, broke
with tradition by remedying a major problem that has plagued the Italian administrative system,
namely the excessive division of responsibilities, which incurs pointless costs that must be paid by the
end-users. The one-stop shop brings all the procedures necessary for issuing authorisations for the
location, establishment, restructuring, enlargement, winding-up, re-starting, transformation, execution
of internal works and relocation of production units together under one roof. The municipality, through
the one-stop shop, issues a single authorisation document.
On 15 May 2000, an action plan to speed up the complete introduction of the ‘Sportelli Unici’ was
adopted. The main impact of this instrument is to reduce the administrative duties and costs
incumbent upon enterprises, and to make the time needed to conclude the procedures shorter and
more predictable.
In 1999, a Simplification Task Force was set up, attached to the Prime Minister’s Office, to simplify
legislation and procedures. On 27 March 2000, the Prime Minister’s Office adopted a directive on the
business impact assessment of legislation. In 1998 and 1999, further simplifications were introduced.
These include: ‘self-certification’, namely the simplification of administrative documentation, which
results in a significant reduction in the red tape with which citizens and enterprises have to deal;
simplification of the recognition procedure for private legal persons, thus allowing them to obtain
recognition in record time - four months instead of approximately 24 months required under the
current procedure; simplification of the procedure required for interventions to promote female
entrepreneurship; shortening the procedures to grant incentives to enterprises and redefining
deadlines and responsibilities; and full legal validity for electronic signatures.
3.2.4
Amelioration of legal and regulatory environments
As such, this is a minor objective in the national context. This theme can be connected with other
important issues like, for example, the privatisation and liberalisation activities (see Competition) or
the public sector modernisation (see Administrative Simplification and Public authorities and support
to innovation policy makers).
3.2.5
Innovation financing
The D.L. 297/1999 [IT-11] represents an important ‘innovation’ in this field: it covers all MIUR
interventions concerning the co-ordination, promotion and implementation of measures aimed at
sustaining research and innovation in industry by mean of a unique fund which absorbs all the
previous ones (MURST Decree 8 August 2000, Official Journal n.14 18 January 2001) [IT-36].
The Ministry for Productive Activities with its Decree 16 January 2001 (published on the Official
Journal n.79, 4 April 2001) has launched the new directives on the FIT (Fund for the Technological
Innovation). [IT-37]
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European Trend Chart on Innovation
The 2000 - 2006 National Operational Programme (NOP), Local Development, for which the Minister
for Productive Activities is responsible, includes several measures providing assistance to enterprises
which will be required to innovate strongly within the complex environment of the instruments
providing support for the development of production and entrepreneurship in the country. Measure 1
of the NOP provides for co-financing for Law No 488/92 [IT-16] on the industrial sector (which has
produced good results in terms of efficiency and effectiveness). It will also include an initiative
intended to provide protection for enterprises (see also Section 3.1.4 Fostering innovative
organisational and management practices in enterprises). Measure 2 of the NOP concerns the
‘Integrated incentive plan’ (Pacchetto integrato di agevolazioni – PIA) [IT-25], a measure which allows
enterprises to submit a single, multi-annual development plan to gain access to the financial
advantages available for various instruments. The integration comes from a management model
which provides a single contact point that accepts applications and co-ordinates their evaluation.
Thus, a single application allows enterprises to obtain a series of advantages for different purposes,
such as purchasing machines and equipment for manufacturing or research and development, setting
up networks (possibly linked to the ‘new economy’), purchase services and consultants’ advice on
internationalisation, innovation and training, and building shared infrastructure.
The first implementation of this is ‘PIA Innovation’ which focuses on contextual financing of fixed
investments (such as plants, machinery and equipment) and of pre-competitive development activities
(eligible for the advantages set out in Law No 46/82), such as carrying out planning, pilot projects,
development and pre-industrialisation looked at as a whole.
A second application concerns training. The European Funds can support investment initiatives that
plan significant job creation and which have a considerable need for skills and training. In this way,
‘PIA Training’ hopes to provide an incentive for fixed investment. It is intended to be an incentive to be
used to finance the training requirements triggered by investment projects.
The last measure planned is ‘PIA Networking’, which was born of the need to make an integrated
incentive plan available not only to stand-alone enterprises, but also to groups of enterprises (see
Section 3.1.6 Promotion of clustering).
