Regions, Innovation Systems, and the North-South Divide in Italy

TL;DR

This study analyzes Italy's regional innovation systems using firm-level data to assess the synergy among geographical, size, and sectoral factors, revealing a stronger North-South divide than traditional classifications.

Contribution

It introduces a novel analysis of Italy's innovation system using the Triple-Helix framework at multiple regional levels, highlighting the importance of considering North and South as separate subsystems.

Findings

Greater synergy within Northern and Southern Italy as two subsystems.

Regional contributions to innovation have increased over time.

Medium- and high-tech manufacturing and knowledge-intensive services are proportionally integrated across regions.

Abstract

Using firm-level data collected by Statistics Italy for 2008, 2011, and 2015, we examine the Triple-Helix synergy among geographical and size distributions of firms, and the NACE codes attributed to these firms, at the different levels of regional and national government. At which levels is innovation-systemness indicated? The contributions of regions to the Italian innovation system have increased, but synergy generation between regions and supra-regionally has remained at almost 45%. As against the statistical classification of Italy into twenty regions or into Northern, Central, and Southern Italy, the greatest synergy is retrieved by considering the country in terms of Northern and Southern Italy as two sub-systems, with Tuscany included as part of Northern Italy. We suggest that separate innovation strategies should be developed for these two parts of the country. The current focus on regions for innovation policies may to some extent be an artifact of the statistics and EU policies. In terms of sectors, both medium- and high-tech manufacturing (MHTM) and knowledge-intensive services (KIS) are proportionally integrated in the various regions.