Italy : key issues and policies

209 Pages·2014·2.535 MB·English

by  OECD

OECD Studies on SMEs and Entrepreneurship
ITALY
KEY ISSuES AnD POLICIES
OECD Studies on SMEs and Entrepreneurship
Small and medium enterprises and entrepreneurs are the backbone of the Italian economy. However,
notwithstanding their strong physical presence, the Italian SME sector is strongly weighted towards micro ITALY
enterprises with relatively low productivity, while more dynamic medium-sized firms and high-impact
entrepreneurship are limited in scale. For the future, it will be important to lower the barriers that prevent
business expansion, including through support for equity finance, a renewed approach to workforce skills
KEY ISSuES AnD POLICIES
development and increased university engagement with SMEs.
Contents
Chapter 1. SME and entrepreneurship issues and policies in Italy: Assessment and recommendations
Chapter 2. SME and entrepreneurship performance in Italy
Chapter 3. Business environment and framework conditions in Italy
Chapter 4. The strategic framework and policy delivery system in Italy
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Chapter 5. National programmes for SMEs and entrepreneurship in Italy E
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Chapter 6. The local dimension to SME and entrepreneurship policy in Italy D
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Chapter 7. Local industrial clusters in Italy
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85 2014 05 1 P

OECD Studies on SMEs and Entrepreneurship
Italy:
Key Issues and Policies
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Please cite this publication as:
OECD (2014), Italy: Key Issues and Policies, OECD Studies on SMEs and Entrepreneurship,
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http://dx.doi.org/10.1787/9789264213951-en
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Series: OECD Studies on SMEs and Entrepreneurship
ISSN 2078-0982 (print)
ISSN 2078-0990 (online)
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FOREWORD
Foreword
S
mall and medium-sized enterprises (SMEs) and entrepreneurs are major drivers of innovation,
economic growth and job creation, and play a critical role in social cohesion. They are essential to
the Italian economy. This review underlines some important points of strength with respect to Italian
SMEs and entrepreneurship. Italy can be characterised as an SME economy, with very large numbers
of SMEs and entrepreneurs. Italian medium-sized firms very often excel in their market niches and,
on aggregate, their productivity exceeds that of their peers in countries such as Germany and France.
Italian SMEs have a strong propensity to business collaboration, as found for example in many world
class industrial clusters. The Italian business environment is also favourable to business start-ups.
The time needed to open a business is shorter than in most other OECD countries. Administrative
burdens on firms, especially those of small size, are also low thanks to simplification of rules and
procedures during the last 10 years. Important steps have also been taken by the government to
help SMEs negotiate the crisis by improving their access to finance; for example the resources of
the national credit guarantee fund have been increased and the government has brought forward
payments of state commercial arrears to private-sector firms.
But there are also areas of weakness. The global economic crisis has hit hard in Italy, which has
suffered a double-dip recession that has seen a reduction in the total stock of SMEs. Furthermore, the
Italian SME sector is dominated by micro and small firms, whereas productivity would be greatly
enhanced if the country were able to generate more high-productivity medium-sized companies
and high-impact entrepreneurship. For this to happen, barriers to business growth have to be
removed, including reducing the tax wedge on labour, streamlining the Italian tax system, favouring
competition, attracting and embedding foreign direct investment, supporting the growth of equity
finance and improving the training and skills of SMEs and entrepreneurs. The coherence of national
and local policies also needs to be increased, including the contribution of SME and entrepreneurship
programmes to the development of the south, and policies for industrial clusters rethought to enable
diversification and upgrading. The nature of these challenges is set out in this report together with
recommended policy responses.
The study is one of a series of OECD country reviews of SME and entrepreneurship issues and
policies, which provide a tool for assessing and improving the design and implementation of SME
and entrepreneurship policies and programmes in specific countries and for sharing experiences
across countries. They benchmark SME and entrepreneurship performance, explore the business
environment for SMEs and entrepreneurs, assess policies and programmes specifically targeted on
SMEs and entrepreneurs and offer recommendations for improvements. The reviews are based on a
standard methodology including a diagnostic questionnaire completed by the national authorities,
study missions and fieldwork, and a peer review of the report by Delegates in the OECD Working
Party on SMEs and Entrepreneurship.
OECD STUDIES ON SMEs AND ENTREPRENEURSHIP: ITALY © OECD 2014 3
FOREWORD
This review was requested by the Italian SME Envoy (i.e. Garante Nazionale delle PMI),
Mr. Giuseppe Tripoli, with a view to providing analysis and advice to Italian policy makers, SMEs
and SME stakeholders. Mr. Tripoli’s comments and feedback have also been helpful in steering the
work of the OECD secretariat towards the issues of greatest relevance to entrepreneurship and SME
development in Italy. The OECD will continue to work with the Italian government to push reforms
forward in entrepreneurship and SME development, which are critical for recovery from recession
and renewal with economic growth.