The approval of the action called ‘the one hundred days manoeuvre’ brought into force the new rules
regarding non-taxation of re-invested profits. (‘Tremonti bis’: the name of the Italian Minister for the
Economy who promoted a similar regulation in 1994). The new Government has great expectations
that the economy will be stimulated by this action (see also Section 3.2.6 Taxation) [IT-38].
The Action Plan for ICT Innovation in the Enterprises2 includes special short term measures aimed at
facilitating the access to venture capital for new business and SMEs in disadvantaged areas. The
government-supported venture funds are allocated for innovative projects in the ICT area to banks or
other financial institutions that may control small or temporary quotas of the above-mentioned
enterprises. This initiative can only be implemented if the following pre-requisites are met:
•
•
Quotas must be acquired in new enterprises on the enterprises and in SMEs located in areas
ranked as Objectives 1 and 2.
Enterprises must be constituted as public limited companies and prove to be able to face
financial obligations as foreseen in investment plans.
The eligible projects concern:
1) For new enterprises within Italian national territory:
• Innovative development projects with an elevated technological impact
• Projects to develop product and services in the ICT domain, including network software,
innovative software, development of multimedia content and interactive distance training.
2
http://www.innovazione.gov.it/ita/comunicati/allegati/sintesi_PianoInnovazione.pdf
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European Trend Chart on Innovation
2) SMEs located in areas ranked as Objectives 1and 2: reinforcing the assets of enterprises:
• Funds are advanced to acquire temporary or minority quotas. The subscribed quotas must be
newly emitted and represent at least 20 percent of the social capital. Quotas can be kept for a
period of up to seven years. Funds cover 50 percent of the quota up to EUR 2.06 million for
any single initiative. When the quotas are dismissed borrowers pay the State 50 percent of
profits.
• Funds can be required by banks, financial intermediaries and Financial Enterprises for
Innovation and Development (Società finanziarie per l'Innovazione e lo Sviluppo (S.F.I.S.)
The fund is made up of EUR 72 million put aside by law 388/00 (section 103) and of EUR 155 million
put aside by section 106 of the same law. 15 percent of the second amount (about EUR 34 million) is
paid to universities and research centres.
Innovation networks and clusters: policies to promote the formation of innovative ICT business
networks and firm clusters.
In order to improve the diffusion of information technologies among businesses, between business
associations and businesses, and/or the public and private sectors, the Ministry of Productive
Activities has put forward a programme of incentives (law 388/2000 art. 103 (5) (6)), to encourage
enterprises in adopting e-commerce (B2C and B2B) and electronic connections [IT-40] (See Section
3.3.5 Strengthening of the ability of companies, particularly SMEs, to absorb technologies and knowhow).
A new law, Tecno-Tremonti – Incentive for Research & Development, has been introduced in order to
promote R&D and Innovation investments (see also Section 3.2.6 Taxation). For the financial year
2004 it is possible to reduce the taxable income by deducting Research and Development costs,
including those for obtaining of a patent, equal to ten percent of the value which can be included
among the intangible assets, in addition to the normal deduction from the depreciation share.
3.2.6
Taxation
The approval of the action called ‘the one hundred days manoeuvre’ brought into force the new rules
regarding non-taxation of re-invested profits. (‘Tremonti bis’, using the name of the Italian Minister of
Economy who promoted a similar regulation in 1994). The new Government has great expectations
that the economy will be stimulated by this action [IT-38].
On 13 March 2001 the European Commission approved an aid scheme, as envisaged by Art. 8 of
Law 388/2000 (Finance Law for 2001), authorising a new automatic incentive for companies investing
in less-favoured areas of the country (Tax credit for new investments in less-favoured areas in Italy)
[IT-39]. The incentive consists of a tax credit that enables firms to offset both direct and indirect taxes.
All companies (regardless of their legal form) located in the less-favoured areas of the South and
Centre-North carrying out new investments in these areas are eligible, with the exception of noncommercial bodies, even those engaged in commercial activities.
