Kicking off this roundtable discussion was the observation that, in the coming years, exports are set to be the engine of growth for all European countries and, in particular, for Italy. Indeed, the rapid development of emerging economies suggests not only increasing imports of capital goods, but also of consumer goods. It was therefore seen as imperative for an economy as traditionally export-oriented as Italy’s to understand how to seize the opportunities opening up in global markets.
Given this scenario, and in the face of the growing influence of emerging economies in international trade, Italy has defended its market shares well, repositioning its exports towards higher-quality and greater-innovation products. Nevertheless, against a backdrop of mounting competition – which sees the country ranked second in Europe only to Germany, but with a greater presence in all new markets, especially in Africa – Italy needs to take stock of its strengths and weaknesses to formulate strategies which support exports.
As far as its strengths are concerned, the participants pointed to the country’s advanced ability to customize its offerings, its substantial capacity for flexibility and its considerable flair for forging new business relationships, as well as its rich range of products. This is combined with an ability to preserve supply chains, a strong manufacturing base, and a robust and internationalized banking system. It was acknowledged, however, that there are certain critical issues that need to be resolved, with efforts needing to be focused on three areas that are key to reviving the country’s fortunes: innovation, internationalization and growth in business size.
Indeed, the small size of Italian firms was considered to be reflected not just in their limited capital base, but also in the difficulties they encounter in internationalizing production and sales. It was noted that there are strategies to address the problem of the small size of Italian businesses, such as agglomerations of enterprises, which enable competitiveness to be enhanced. Yet it was also seen as necessary to encourage the resort to venture capital and to support mergers and acquisitions through tax measures. Other incentives viewed as desirable were of a regulatory nature, with the participants stressing that it is not just a question of removing obstacles that have up until now deterred medium-sized firms from listing on the stock exchange, but also of gradually changing rules that even now reward those who stay small.
A further point considered worthy of debate concerned innovation processes, which, in small- and medium-sized Italian firms, are often not particularly systematic or embedded. However, in order to exploit the opportunities innovation offers, merely increasing investment in research and development was not seen as being sufficient, It was felt that there is also a need to come up with structural tax incentive mechanisms that support the research activities carried on by businesses. Such policies would enable the flight of businesses to other countries to be stemmed and would improve Italy’s international appeal, allowing it to attract skilled human capital.
In addition, with a view to promoting the internationalization of Italian firms, further systemic efforts were called for that build on international best practices. A key issue singled out in this regard related to the provision of financial support for firms expanding overseas, an area which in recent years has seen increased efforts on the part of both public and private organizations. There was a perceived need for these to be combined with planning efforts in the industrial policy sphere that identify strategic sectors and areas for Italian exports. Lastly, it was felt that the ways in which the foreign activities of Italian businesses are supported could do with an overhaul. Alongside improving the efficiency of the relevant government agencies, this would also extend to the key players involved in promoting the Made-in-Italy sector, such as the exhibition and fair circuit.