Culture is good for the life and development of cities, and even more so for enterprises, as a mainstay for new and improved competitiveness. As a matter of fact, a few years ago entrepreneurial association Confindustria launched an initiative to nominate, every year, a “Corporate Culture Capital” – 2024 sees Turin taking its turn after Genoa, Alba, the Padua-Treviso-Venice triangle and Pavia. The award was announced last week at the Confindustria’s Piccola Industria (Small Industry) Forum in Pavia and is a fitting reward for the city’s programme, aptly entitled: “Torino. Spazio al futuro” (“Turin: ushering in the future”). A meaningful project dedicated to enhancing business activities within a territory that, though historically at the productive heart of Italy – revolving as it was around the automotive industry – for some time now has had to deal with shifting manufacturing assets linked to the new directions taken by Stellantis (formerly Fiat), and as such has decided to look at other industrial avenues instead (which we’re about to see).

Of course, automotive continues to be a leading sector, but no longer retains the productive and cultural supremacy it used to enjoy (though it is vitally important that Turin remains an engineering, planning and production hub). A metropolis in evolution, then, with neither regrets nor the bitter after-taste left by amarcord, nostalgic memories.

Turin’s schedule comprises a number of initiatives linked to 24 events, especially designed to engage the new generations, as well as other Italian and European cities. Starting with the Piedmont region, for instance, we find Biella, famed for its quality textile manufacturing, and Ivrea, the birthplace of Olivetti, a company that made Italian industrial history and whose economic, social and cultural legacy still fuels Italian public debates (as recently evidenced by Adriano Olivetti. Un italiano del Novecento (Adriano Olivetti. An Italian Man from the 20th century), book written by Paolo Bricco and published by Rizzoli).

There’s another important aspect we mustn’t neglect, however: strengthening the connection between Milan and Genoa, so as to fully relaunch the industrial north-west as a European productive platform, including the Emilia-Romagna region’s ‘Motor Valley’ as well as the manufacturing chains in the north-east – an ambitious plan to boost Italy’s progressive industrial attitude.

Giorgio Marsiaj, president of Turin’s entrepreneurial association Unione Industriali, asserts that “our challenge is to help redesign the city, identifying sustainable solutions in environmental, economic and social terms and applying an approach focused on inclusion and care for local communities.” Objectives include “attractiveness, both in terms of investments and, especially, young people: making Turin appealing to fresh talent is the best way to combat the demographic decline and inject dynamism and new ideas into our economic and entrepreneurial system.”

Indeed, though Turin has always been renowned for its manufacturing nature, it can now also feel proud of its increasingly distinct “propensity for innovation, as it tackles our history’s latest critical evolution and shifts from an automotive monoculture to a structured range of activities – from aerospace to Artificial Intelligence, from the food industry to the tourism and sport sectors.” Activities that, as Marsiaj reiterates, represent sources of new energy; different perhaps than the previous ones, “yet sharing the same DNA: a solid industrial culture combined with a passion for things well made. And let’s not forget its international exposure, which turns this area into a global workshop, thanks to the presence of major multinationals and our enterprises’ natural predisposition to export.”

As the initiatives unfold – including traditional events such as the Salone del Libro book fair and the Salone del Gusto gastronomy fair – their connection to all facets of a genuine “polytechnic culture” will become more apparent: a unique blend of science, technology and humanities, quality and functionality, the appreciation for past expertise mingled with an attitude for process and product innovation.

Indeed, when territories and their own enterprises connect, a special kind of sensitivity arises, permeating all aspects of environmental and social sustainability, and translating into a strong desire for quality – not only quality of goods but also quality of the sites where such goods are produced and where people work, such as the so-called “beautiful factories”: well-designed, innovative, bright, welcoming, safe and, as mentioned, sustainable. A prime example is the Pirelli Industrial Hub in Settimo Torinese, designed by Renzo Piano, with its high-tech facilities located in a plant surrounded by 400 cherry trees.

Quality manufacturing – hands that conceive and innovate, productive intelligence that improves the quality of life for everyone.

