IV.10.

SCIENCE AND INNOVATION: ITALY

ITALY
Hot STI issues

Improving the framework conditions for innovation.

Strengthening the human resource base for innovation.

Improving the co-ordination of STI policy across government and between the central government and
the regions.

General features of the STI system: To put the

economy on a sustainable growth path based on
sound macroeconomic fundamentals, the Italian
g overnme nt has embarked since 2011 on a
substantial process of fiscal consolidation and
structural reform. Innovation will be crucial for
boosting competitiveness and sustainable growth in
the longer term. Although many indicators point to
a modest level of STI activity, attention is being given
to increasing it. In 2010 GERD was just 1.26% of GDP,
about half of the OECD average, and more in line
with the R&D intensity of emerging economies. The
business sector performs only around half of GERD, a
low share for an advanced economy. At 0.66% of GDP
BERD lags behind the OECD average (Panel 1(d)), with
business sector innovation performance varying
across firms and regions. In fact, a segment of
innovative firms, including flexible SMEs, coexists
with many non-innovative firms operating at low
levels of productivity. Moreover, much R&D and
innovation capacity is concentrated in northern and
central regions of the country. The low share of
industry-financed public R&D (1(o)) is indicative of
weak industry-science linkages. Venture capital is in
short supply (1(h)) and the patenting rate of young
firms is low (1(f)). In general, Italy tends to perform
better on indicators of non-R&D-based innovation
(for example, it leads in Community designs). A very
low share of the population has completed tertiary
education (1(s)) in spite of a significant increase
since 1999. In line with its GERD, Italy has few

researchers by international standards. Participation

in international networks is quite strong, however:
41% of scientific articles and 13% of PCT patent
applications were produced with international
collaboration (1(q)(r)). Internet subscriptions are close
to the median (1(k)(l)) and e-government readiness is
relatively low (1(n)).
Recent changes in STI expenditures: GERD has recorded
annual growth of about 2.7% over the second half of
the last decade. In 2009, industry funded 44% of
GERD, government accounted for 42%, and 9% was
funded from abroad. With a budget of USD 2.5 billion
(2010-11), the Fund for the Promotion of Research
(FAR) contributed significantly to increasing public
funding for business firms, universities and PRIs.
Overall STI strategy: The National Research Plan
(2011-13) aims to promote research by strengthening
business sector co-operation with the public sector
and supporting the internationalisation of research.
The Industry 2015 programme (2006-15) sets out to
s u p p o r t b u s i n e s s n e t wo r k s a n d i n d u s t r i a l
innovation projects and includes a fund for
enterprise finance. However, the National Reform
Programme 2011-12 requires general policies to have
a small impact on the national budget. The countrys
south and SMEs have attracted special attention in
STI strategies and policies. The National Strategic
Fra m ewo r k 2 0 0 7 - 1 3 i n c l u d e s t h e N a t i o n a l
Operational Programme (PON) Research and
Competitiveness 2007-13, funded by the European

Key figures
Labour productivity, GDP per hour worked in USD, 2010
(annual growth rate, 2005-10 )
Environmental productivity, GDP per unit of CO2 emitted in USD, 2009
(annual growth rate, 2005-09)

328

43.9
(0.1)
4.99
(+3.6)

GERD, as % of GDP, 2010

(annual growth rate, 2005-10)
GERD publicly financed, as % of GDP, 2009
(annual growth rate, 2005-09)

1.26
(+2.7)
0.55
(0.9)

OECD SCIENCE, TECHNOLOGY AND INDUSTRY OUTLOOK 2012 OECD 2012

OECD SCIENCE, TECHNOLOGY AND INDUSTRY OUTLOOK 2012 OECD 2012

or

al

ad

at

te
ns
in
to
le

pl
m
en
t(

at
io

Pa

te

in

in

er

in

x(

j)

(i)

h)

(f )
(g

P)
de

GD

e)

(d

(c

)(

P)

b)

)(
P)

DP

GD

GD

rG

hi

(p
rs

ld

er

er

pe

(p

(p

l(

eu

so
en

ar

ks

ita

ar

P)

P)

DP

GD

GD

rG

er

er

(a

)(

P)