Tax relief for researchers taking up residence in Italy
In order to encourage foreign researchers to Italy, Art.3 of DL 269/2003 has been approved, granting
researchers beginning their research work in Italy - and thus becoming tax-payers in Italy - the facility
of paying taxes on only ten percent of their taxable income as employees or as self-employed
researchers. In addition their income is not included in the regional production tax liability. These
incentives apply to the tax period during which the researcher is working as a resident in Italy, and for
the following two tax periods (see also Section 3.1.2 Mobility of students, research workers and
teachers)
As outlined above, the new Tecno-Tremonti – Incentive for Research & Development law has been
introduced in order to promote R&D and Innovation investments.
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European Trend Chart on Innovation
3.3 Gearing research to innovation
This is the key priority area in the Italian context: all the sub-areas are quite important and this means
new approaches and new measures to improve the R&I performances.
3.3.1
Strategic vision of research and development
With the approval of the Science and Technology (S&T) policy guidelines the Government defined a
new strategy to strengthen research in Italy. The guidelines are the basis of the National Research
Plan 2003-2006 and were defined following a wide consultation among all actors of the Italian
research system: the scientific community, universities, public research bodies, enterprises and trade
unions.
Strategic choices derive from a deep analysis of the Italian research system and from a punctual
identification of its strengths and weaknesses, as well as from the evaluation of the opportunities for
research in the international scenario. The S&T guidelines provide a precise framework of priorities
for national research in order to foster the position of the Country and develop excellence in the most
promising and added value technological areas.
The MIUR, with Decree 30 January 2001, established the procedures for the assignment of the FIRB
(Fondo per gli Investimenti della Ricerca di Base – Fund for the Basic Research Investments)
resources [IT-35].
Considerable financing was allocated by the Ministry of Education, University and Research for
projects to be carried out in the year 2002. Allocations are decided on an evaluation basis (following
the issue of competition announcement or by direct application), and are an important index in
assessing the Ministry's research activities. The procedure followed takes several months and
consists of the following stages:
•
•
•
•
Issue of specific competition announcements;
Submission of applications for project financing;
Project evaluation by special technical and scientific boards made up of experts in the field;
Selection of the proposals considered the most deserving, followed by the allocation of funds.
In 2002, the number of applications for funding that were accepted rose from 1,949 of 2001 to 2,755,
with a 40 percent increase. Funding has almost doubled, rising from EUR 1,246,430,089 in 2001 to
EUR 2,232,896,982 in 2002: an increase of about one billion euro, or about 80 percent.
This leap forward is mainly in response to assessments made of the three main funding programmes:
•
•
•
National Operational Programme ‘Research, technological development and high-level
training’, which foresees investments in the Objective 1 areas (the six Southern regions of the
country: Apulia, Campania, Basilicata, Calabria, Sicily, Sardinia): the increase has been of
about EUR 400 million.
FIRB (Fondo per gli investimenti in ricerca di base, Fund for Investments in Basic Research)
which has benefited from funds deriving from the sale of Umts licences (over EUR 350
million).
Italian Law 46/82, with its Special Fund for Applied Research (FAR) for national industries: an
approximate addition of EUR 190 million.
The National Operational Programme ‘Research, technological development and high-level training’ is
funded by the ERDF (European Regional Development Fund), ESF (European Social Fund) and the
Rotation Fund for the implementation of Community policies. Its targets are depressed areas
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European Trend Chart on Innovation
identified under Objective 1. The overall investment under this programme for the period 2002-2006 is
more than EUR 2 billion. Several types of projects are funded under this programme.
2002 was the year that saw the first allocation of FIRB funds (Investment Fund for Basic Research).
The fund was set up by the 2001 Italian appropriation act. Following nine competition announcements
last year, 532 projects were approved and provided finance for an overall amount of EUR
357,485,000.
The most important increase related to FAR (Special Fund for Applied Research), set up with the aim
of supporting industrial research: 400 allocations were made in 2001 which went up to 512 in 2002 –
a 28 percent increase. The funds allocated also rose considerably, from EUR 732,812,953 in 2001 to
last year's EUR 1,287,878,202, for a difference of EUR 555,065,249, i.e. up 76 percent. It is common
knowledge that FAR appropriation laws are of two types: there are funds that go to supporting
companies located in Southern Italy and funds destined for all the companies distributed across the
national territory. The considerable increase is mainly due to the allocation of funds (EUR 366 million)
to areas of Southern Italy drawn from the financial resources allocated under the NOP (art. 12 of
Italian Legislative Decree 297/99).