After all, good enterprises are distinguished by far-reaching strategies linking culture to production processes and industrial narrative to products and production. This is what we learned from crane rigger Libertino Faussone, the protagonist of Primo Levi’s La chiave a stella (The wrench), a poetic tribute to mechanical engineering skills, published in the 1970s by Einaudi, yet another prestigious enterprise from Turin renowned at European level. And we should also continue to foster the relationships binding manufacturing, services, creativity and scientific research, as technology evolves and is narrated through the arts by writers, poets, architects, film directors and photographers, famous advertising illustrators and designers – a civilisation consisting of images and words, individuals and machines.

This is in fact what we can find in the archives of Italian companies – and Turin can boast of some illustrious examples – in point of fact, Museimpresa (the Italian Association of business archives and corporate museums) counts as many as 140 members and institutional supporters (of which 14 are well established in Turin and in the Piedmont region).

Underlying it all, is the belief – firmly entrenched by now – that enterprises, factories, financial services companies, commercial and cultural institutions, are all both physical and intellectual spaces where past and future meet, and in which corporate culture represents a key asset for competitiveness.

Indeed, corporate culture means Culture with a capital C – it encourages us to break free from the traditional framework confined by the phrase “enterprise and culture” and start instead a dialogical relation between different dimensions such as manufacturing and representation, production and narration, mechanical engineering and philosophy or poetry, leading us towards a more radical concept we should embrace: “enterprise is culture”. As a matter of fact, doing business means building culture and any enterprise will make clear cultural choices influenced by the above-mentioned criteria – criteria actually championed by Italian enterprises, especially manufacturing ones.

And culture encompasses science and technology, designing new materials, the development of employment contracts taking into account key cultural factors such as power relations, monitoring functions, individual opinions, salaries and corporate welfare. Culture entails the inception of marketing and communication languages. Culture implies governance processes managing the relations between company, shareholders, CEOs, employees and the whole wide range of stakeholders. Culture involves budgets, planning tools and settling accounts. Culture consists of open and well-regulated markets.

And further, culture necessitates corporate sponsorships and support for creative and artistic activities representing corporate culture, building it up in the imagination of both individuals and society at large (Turin’s Consulta organisation, whose aim is the enhancement of artistic and cultural wealth, is significant proof of this).

Corporate culture is, essentially, a choral and polyphonic narrative, an orchestral interplay always in flow.

Such corporate culture encapsulates a sense of beauty and téchne (the know-how of good factories) and the quality of products and production systems, creating a dialogue with research and education in polytechnic institutions and universities, illustrating how an entrepreneurial society will galvanise the development of factories (the Lingotto plant is a prime example of this), banks and insurance companies, stimulating the creativity of publishing houses and academic centres and, over time, also boosting the communication industry – cinema, radio and television – through a focus on cutting-edge technologies and content.

A culture that, moreover, comprises Nobel prize winner Giulio Natta and his chemical discoveries, which revolutionised the Italian industry and gave it worldwide appeal, and Primo Levi’s chemical and literary efforts at the Sava factory in Settimo Torinese (his Il sistema periodico – The periodic table – published by Einaudi in 1975 is a glaring instance of this).

Also culturally prominent is Adriano Olivetti‘s company – as mentioned above – distinguished by state-of-the-art research marked by beauty and quality, design and technology, appreciation of past local expertise combined with the most exciting international high-tech novelties. And we should include Pirelli’s “industrial humanism” and its groundbreaking tyre applications, too, as well as a long list of industrial and financial companies whose success continues to rest on quality and unique aesthetics as well as their engagement with contemporary art and design, allowing them to conquer the most prestigious high-added-value niches in the global markets.

The events scheduled by Turin, 2024 Capital of corporate culture, will thus help us get better acquainted with all this, bringing to light and life an exceptional contemporary civilisation founded on labour and creativity, whose dense and diverse fabric distinguishes the entrepreneurial history of Turin and, accordingly, of the whole country.