DP

GD

rG

pe

(p

(p

s(
es

or

ap

pr

ye
tr e

ec

de

ls

re

ili

st

i tu

na

am

ve

tf

ur

en

nt
ha
of

en

Tr
a

at

in

ur

nd

jo

er

pe

(p

s(

re

tie

i tu

si

nd

er

pe

le

ex

r ti

iv

pe

un

ex

&D

Ve
st
se

es
Ea

sl

cp

eR

di

at

Tr
ia

or

ua

&D

-q

50

R&

sR

op

es

rp

co

ic

To
p
et

sin

th

f ir

Bu
50

ns

nt

To
p

ic

bl

OECD median

v)

(u

%
)(

t)

s)

%
)(

in

e(

er

nc

%
)(

q)
(%
)(
r)

l(

ve

in

ne

ie

gi

oy

en

sc

le

nt

o)

bl

Pu

Business R&D and innovation

nd

si

ea

er

te

n)

(p

)(

x(

(m

P)

(l)

(k

(%
)(

GD

ip

er

de

n)

n)

DP

in

t io

rG

sh

(p

or

tio

pa

ca

o-

th

bs

au

la

pe

ss

la

io

n)

Knowledge flows and

commercialisation

ta

nc

rm

ie

r fo

sc

pe

lc

o-

ic

du

na

lc

bl

ne

pu

s(

di

po

io

at

at

ul

ul

op

op

rp

re

ea

er

i tu

tr

(p

nd

ye

io

na

ar

at

io

r ti

in

t io

ra

to

rn

te

te

at

pe

pu

ex

en

s)

rn

nd

ve

sa

rn

at

In

te

tie

R&

go

te

pe

rp

Pu

Middle range of OECD values

pa

cu

ld

io

t io

oc

ua

si

ic

E-

ys

pe

s(

s(

er

er

r ib

r ib

sc

sc

su

su

ss

ou

In

er

bl

ar
-o

ul

ye

S&
T

gr

15
-

op

iv

pu

un

ed

by

nc

tp

ul

il e

na

om

an

Internet for innovation

Ad

sf

-f i

on

db

an

Science base

ct

nt

ut

oa

db

Top/bottom 5 OECD values

Do

te

(a

br

oa

Bottom half
OECD

ry

ks

ss

br

Top half
OECD

st

or

le

Bottom half
OECD

du

tw

ir e

xe

Top half
OECD

Pa

In

Ne

Fi

IV.10. SCIENCE AND INNOVATION: ITALY

Figure 10.24. Science and innovation in Italy

Panel 1. Comparative performance of national science and innovation systems, 2011

Italy

a. Competences and capacity to innovate

Entrepreneurship

200

100
150

50

b. Interactions and human resources for innovation

Human resources

200

100
150

50

Note: Normalised index of performance relative to the median values in the OECD area (Index median = 100).

329

IV.10.

SCIENCE AND INNOVATION: ITALY

Regional Development Fund (ERDF) and by the

national Revolving Fund (Fondo di Rotazione), which
is of high importance for regional cohesion and
competitiveness.
STI policy governance: The Ministry for Economic
Development (MISE) is in charge of industrial
innovation, and the Ministry for Education,
University and Research (MIUR) is responsible for the
national education system, including higher
education, but also for promoting research at national
and international level. The National Agency for the
Evaluation of Universities and Research Institutes
(ANVUR) has operated under MIUR since 2010.
Science base: The public research system, with HERD
of 0.36% and GOVERD of 0.18% of GDP in 2010,
performs the greater part of R&D. Higher education
and PRIs contribute to innovation in a number of
ways but their co-operation with business firms
needs to be improved. In order to improve public
research performance, a reform of funding
mechanisms for and management of universities
was approved in 2010 by Parliament and is being
implemented. The reform of the PRIs under MIUR has
also recently been undertaken.
Business R&D and innovation: As in other OECD
countries, there has been a shift towards indirect
funding of R&D in recent years. As stated in the
National Reform Programme 2011, for 2011/12, tax
incentives have been strengthened for research
commissioned by firms to universities and PRIs as
well as for research developed in collaboration with
them.
Public-sector innovation: The e-Government
Plan 2012 of the Department for Public Administration
defines a set of digital innovation projects to
modernise the public administration, to make it
more efficient and transparent, and to improve the
quality of services and reduce costs. The plan sets
out some 80 projects and 27 targets to be achieved
by 2013.
Knowledge flows and commercialisation: Various
initiatives aim at bridging the gap between academia
and industry. Technological districts and high
technol ogy pol es as wel l as pu blic- priva te
laboratories are established in different parts of the
country. The National Innovation Fund (FNI) was