The Ministry of Education, University and Research every year co-finances research projects of key
national interest (PRIN) with a duration of two years and proposed by Universities as well as
astronomical, astrophysical and volcanological Observatories. As for allocations over the past two
years, in 2001 allocations were made to 748 projects, which increased in 2002 to 857 - an increase of
109 allocations or approximately 15 percent. The amount of funds allocated has also increased,
although only slightly, thanks also to the recovery of funds from previous years that were not invested:
EUR 125,163,329 were allocated in 2001, which rose to EUR 129,810,777 in 2002 - EUR 4,647,448
more than in 2001.
3.3.2
Strengthening research carried out by companies
The D.L. 297/1999 represents an important ‘innovation’ in this field: it covers all MIUR interventions
concerning the co-ordination, promotion and implementation of measures aimed at sustaining
research and innovation in industry by mean of a unique fund which absorbs all the previous ones
(MURST Decree of 8 August 2000, Official Journal n.14 of 18 January 2001).
The European Commission has decided to contribute actively to the development of Italy's
Mezzogiorno [IT-25] in the fields of research and innovation by co-financing both the multiregional
programme for scientific research, technological development and advanced training and the
multiregional local development programme for the 2000-2006 period.
The programme for scientific research, technological development and advanced training revolves
around three priority areas and technical assistance measures.
•
•
•
Priority 1: Research and development in industry and strategic sectors. Measures will provide
support for scientific and technological development in companies and research and
innovation.
Priority 2: Strengthening and opening up facilities for science and advanced training. The aim
is to promote links between science, technology and the marketplace by creating and
strengthening centres of excellence, disseminating and enhancing new technologies,
establishing networks and developing the information society.
Priority 3: Development of high-grade human resources. Measures financed will seek to
strengthen human resources in the areas of research, science and technology. Emphasis will
also be placed on improving higher education and university training and encouraging the
presence of highly qualified women on the labour market, in particular in the research sector.
26
European Trend Chart on Innovation
3.3.3
Start-up of technology-based companies
This objective will be pursued through the D.L. 297/1999 [IT-11 and IT-36] (see Section 3.2.5
Innovation financing).
Many of the reforms and simplified standards have made it easier to start new enterprises. According
to some estimates (OECD, Regulatory Reform in Italy, April 2001), the number of administrative
procedures that must be completed to start a new business has been reduced from 25 in 1998 to five
in 2001. Furthermore, the maximum time needed to complete the entire process has been shortened
from 22 weeks to 10. The total cost of starting up a company has dropped from EUR 7,700 to EUR
3,500, while setting oneself up as self-employed has been reduced from EUR 1,150 to EUR 500.
The main instruments introduced under the previous Government as incentives to create start-ups are
the following:
•
•
•
•
•
•
•
Setting up one-stop shops for manufacturing – a single address for enterprises to contact with
regards to everything concerning locating, building and restructuring manufacturing plants,
with procedures completed quickly and within a specific time limit (see Administrative
simplification).
Action to encourage women to become entrepreneurs (Presidential Decree No 314/2000).
Simplification of the rules for registering enterprises (Presidential Decree No 558/1999).
Various advantages, contributions, subsidies and benefits to assist in developing export
markets and make manufacturing focus more on international markets (Presidential Decree
No 161/2001).
Eliminating the requirement for court authorisation when setting up limited companies,
resulting in lower costs.
In-depth renewal of the interdepartmental conference (Law No 340/2000).
Eliminating the provinces’ ‘legal announcement form’ (foglio degli annunzi legali -FAL), an
outdated and ineffective way of making information public in the modern information society,
resulting in savings for enterprises of approximately EUR 2,326.06 (Law No 340/2000).
In addition, Law No 388 of 23 December 2000 (Financial Law 2001) has set up a system of reduced
taxation for new enterprises set up by entrepreneurs and for individuals setting up as self-employed.
The goal of this law is to provide incentives for physical persons to set up new enterprises or to
become self-employed, and provide assistance during the early years of activity, where high start-up
costs and a modest amount of business are typical. The reductions apply to the year in which the
enterprise was set up, and the two following years. The two main measures in the system of reduced
taxation are a tax that replaces ten percent of the IRPEF and radical simplification of the accounting
obligations.