(foto: Getty Images)

A recently published book explores the historical relations between technology and prosperity – to understand the present and get ready for the future

How to reconcile the power of technology with balanced development and progress, with the goal of reaching prosperity for all, and at all times? Essential objectives that should not merely be taken for granted. Accomplishments that should enhance social life and a production culture that places well-rounded individuals – and the whole of humanity – at its heart. To understand how we could attain all this, we also need to understand all that has already been achieved and Potere e progresso. La nostra lotta millenaria per la tecnologia e la prosperità (Power and progress. Our thousand-year struggle over technology and prosperity) – written in collaboration by Daron Acemoglu Simon Johnson (both professors at the MIT in Boston) – helps readers do just that.

The book, recently published in Italy, attempts to answer one question: what actually is progress? A question that leads to many others, accompanied by as many answers linking past to present. The two authors focus on technological change – from medieval agricultural advancements to the Industrial Revolution and our current Artificial Intelligence – as the main driver for prosperity, something that should have brought us only benefits but whose impact was actually rather varied depending on who had control over it. Acemoglu and Johnson debunk the modern myth of techno-optimism (actually, of techno-optimism in any age) – true enough, we are doing much better than our ancestors, but the extensive range of innovations that arose over the last thousand years did not lead to widespread common welfare at all. What can we do, then? According to the two economists, we need a new and more inclusive vision of technology, a perspective that can arise only when social and production systems realise that innovation must really serve everyone. Acemoglu and Johnson conclude their extensive account of past and present progress and technology by illustrating how we could act: technological progress should be steered into a more general direction; digital technologies should be reconfigured; social relations, together with institutional activities and policies, should aim to refine the concrete tools required for an intervention. The stated final goal, as we said above, is a single one: ensuring that technology gives rise to new jobs and new opportunities rather than marginalising the majority of people. Of further notice and usefulness is the bibliography included at the end, almost a book in itself.

Just like any work concerning theory as well as practice, not all readers may agree with all that Acemoglu and Johnson’s latest literary effort contains, but these approximately 600 pages on the “thousand-year struggle over technology and prosperity” are nonetheless worth a careful read.

Potere e progresso. La nostra lotta millenaria per la tecnologia e la prosperità (Power and progress. Our thousand-year struggle over technology and prosperity)

Daron Acemoglu, Simon Johnson

il Saggiatore, 2023

A thesis debated at the University of Padua effectively summarises the relations between two key elements in modern corporate management

Gender equality and ESG (Environment, Social and Governance) standards – important concepts to be fully comprehended and implemented, though not always an easy path to follow, especially for small and medium enterprises. It is around these issues that Maura Massara’s study revolves, a thesis debated at the University of Padua’s Department of Political science, law and international studies.

Entitled “Parità di genere e sostenibilità sociale: il contributo dell’indice ‘Environmental Social and Governance’” (“Gender equality and social sustainability: the contribution of the Environmental, Social and Governance index”), the study summarises the existing relations between a key aspect of corporate management – the attainment of gender equality – and the indications entailed by the ESG index, which encapsulates a number of requirements that, nowadays, all good enterprises must necessarily fulfil.

Thus, the work begins by looking at the ‘S’ in ESG – social sustainability – with a particular focus on gender equality.

Massara’s study follows a simple structure: first of all, it explains and analyses the ESG index according to its three key traits; then it provides a more in-depth exploration of “gender equality within social sustainability”; and finally it looks at a start-up project set up in 2022 with the aim of assisting small and medium enterprises in keeping up-to-date with all topics inherent to ESG, so that no company would be penalised by the index, especially in terms of gender equality. This outlines a particular aspect of a corporate culture that must be increasingly shared by all types of production organisation.

As Maura Massara concludes, “The promotion of social sustainability, including gender equality, is no longer a mere gratuitous act but a valuable corporate strategy.” And indeed, Massara’s thesis provides an excellent overview of such a complex and constantly evolving theme.