Sergio Arzeni
Director of the Centre for Entrepreneurship, SMEs and Local Development
OECD
4 OECD STUDIES ON SMEs AND ENTREPRENEURSHIP: ITALY © OECD 2014
TABLE OF CONTENTS
Table of contents
Acknowledgements ......................................................... 11
Abbreviations............................................................... 12
Basic statistics of Italy ....................................................... 14
Executive summary ......................................................... 15
Chapter 1. SME and entrepreneurship issues and policies in Italy:
Assessment and recommendations.................................. 19
SME and entrepreneurship performance.................................... 20
Business environment and framework conditions ........................... 22
The strategic framework and delivery system for policy....................... 25
National SME and entrepreneurship programmes............................ 27
The local dimension of SME and entrepreneurship policy ..................... 33
Industrial clusters ....................................................... 35
Chapter 2. SME and entrepreneurship performance in Italy....................... 37
The size and structure of the SME sector ................................... 38
Productivity, exports and innovation ....................................... 46
Entrepreneurship and business demography ................................ 51
Social target groups ..................................................... 55
Social enterprises, co-operatives and artisanal firms ......................... 62
Conclusions and recommendations........................................ 66
Notes .................................................................. 67
References ............................................................. 67
Chapter 3. Business environment and framework conditions in Italy .............. 69
Macroeconomic conditions ............................................... 70
Product market conditions ............................................... 72
Business regulation ..................................................... 73
Human resources ....................................................... 78
Access to finance........................................................ 80
Taxation and social security affecting new and small enterprises .............. 85
Transparency and the rule of law .......................................... 86
The innovation system................................................... 86
Foreign Direct Investment ................................................ 89
Conclusions and recommendations........................................ 91
Notes .................................................................. 92
References.............................................................. 93
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TABLE OF CONTENTS
Chapter 4. The strategic framework and policy delivery system in Italy ............ 95
The strategic framework for policy formulation.............................. 96
The policy delivery system................................................ 101
Conclusions and recommendations ....................................... 103
References ............................................................. 104
Chapter 5. National programmes for SMEs and entrepreneurship in italy........... 105
Financing............................................................... 106
Innovation support ...................................................... 114
Internationalisation support .............................................. 121
Entrepreneurship education .............................................. 127
Workforce training....................................................... 133
Consulting, business services and management training ..................... 144
Public procurement...................................................... 146
Policies for specific social target groups .................................... 149
Social enterprises ....................................................... 154
Corporate social responsibility ............................................ 157
Conclusions and recommendations........................................ 158
References.............................................................. 161
Chapter 6. The local dimension to SME and entrepreneurship policy in Italy........ 165
Regional differences ..................................................... 166
Policy co-ordination...................................................... 173
Local business regulation ................................................ 181
Conclusions and recommendations........................................ 185
Notes .................................................................. 186
References.............................................................. 187
Chapter 7. Local industrial clusters in Italy ..................................... 189
Italian clusters today..................................................... 190
Current challenges for Italian cluster policies ............................... 192
Conclusions and recommendations ....................................... 199
Notes .................................................................. 202
References.............................................................. 202
Tables
2.1. Contribution to total business population, employment and value-added
by business size class and economic sector, 2012.......................... 42
2.2. Exporting enterprises by size class in Italy, 2010........................... 50
2.3. Performance of exporting firms versus non-exporting firms, 2011 ........... 50
2.4. Foreign-born business owners and co-owners, 2005-11..................... 62
2.5. Distribution of social enterprises by legal form, 2011 and 2010 .............. 63
2.6. Distribution of social enterprises (all legal forms) by macro region,
2001-11.............................................................. 64
2.7. Actual and potential ‘social enterprises’ in Italy, 2011 and 2009 ............. 64
2.8. Total number and incidence of co-operatives by region, 2013 ............... 65
6 OECD STUDIES ON SMEs AND ENTREPRENEURSHIP: ITALY © OECD 2014
TABLE OF CONTENTS
3.1. Proportion of enterprises offering training, 2010 and 2005
Percentage values..................................................... 80
3.2. SMEs reporting access to finance as most pressing problem,
2009 and 2012-13 ..................................................... 82
5.1. School education aroused an interest in becoming an entrepreneur,
percentage of adult respondents who totally agree, EU27, 2012.............. 128
