This seminar got underway with the participants noting that the Italian industrial system has succeeded in weathering the global crisis whilst maintaining the country’s position as a leading manufacturer both in Europe and worldwide. The more or less stable performance of the Italian production system has enabled the economy to respond to stimulus, though the signs of recovery remain weak. In order to deal with this situation, it was felt necessary for the country to regain its competitiveness by drawing on its structural advantages, which include the flexibility of its small- and medium-sized enterprises and its territorial cohesion.
The biggest challenge facing Italy in seeking to reap the benefits of the recovery remains that of innovation. In this regard, the participants stressed that the local area level plays a key role because it serves both as a cohesive element for the various actors in the industrial process as well as a catalyst for the development of new economic and human resources. A local system that facilitates cooperation between worker representatives and employers and optimizes the use of investment in innovation and development is the only accelerator capable of stimulating growth and improving competitiveness.
The participants underlined that the first step that needs to be taken is to try and understand the changes that have taken place in the local-level organization of businesses. The crisis has, in part, altered Italy’s industrial landscape, bringing to prominence many areas which, whilst far away from large urban centers and areas with a greater concentration of infrastructure, have demonstrated an excellent capacity for responding to economic change. Consequently, it was felt that the country’s industrial policy needs to steer a path through the current difficulties by providing mechanisms for improving the competitiveness of this geographically diffuse industrial system.
In this regard, there remains the question of how to encourage the growth in size of Italian businesses. The country’s small- and medium sized enterprises have demonstrated that they have the flexibility needed to cope with the economic situation, but, in order to latch onto the recovery, they must embark on a process of agglomeration. The positive results seen with industrial districts in Italy indicate that it is necessary to continue to create supply chains that are capable of encouraging cooperative partnerships between large and medium-sized firms. The participants observed that business networks represent a promising avenue in this regard, as they enable production platforms to be created whilst preserving the autonomy of individual businesses. It is still open to debate, however, as to whether there is a need for a new regulatory framework both to overcome the mechanisms that currently discourage growth in business size, as well as to give business networks the ability to act as a collective entity in dealings with suppliers and banks.
It was emphasized that financial institutions in particular, through their local area presence, play a key role in stimulating the competitiveness of Italian businesses. Italy boasts a varied banking system, consisting of banking groups of different sizes which reflect the diversity of the country’s production system and are capable of working closely with local businesses. This peculiar characteristic, the participants noted, should be put to good use by encouraging the provision of credit to the real economy and devising changes to prudential requirements that do not penalize commercial banking activities at the expense of financial intermediation activities.
Indeed, during the seminar discussions it was highlighted that supporting the real economy not only ensures greater resilience in times of crisis, but also provides a valuable buffer against a rise in unemployment. Achieving this goal requires both a dynamic policy that revamps the education system to make it responsive to the needs of the production system, as well as measures to support more vulnerable segments of the population.
In conclusion, it was acknowledged that the creation of new balances, in which market efficiency is combined with the pursuit of greater social cohesion, must stem from dialogue between the public and private sectors. In designing models for subsidiarity at local level, it is not only the contribution of the non-profit sector that is necessary, but businesses must also play an active role. While there is still much debate over models for employee involvement in corporate governance, corporate social responsibility – if linked to a local-area focus – can act as a valuable tool in furthering the social and economic development of the country.