“Parità di genere e sostenibilità sociale: il contributo dell’indice ‘Environment Social and Governance’” (“Gender equality and social sustainability: the contribution of the Environmental, Social and Governance index”)

Massara Maura

Thesis, University of Padua, Department of Political science, law and international studies

Degree in political science, international relationships and human rights, 2023

Here we are then – the Italian economy is at “zero growth”, as reported by Istat in this year’s third quarter, and this will drag on to the fourth quarter and to next year, so that the expected 0.5% GDP rise predicted by the Centro Studi Confindustria research centre seems like a much more realistic rate than the preposterous 1% – even 1.2% – forecasted by the government. No recession as yet, at least (the only EU country affected is Germany, which is however Italy’s main trade partner and the country where most Italian sub-supply chains are located), though fears of a slow-down, and therefore further and greater disproportion between public debt and GDP, are certainly justified.

Still, according to Istat statistics, there’s no negative impact on employment – in September 2023, the number of jobs went up by 42,000 units as compared to the previous month, and a year-on-year comparison shows an increase of 512,000, of which the vast majority (443,000) are permanent roles. “Plenty of work, little GDP”, is the concise comment by Dario Di Vico in Il Foglio (4 November), accompanied by “stagnant productivity yet rising employment rates”. Di Vico offers two possible explanations for this phenomenon, which may be engendered either by “resilient” companies holding on to their workforce while waiting for an impending recovery (inflation is going down, the rates will stabilise and investments will resume) or – a more pessimistic view – by a rise in low-cost, low-paid jobs, as it often happens in times of crisis.

Only time – and updated figures – will tell which trends will prevail in the near future. One thing that remains unchanged, however, is the difficulty experienced by enterprises in finding the right people to fill available roles (the latest cry comes from mechanical engineering factories in the north-east of Italy – la Repubblica, 28 October). Moreover, ‘baby boomers’ – those born in the 1950s and 1960s – are now of retirement age – at a rate of half a million per year – and, according to Prometeia, “looking at a period up to 2030, only 400,000 people per year are available to take their place, which means a shortage of 100,000 units per year that will not be easy to address” (la Repubblica, 3 November).

Yet, despite all this, Italy is a ship that sails on, thanks to the persistent and obdurate effort of manufacturing enterprises that even in such difficult times continue to produce, innovate, invest and tackle the complex environmental and digital twin transition by exporting goods and conquering new higher added-value niches in the international markets (as attested and explained in last week’s blog post).

But they can’t do it all on their own – businesses are in need of wise European political decisions in line with the long-term strategies guiding the current development of the “knowledge economy”. Instead, what’s been introduced is a financial policy “devolving just 8% to enterprises” and unable to support investments, as entrepreneurial association Confindustria has now been repeating for a long time, while the EU also failed to implement proper common policies to address both the American IRA (Inflation and Reduction Act) and the monumental investments that China made to support its own high-tech companies.

Here’s the key question we need to answer to deflect a dangerous decline: how should we proceed? Marco Buti and Marcello Messori – a long-standing senior civil servant in EU commissioner Paolo Gentiloni’s cabinet and an authoritative economist in EU matters respectively – provide some good food for thought through a series of articles published in Il Sole24Ore (14 and 22 September), such as “The paths Italy must follow for a relaunch” and “A productive model to propel the EU into the future.”

According to Buti and Messori, “an effective integration of the European single market, which would be an asset for the region,” is difficult because “the danger of stagflation has not yet been fully averted” due to a production system dominated by Germany, relying on export goods manufactured through dependable yet obsolete technologies by small non-progressive companies dependant on just a few precarious energy providers (the Russian invasion of Ukraine has dramatically aggravated a glaring long-lasting issue) and on insufficiently competitive high-tech services.

We are seeing “European delays concerning the digital sphere and Artificial Intelligence as compared to the United States and China” and “new divergence risks within the EU”, accentuated indeed by the “relative weakness of the German economy, which is impacting those countries more deeply integrated into its value chain (The Netherlands and Italy).”

Basically, “without a change of pace,” the European economy “may be doomed to fall into a marginal role and its social model may progressively deteriorate.” Further, “stagnant demographics” are exacerbating the situation, so that “only if the EU succeeds in building a more competitive production system its wealth can be safeguarded.”

But how? “We already know what needs doing, which is at the heart of the initiative implemented in response to the pandemic shock: the Next Generation EU agreement, which entails a triple – ‘green’, digital and social – transition.” In other words, the answer lies in sharing European resources so as to attain a competitive level of sustainability, strengthen the knowledge economy, and enhanced education and research.