It also includes measures to provide tax assistance to those who meet the requirements of eligibility
for the tax reduction. The local office of the Revenue Agency covering the entrepreneur’s fiscal
domicile is available to provide assistance in meeting the simplified tax requirements. If entrepreneurs
decide to avail themselves of this assistance, they must obtain the computer equipment which is
needed to connect to the Revenue Agency’s computer system.
With the Ministerial Decree of 3 February 2003 the Ministry of Productive Activities Financial
regulated the support for the promotion and the development of new innovative enterprises foreseen
by the L. 388/00 [IT-41]
27
European Trend Chart on Innovation
3.3.4
Intensified co-operation between research, universities and companies
The D.L. 297/1999 represents an important ‘innovation’ in this field: it covers all MIUR interventions
concerning the co-ordination, promotion and implementation of measures aimed at sustaining
research and innovation in industry by mean of a unique fund which absorbs all the previous ones
(MURST Decree of 8 August 2000, Official Journal n.14 of 18 January 2001) [IT-36].
3.3.5
Strengthening of the ability of companies, particularly SMEs, to absorb
technologies and know-how
On 24 July 2002 the Ministry of Productive Activities released the list of firms which can benefit from
the support of the incentive to the development of electronic commerce [IT-34].
In order to improve the diffusion of information technologies among businesses, between business
associations and businesses, and /or the public and private sectors, the Ministry of Productive
Activities has put forward a programme of incentives (law 388/2000 art. 103 (5) (6)), to encourage
enterprises in adopting e-commerce (B2C and B2B) and electronic connections [IT-40] (See Section
3.2.5 Innovation financing).
The aim is to close the ‘infrastructural’ and ‘cultural’ gap of the Italian enterprises concerning ecommerce and e-business, as well as pushing SMEs to gain technological know-how in view of
buying and selling on-line. The enterprises’ response has been terrific: around 12,000 businesses
participated to the open competition, of which 9,313 received funding for up to EUR 637 million.
Seventy percent of these were small enterprises while the medium ones represented 16 percent of
the total number. Thanks to this financial support, the Ministry of Industry hopes to increase, as from
2004, the number of sites and on-line transactions of SMEs and thus to fill the gap with other EU
countries.
28
European Trend Chart on Innovation
4. List of TREND CHART measures
Code
Name
Start/En
d Dates
1997/
open
Action Plan
Areas
I.1, II.5, III.2, III.4,
III.5
Old/New/modifi
ed/extended
ARCHIVED
IT-1
Special applied research fund (232/97)
IT-2
Employment in the field of research (Treu 196/97;
449/97)
1997/
open
I.2, III.4, III.5
ARCHIVED
IT-3
Support for the promotion of scientific culture
(18/6/97)
Autonomous research projects in the regions
lagging behind (104/95)
Research centres in the regions lagging behind
(104/95)
Vocational training in the regions lagging behind
(104/95)
Measures aimed at sustaining innovation (140/97)
1997/
open
1995/
open
1995/
open
1995/
open
1997/
open
1998/
open
I.3, III.4
ARCHIVED
II.5, III.2, III.4, III.5
ARCHIVED
III.4
ARCHIVED
I.1, III.5
ARCHIVED
II.5, III.2, III.4, III.5
New
I.2, III.4, III.5
ARCHIVED
