This National Interest roundtable served as an opportunity to present and discuss the preliminary findings of the study initiated by Fondazione Enel, in conjunction with the LUISS Guido Carli University and Aspen Institute Italia. Those in attendance were provided with an abridged version of the final report which will be presented in the fourth quarter of the year.
Based on these summary findings, it was noted that, in the current global economic climate characterized by a sharp contraction in domestic demand, Italian firms have managed to respond well by virtue of exports, but in order to be able to compete successfully in world markets it is necessary for the country to provide them with effective support by putting in place both tangible and intangible infrastructure resources that are apt to make a difference.
The participants stressed that of particular importance in this regard are intermodal transport and logistics systems, delays in the introduction of which – due to red tape and parochially-motivated crossed vetoes – were deemed no longer acceptable. In addition, it was observed that the availability of ample and efficient energy supplies would undoubtedly be beneficial for Italian businesses. Unfortunately, however, Italy’s heavy dependence on foreign supplies and difficulties in developing stockpiling facilities are translating into increased costs for businesses, with a corollary impact on the price of goods.
The current business credit crunch – particularly punishing for an industrial landscape populated predominantly by SMEs – was viewed as needing to be redressed through new forms of financing, geared especially to attracting foreign direct investment. It was further considered that a major role could be played by reforms aimed at reducing – if not eliminating – negative factors such as excessive labor costs, the lack of clear time limits for the granting of permits, and the proliferation of legislative superstructures whose incomprehensibility and complexity put off those wishing to embark on a business venture or invest in Italy.
In rounding off the discussion, several participants highlighted that building up infrastructure levels does not always involve large investment. Indeed, it was noted that in Italy there is no shortage of high achievers both in industry and research, though mechanisms are not in place to adequately support them. For instance, it was felt that an overhaul of residence permits would be desirable, in order to distinguish between the case of non-EU researchers temporarily engaged in Italy, so as to make it easier for them to stay, and other cases that should be governed by different standards. A final recommendation was that support should be provided for small businesses navigating patent application procedures, in order that appropriate protection be afforded to the fruits of their ingenuity.