An “impervious path”, no doubt, yet a necessary one, on which we can embark by “consolidating the European fiscal capacity through an efficient allocation of member states’ public and private resources.”

A more integrated Europe, then, without forgetting security issues and EU common funds devolved to sourcing energy and strategic raw material.

Quite the opposite of new nationalist agendas whereby each single country sees Europe like a personal cash dispenser, ignoring common constraints, obligations and values.

And what about Italy? Buti and Messori believe that it is in Italy’s best interest to “break the current institutional stalemate concerning EU economic governance” and approve the “new fiscal policies that, in line with the proposal made by the Commission last April, would fine-tune national budgets in keeping with each country’s individual traits and with due respect for macroeconomic growth and fiscal sustainability.” These would indeed be key policies for Italy, which owing to its exceedingly high public debt has very little room for manoeuvre in terms of public funds available for productive investments and corporate incentives. Finally, the situation would also further improve through a fast approval of the ESM’s policies.

Secondly, “We should ensure that significant private holders of Italian wealth provide not only liquid instruments but also activities funding production”, and again, with appropriate tax incentives and a very different take on taxation – i.e. seen as a benefit to investors and manufacturers rather than as a means to facilitate tax evasion (through tax abatements) or to profit those corporate groups protected by low-cost licences and concessions.

Thirdly, the considerable resources made available by the PNRR (the Italian recovery and resilience plan), which provides for genuine fiscal support, should be promptly and properly put to use. In essence, “only by adopting these measures can Italy avoid getting caught into pro-cyclic fiscal policies and become part of the model for industrial decarbonisation invoked, in mid-September, by EU President Ursula von der Leyen, in her speech describing the state-of-play of the European Union. Europe, sustainable development and civic economy – these are indeed the best paths for Italy.

(photo Getty Images)

The Selection Ceremony for the Campiello Junior 2023 Finalists was held on Friday 10 November 2023, at the Pirelli HQ Auditorium.

From the over one hundred books submitted, the Selection Jury chose the following finalists for the 7-10 year category: Un bambino, una gatta e un cane  by Angelo Petrosino  (Einaudi Ragazzi), Il lungo inverno di Ugo Singer  by Elisa Ruotolo  (Bompiani), and Il grande discorso di Cocco Tartaglia  by Fabrizio Silei (Emme Edizioni).

The following were selected for the 11-14 year category: Fuori è quasi buio by Alice Keller (Risma), Storia del pirata col mal di denti e del drago senza fuoco by Andrea Molesini (HarperCollins) and La notte più bella by Daniela Palumbo (Il Battello a Vapore).

The 240 children on the Readers’ Jury will now be tasked with reading the three books written for their own age group and selecting the one they like best. Their choice will help determine the ultimate winner, whose name will be proclaimed on Friday, 22 March 2024, at a location to be announced in the coming months.

Stay up to date on all Campiello Junior events by continuing to follow us on www.fondazionepirelli.org and on our social media channels.

The prize-giving ceremony of the 2023 Corporate Heritage Awards, now in its third edition, was held this morning at the Confindustria Congress Centre in Rome The award is promoted by Leaving Footprints, an academic spinoff of the University of Naples Parthenope with the University of Sannio, specialised in consulting in the field of heritage marketing. The aim of the award is to showcase and tell the stories of the companies that have played a role in the development of Italy, to help promote and develop corporate culture.

The show that won the honour in the “Narration through Events” category was Human Enterprise: The Actor Factory, a drama training project curated by the Associazione Pier Lombardo in collaboration with the Pirelli Foundation. Six young actors who have graduated from dramatic art academies in Milan, were selected for the piece. After studying the documents in the Pirelli Historical Archive and in the company’s Research and Development laboratories at the Milano Bicocca headquarters, they illustrated the meaning of the word “enterprise” in an original theatrical performance.