330

created in 2012 by MiSE to facilitate the financing of

innovative projects based on the exploitation of
industrial designs and patterns. In addition, the
Innovation Package introduced in 2011 supports the
patenting activity of SMEs. The National Technology
Platforms and Industrial Innovation Network
(RIDITT) were set up in 2010 to ensure dissemination
of innovation and technology between research
system and enterprises.
Globalisation: The Strategy for the Internationalisation
of Italian Research (SIRIT 2010-15) integrates the
national research priorities in international
strategies and priorities, notably the EUs 2020
Strategy. Italy actively participates in EU R&D
programmes, the European Strategy Forum on
Research Infrastructures (ESFRI) and other European
initiatives such as EUREKA (for international S&T cooperation) and Erasmus (for mobility of students
and researchers).
Human resources: Italy has a dearth of highly skilled
human resources, and the most highly qualified
sometimes find better opportunities abroad.
During 2011/13 academics salaries and career
progression have been frozen in order to contain
public spending. A lack of opportunities and
unattractive career prospects and working conditions
for talented individuals may further weaken the
human resource base. A recent parliamentary act
aims to support the recruitment of early career
researchers. A new action plan for future youth
employment (Italia 2020) aims to better align
curricula with the changing demand of industry.
Emerging technologies: Italy is addressing various
cross-cutting research issues considered crucial for
enhancing economic growth, e.g. research on the
natural and cultural heritage and on the complex
systems of smart cities.
Green innovation: Italy has improved its RTA in
environment-related technologies over the past
decade and will soon develop a specialisation if this
trend continues (Panel 3). The government provides a
number of incentives for renewable energy
production. The Energy Account (Conto Energia)
initiative promotes solar photovoltaic, and a Kyoto
Fund was set up to finance measures to reduce
greenhouse gas emissions. Green Certificates (CV)

OECD SCIENCE, TECHNOLOGY AND INDUSTRY OUTLOOK 2012 OECD 2012

IV.10. SCIENCE AND INNOVATION: ITALY

promote electrical energy produced from renewable

sources and White Certificates energy efficiency
labels (TEE) encourage energy-saving measures. A

package of fiscal incentives for energy efficiency

interventions in existing and new buildings was
approved by Parliament in 2011.

Figure 10.24 Science and innovation in Italy

Panel 2. Structural composition of BERD, 2009

As a % of total BERD
OECD median
Italy

Panel 3. Revealed technology advantage in selected fields, 2007-09

Index based on PCT patent applications

OECD median (2005)

Italy (2005)

OECD median

Italy

EU27

Italy (1997-99)

2.0
25.3

9.0

4.8

Industry
% of PCT patent
applications filed by
universities and PRIs

100

Domestic firms

High-tech
manufacturing

80

1.5

60
40

SMEs

20

High-knowledge
market services

1.0

Large firms

0.5

Low-knowledge
services

Medium- to low-tech
manufacturing

Foreign affiliates

0.0
Bio- and nanotechnologies

Services

ICT

Environment-related
technologies

Panel 4. Overview of national innovation policy mix, 2010

Italy

OECD sample median

Italy (2005)

Public research

University-centred (1)

Public lab-centred (1)

Basic research oriented (1)

Applied/experimental research oriented (1)

Civil oriented (2)

Defence oriented (2)

Generic (2)

Thematic (2)

Institutional block funding (3)

Project-based funding (3)

Public support to business R&D and innovation

Support to business R&D and innovation (4)

Support to public research (4)

Direct funding of business R&D (5)

100/ 0
1.
2.
3.
4.
5.

Indirect funding of business R&D (5)

75/25

50/50

25/75

0/100

Balance as a percentage of the sum of HERD and GOVERD.

Balance as a percentage of total GBAORD.
Balance as a percentage of total funding to national performers.
Balance as a percentage of the sum of HERD and GOVERD funded by government and higher education and components of (5).
Balance as a percentage of the sum of indirect funding of business R&D and innovation through R&D tax incentives and direct funding
of BERD through grants, contracts and loans.

Source: See readers guide and methodological annex.

1 2 http://dx.doi.org/10.1787/888932690586

OECD SCIENCE, TECHNOLOGY AND INDUSTRY OUTLOOK 2012 OECD 2012

331