6.1. Share of EU Structural Fund spending on entrepreneurship related
activity in selected countries, 2007-2013 ................................. 171
6.2. Number of regional laws and regulations, 2008 ........................... 182
7.1. Key figures for Italian clusters, 1991-2010 ................................ 191
Figures
2.1. Enterprise by size class, 2010 or latest available year ...................... 38
2.2. Employment by enterprise size class, 2010 or latest available ............... 39
2.3. Value added by enterprise size class, 2010 or latest available year ........... 40
2.4. Enterprises by size class in manufacturing, 2010 or latest available year...... 41
2.5. Employment by enterprise size class in manufacturing,
2010 or latest available year............................................ 41
2.6. Business density rate in selected OECD countries, 2010 .................... 42
2.7. Rate of self-employment in EU countries, 2010............................ 43
2.8. Size of the informal economy across OECD countries, average
1999-2007............................................................ 44
2.9. Value added produced by the informal economy in Italy, 2000-2008.......... 44
2.10. The relationship between micro-enterprises and the informal economy ..... 45
2.11. Share of young enterprises (aged 3 years or less) in manufacturing
and services sectors, 2010 or latest available year ......................... 45
2.12. High-growth firms in selected OECD countries, 2010 and 2006 .............. 46
2.13. Gazelles in selected OECD countries, 2010 and 2006 ....................... 47
2.14. Gaps in productivity of Italian SMEs with SMEs in Germany, France
and the UK, 2010 ..................................................... 47
2.15. Proportion of SMEs with direct export activity, 2006-2008................... 49
2.16. Exports by enterprise size class, 2010 or latest available year................ 49
2.17. Proportion of internationalised SMEs, 2006-2008 .......................... 51
2.18. Business enterprise R&D by firm size, 2010 or latest available year........... 51
2.19. Innovative enterprises in Italy by sector and size class, 2008-2010 ........... 52
2.20. Innovative enterprises by type of innovation, sector and size class,
2008-2010............................................................ 52
2.21. Preference for self-employment across EU and selected
other countries, 2012.................................................. 53
2.22. Feasibility of self-employment across the EU and selected
other countries, 2012.................................................. 53
2.23. Total early-stage entrepreneurial activity (TEA) rate, 2012 .................. 54
2.24. Perceptions of individuals about existing market opportunities
and personal entrepreneurial capabilities, 2012........................... 55
2.25. Employer enterprise birth and death rates, 2010 or latest available year ...... 56
2.26. Employer enterprise birth and death rates in Italy, 2005-2010 ............... 56
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TABLE OF CONTENTS
2.27. Employment creation by employer enterprise births and employment
destruction by employer enterprise deaths, 2010 or latest available year...... 57
2.28. Employment creation by employer enterprise births and employment
destruction by employer enterprise deaths in Italy, 2006-2010............... 57
2.29. Self-employment rates of women compared to men, 2011.................. 58
2.30. Distribution of women’s necessity-driven and opportunity-driven
total entrepreneurial activity (TEA) across selected OECD countries, 2012..... 59
2.31. Share of female enterprises out of the total by region in Italy, 2011 .......... 59
2.32. Youth and senior self-employment rates across selected OECD countries,
average 2009-11 ...................................................... 60
2.33. Youth and senior Total Entrepreneurial Activity (TEA) rates,
2007-11 mean ........................................................ 60
2.34. Foreign-born and native-born self-employment rates, average 2009-11....... 61
2.35. Incidence of artisanal firms by region, 2012............................... 66
3.1. Italian GDP volume, 2002-2014.......................................... 70
3.2. Public debt in large EU economies, 2002-2014............................. 71
3.3. Long-term interest rates on government bonds, 2007-14 ................... 71
3.4. GDP growth rates, 2002-2014 ........................................... 72
3.5. Product market regulations in OECD countries, 2003-2013 . . . . . . . . . . . . . . . . . . 73
3.6. Product market regulations in Italy by macro policy area, 2003-2013 ......... 74
3.7. Barriers to entrepreneurship in Italy (detailed indicators), 2003-2013......... 74
3.8. Number of days to open a business, 2012 and 2003 ........................ 75
3.9. Number of Procedures, time and cost to open a business in Italy
and in the OECD, 2014................................................. 76
3.10. Number of procedures, time and cost to enforce contracts in Italy
and in the OECD, 2014 ................................................ 76
3.11. Government expenditure on educational institutions, 2009 and 2000 ........ 79
3.12. Distribution of government expenditure on core educational
services, 2009 ........................................................ 79
3.13. Proportion of firms seeking loan finance, 2010 ............................ 81
3.14. Ease of access to loans, 2009-2010....................................... 81
3.15. Distribution of total bank lending in Italy, 2011 ........................... 82
3.16. Venture capital investment, 2012 ....................................... 83
3.17. Corporate income tax rate, 2013 ........................................ 86
3.18. The corruption perception index, 2013................................... 87
3.19. R&D intensity in manufacturing and high- and medium-high-tech
manufacturing, 2008 or latest available year ............................. 88
3.20. Proportion of enterprises with innovation activity, 2008-2010 ............... 88
3.21. Inward FDI stocks, 2011................................................ 90
3.22. Inflows of FDI in selected OECD economies, 2006-2011..................... 90
6.1. GDP per capita by region, 2012.......................................... 167
6.2. Key regional labour market indicators, 2009 and 2010...................... 167
6.3. Employment rates by sector and by region in Italy, 2012.................... 168
6.4. Enterprise densities, birth rates and death rates by region, 2012............. 169
8 OECD STUDIES ON SMEs AND ENTREPRENEURSHIP: ITALY © OECD 2014