The show, directed by Stefano De Luca, narrated the story of Pirelli through past, present and future. The investigation in theatrical form started from considerations concerning aspects of its corporate culture and artistic activity – vision, identity, transformation, and research – in order to examine our human ability to create artefacts and stories and ultimately investigating the relationship between man and machine. On the stage of the Teatro Franco Parenti on 28 March and 3 April 2023, the actors used their storytelling talent, and the communicative power of theatre in the form of dialogues, monologues, choral scenes and videos, to interpret the world of scientific innovations, production techniques, personal interrelationships, sustainability and economics. The ultimate aim of these intangible elements has always been to attribute meanings and values to everything around us, to the experiences we have been through, and to what still awaits us in the future.

Reading is a journey. We find our own emotions, and we explore amazing places, individuals, and stories in the pages of a novel and in the lines of a poem. And we are taken on countless adventures that enrich our minds. Schools play a pivotal role in sparking and nurturing a fondness for books from a very early age. But how does a story come to life?

The Pirelli Foundation will address this question on Thursday 23 November 2023 at 11 a.m. at the Pirelli HQ Auditorium. The event is being organised for lower secondary school children, who will discover how to find inspiration, and how to work on ideas and bring the characters from their imagination to life, by playing games based on their reading habits.
A key part of the event will be the conversation with Nicola Cinquetti and Davide Rigiani, winners of the 2023 Premio Campiello Junior. The educational role of literature in all its forms will be discussed together with Antonio Calabrò, director of the Pirelli Foundation, Alessandra Tedesco, a Radio 24 journalist, and Pino Boero, the new President of the Campiello Junior Jury.

Admission is free, subject to availability. Booking required. Please write to scuole@fondazionepirelli.org.

Continuing the effort to promote reading among the young, the Campiello Junior is now entering its third consecutive year. The prize is the outcome of a partnership between the Fondazione Il Campiello and the Pirelli Foundation.
Pirelli Foundation Educational has also introduced two educational workshops for young readers: Poesie elastiche (“Elastic Poems”) for primary schools, and Nota e annota (“Look up – Write down”) for lower secondary school students.

A book retraces the vicissitudes of Bonaldo Stringher and recalls his teachings as a means to deal with today’s complexities.

To build the future, its foundations must rest on history, as well as on the present. Valuable advice with respect to business, as well as to all other social spheres, and, further, advice that illustrates an important aspect of that well-rounded culture (related to production, but not only) that best entails the ideal knowledge required to deal with current complexities. Indeed, this is the advice found in Bonaldo Stringher. Serenità, calma e fermezza. Una storia economica d’Italia (Bonaldo Stringher. Serenity, calm and resolve. An economic tale of Italy)”, a book by Giuseppe De Lucia Lumeno published some time ago, yet still very topical (especially in a period as complex as this).

Stringher was the first Director General and the first Governor of the Bank of Italy, at the beginning of the 20th century. He was one of the undisputed protagonists in the economic, institutional and social life of Italy during the process of its unification and, above all, he was aware of the significance of European values and collaborative efforts, and indeed founded the regional cooperative banking system in Italy. A socially engaged economist and banker, a “modern man” devoted to building a social and production system that would really benefit the development of the country, Stringher is remembered for successfully dealing, with prowess and care, with several difficult economic and political transitions that affected the recently unified Italy, always driven by a single notion: “Economic science should not consider people as mere factors of production, but as the main actors in every economic function.”

De Lucia Lumeno clearly summaries each stage of his career, including details pertaining to economics and monetary economics, while also outlining the climate, difficulties, prospects and tensions of the time. Stringher lived through that era supported by his strong principles and working methods – he had faith in his ability to observe reality, had no dogmas, believed in the power of pragmatism, and knew the value of cooperation, intended as a constructive, mutually respectful dialogue bent on establishing the common good.

As mentioned, Stringher was a “modern man” and is described as such in the book – a modern man who, even today, provides us with some essential advice on how to comprehend reality so as to act for the best. The work is prefaced by a beautifully introduction by Ignazio Visco who, in his conclusions, succeeds in firmly weaving together Stringher’s life with current events: “(…) every era, though dependent on its historical heritage, has its own challenges. Our modern challenges are certainly no less critical than those experienced by the “great Governor” and, now just as then, they must be faced with determination and self-awareness, with patience and – to use the same words chosen by Stringher when he wrote his letter to the Bank’s subsidiaries during the most difficult period experienced by Italy during the war – with “exceeding serenity, calm and resolve”, as echoed in the title of this volume.”