II.5, II.3, I.5, III.1
ARCHIVED
II.5, II.3, I.5, III.1
ARCHIVED
1999/
open
II.5, II.3, III.4, III.3
3
1998/
open
1998/
open
II.3, II.5
ARCHIVED
II.5, II.3, III.1
ARCHIVED
IT-4
IT-5
IT-6
IT-7
IT-8
IT-9
IT-10
IT-11
IT-12
IT-13
Research assignments to public research
laboratories. Employment of researchers by
SMEs (449/97)
The Reform of the Public Administration
(Bassanini 1) (59/97)
Devolution of State's administrative functions and
tasks to Regions and Local Bodies (d.lgs. 31
marzo 1998, n. 112)
The reorganisation of the regulation and the
simplification of the procedures: the Fund for
Research Support (decreto legislativo 27 luglio
1999, n. 297)
Measures for the rationalisation of the public
support initiatives for the enterprises (123/98)
Co-ordination, programming and evaluation of the
national scientific and technological research
policy (204/98)
1997/
open
1998/
open
New
See also IT-36
3
This rescinds the following measures:
1) art. 4 Law n. 1089 25 October 1968
2) artt. 2 and 3 Law n. 652 14 October 1974
3) art. 70, sentences 3, 4 and 5 of the President Decree n. 218 6 march 1978
4) artt. from 2 to 12 Law n.46 17 February 1982
5) art. 12, sentences 8, 9 e 11 Law n.64 1 March 1986
6) art. 15, sentences 3 and 4, Law n. 67 11 March 1988
7) art. 1, sentence 2, artt. 2, 3, 4 and 5 Law 346 5 August 1988
8) art. 11, sentences 2, 3 and 4 Law-Decree n. 299 16 May 1994, converted withLaw n.451 19 July
1994
9) art. 1, sentence 1, letter d), Law-decree n. 547 23 September, converted with Law 644 22
November 1994, from ‘di cui il 30 percento’ up to the end of letter d);
10) art. 3, sentences 2, 2-bis and 3 Law-decree n. 26 31 January 1995, n. 26, converted with Law
n.95 29 march 1995
11) art. 6, sentences 2, 3, 4 and 6 Law-decree n. 32 8 February 1995, n. 32, converted with Law n.
104 7 April 1995
12) art. 1, comma 35, Law n. 549 28 December 1995
13) art. 14 Law n. 196 24 June 1997
14) art. 45, sentences 15 and 16 Law 448 23 December 1998
29
European Trend Chart on Innovation
IT-14
IT-17
Urgent intervention for the economy (Bersani,
266/97)
Reorganisation of the public research centres and
establishment of new ones
Investments in the depressed areas of the
national territory (488/92)
Innovation and SMEs (317/91)
IT-18
Large research projects (346/88)
IT-19
IT-21
Research programmes within the international cooperation (22/87)
Incentives for the acquisition of new machinery
(1329/65)
University System Evaluation Observatory
IT-22
The Information Society Forum
IT-23
IT-24
Reordering of the promotion bodies and
establishment of Sviluppo Italia SpA, in
compliance with Law 15 March 1997 n. 59 artt. 11
and 14, Legislative Decree n. 1 9 January 1999
Research and innovation in the Social Pact
IT-25
PIA Integrated Incentive Plan
IT-26
Agreement Sviluppo Italia-MURST
IT-27
Law no.6, 10 January 2000: amendments to Law
no 113 28 march 1991 ‘Diffusion of the scientific
culture’
IT-28
Decree 3 December 1999 concerning the
definition of both the condition of admission and
the general rules for the administration of the
Guarantee Fund for SMEs ex art. 2, comma 100,
letter a), of Law 23 December 1996, no. 662
(purchasing of patents, licences and technical
know how)
One stop shop
IT-15
IT-16
IT-20
IT-29
IT-32
MURST Directive no 1310 24 November 1999,
strategic recommendation for the implementation
of art.4 of Law No 46, 17 February 1982, and art.
9 of the Ministerial Decree 8 August 1997.
IT-33
MURST directive no. 760 29/12/99 concerning
the transitory disciplines for the activities
supporting the industrial research, in the absence
of the regulations for the implementation of
Legislative Decree no 297 27 July 1999
1998/
open
1999
II.5
ARCHIVED
III.4, I.2
ARCHIVED
1992/
open
1991/
open
1988/
open
II.5, III.5
New
I.6, II.5, III.5
ARCHIVED
II.5
Innovation
financing
III.2 Strengthening
research
carried
out by companies;
III.4 Intensified cooperation between
research,
universities
and
companies
II.5, III.2, I.4
ARCHIVED
ARCHIVED
II.5, III.5
New
I.3, I.5
ARCHIVED
I.3, I.5
ARCHIVED
III.1, III.4
ARCHIVED
1998/
open
20002006
I.5, II.4, III.1
ARCHIVED
I.1, I.6, II.5, III.1,
III.2, III.4, III.5
New
2000/
open
2000/
open
III.3, III.4
ARCHIVED
I.3
Continuation/am
endment
of
previous law
2000/
open
II.2
ARCHIVED
1999/
open
1999/
open
II.3
ARCHIVED
II.5, III.2, III.4
ARCHIVED
1999/
open
II.5, II.3, III.4
ARCHIVED
1987/
open
1965/
open
1996/
open
1999/
open
1999/
open
30
European Trend Chart on Innovation
IT-34
Support to the electronic commerce
IT-35
Procedures for the implementation of the FIRB
IT-36
Decree for the implementation of the Fund for
Research Support (decree 27 July 1999, n. 297)
Decree for the implementation of the Fund for
Technological Innovation (FIT ex art. 14 Law
46/82)
Non-taxation of re-invested profits (Tremonti Bis)
IT-37
IT-38
IT-39
IT-43
Tax credit for new investments in less-favoured
areas in Italy
Support to the development of e-commerce (B2C
and B2B) and electronic connections
Support for the promotion and the development of
new innovative enterprises
Tecno-Tremonti – Incentive for Research &
Development
Tax incentives to non residential researchers
IT-44
Technological Districts
IT-40
IT-41
IT-42
2001/op
en
2001/op
en
2001/op
en
2001/op
en
2001/20
02
2001/20
06
2003/op
en
2003/op
en
2003/20
04
2004/20
08
2004/op
en
III.5, II.5
ARCHIVED
III.1, II.5
New
II.5, II.3, III.4, III.3
New
II.5, II.3, III.4; III.3
New
II.6, II.5
ARCHIVED
II.6, II.5
New
III.5, II.5
New
III.3
New
II.6, II.5
New
I.2, II.6
New
I.6
New
31
European Trend Chart on Innovation
5. Bibliography and sources
AIRI, Associazione Italiana per la Ricerca Industriale
www.airi.it
Bank of Italy (2004), Ordinary general meeting of shareholders held in Rome on 31 may 2004. The
governor’s concluding remarks
http://www.bancaditalia.it/pubblicazioni/ricec/relann/rel03/rel03it
Benchmarking Confindustria
http://www.confindustria.it/DBImg2002.nsf/HTMLPages/Bench
CIPE
http://www.cipecomitato.it/ML_Cipe.asp
Confindustria The Research Day
http://www.confindustria.it/Conf/EvenPub.nsf/4b280a61a37ae76c8625686d006582b7/3682b5aaeec2
d79dc1256f09004b9967?OpenDocument
Confindustria The challenge of growth
http://www.confindustria.it/Conf/EvenPub.nsf/4b280a61a37ae76c8625686d006582b7/8b96ee2454ea
3491c1256e4e00496365?OpenDocument
Emilia Romagna
http://www.regione.emilia-romagna.it/index.htm
Emilia Romagna: Aster
www.aster.it
Emilia Romagna: the Spinner initiative
http://www.spinner.it/index.html
The Government Web Site
http://www.governo.it/
http://www.italia.gov.it
Il Sole 24 Ore
www.sole24ore.com
MIUR
http://www.miur.it/0003Ricerc/index_cf3.htm
Ministry of Productive Activities
http://www.minindustria.it
Ministry of Productive Activities, Monitoring of incentives
http://www.minindustria.it/aree/documenti.php?id_area=42&id_servizio=10&sezione=aree&tema_dir=t
ema2
Minister of Innovation and New Technologies
http://www.mininnovazione.it
http://www.innovazione.gov.it/ita/comunicati/allegati/sintesi_PianoInnovazione.pdf
32
European Trend Chart on Innovation
Ministry of Foreign Affairs
http://www.esteri.it/ita/4_28_67_81_91_89.asp
Puglia
http://por.regione.puglia.it/../MAcrofunzioni/PUB/Pub_ElencoDocumenti.asp?rubCercaHide=Norme
percent20e percent20Documenti percent20Regionali
Regions
www.regioni.it
www.decentramento.it
Links to the Regions’ web sites
http://www.regioni.it/Copia percent20di percent20mhonarc/link/pag_link.html
RIDITT Rete italiana per la diffusione dell’innovazione e il trasferimento tecnologico alle imprese
http://www.riditt.it/page.asp
33