Bonaldo Stringher. Serenità, calma e fermezza. Una storia economica d’Italia (Bonaldo Stringher. Serenity, calm and resolve)

Giuseppe De Lucia Lumeno

Guerini, 2023

A thesis discussed at the University of Genoa provides an overview of Italian companies analysed according to size

Looking at company sizes to better understand how they work and thus be able to make more informed decisions – a “mathematical” take on Luigi Einaudi’s wise motto “first learn and then decide” (though his actual words were “First learn, then discuss, and then decide”). An admonition that is still valid today, in an era when information is widespread yet not proportionally clearer or more exhaustive. Further, an admonition that, with regard to production systems and enterprises, simply means good management with all that it entails in terms of gathering information, processing it and then make the appropriate decisions.

Hence, appraising the size of a company so as to get information on the impact of its activities and determine more appropriate managing policies is a useful exercise. These are the themes around which Matteo Spinosa’s research study revolves – a thesis entitled “Dimensione delle imprese Italiane. Misure ed implicazioni” (“The extent of Italian enterprises. Sizes and implications”) discussed at the University of Genoa, Department of Economics.

In the first section, Spinosa focuses on “researching the definitions and parameters identified by various institutions and in relevant literature so as to establish a corporate size.” He then scrutinises “a few theories that suggest possible determining factors related to size, before considering the implications of different sizes, paying particular attention to growth, innovation and access to credit.” The second section sees theory applied to practice, and includes analyses focused both on Italian enterprises and comparisons with European ones.

Spinosa, in his conclusions, explains that, “The outcome of this study reveals an economic slump in the south of Italy, both in terms of number of companies and average size. Finally, comparisons with Europe highlight the small size of Italian companies, so that Italy’s occupational distribution results similar to that in Slovakia, Slovenia, Lithuania, Bulgaria and Greece, unfortunately nowhere near that of countries it should actually be akin to, such as Germany and France in particular.”

Matteo Spinosa’s paper has the merit of providing readers, within a short space and through clear language, with some basic data analysis that, as mentioned at the beginning, is helpful in better understanding the real state of play, so as to be able to act more effectively.

Dimensione delle imprese Italiane. Misure ed implicazioni (“The extent of Italian enterprises. Sizes and implications”)

Matteo Spinosa

Thesis, University of Genoa, School of Social Sciences, Department of Economics, Management Degree programme, 2023

The Italian economy is on the rise again, though only by a fraction – and this fraction is progressively shrinking, 0.7% this year and an expected 0.5% in 2024. Unfortunately, then, we’re back to that flat and stagnant state that marked the last 20 years, trailing behind all main European countries after those erratic post-Covid times, when the country actually bounced back and even started recovering (8.3% in 2021 and 3.7% in 2022). Household consumption is down, stock lying in companies’ warehouses is dwindling and export is low, loans are few and far apart and industrial production is decreasing – it all paints a dreary picture for the future.

Data released on Saturday by the Centro Studi Confindustria research centre, as part of a report entitled “L’Italia torna alla bassa crescita?” (“Is Italy back to a slow growth?”) (Il Sole24Ore, 29 October) confirms trends already highlighted by the International Monetary Fund, the EU and the main international watchdogs. That question mark in the title, however, seems to suggest two things: concern that the economic situation might yet be further affected by current strains and uncertainties, but also hope that the slow growth might get a chance to pick up, perhaps through the implementation of more appropriate economic, fiscal and industrial policies that may reverse this negative trend.

Essentially, the future of our economy, our employment market and our earnings is not yet set in stone, a decline could be avoided and better times may yet be ahead, although, of course, only if…

Let’s look at the factors we already know: a general hyperglobalisation crisis that affected the transition from the 20th century to the new millennium, carrying with it intolerable disparities and inequalities; geo-political tensions swaying a multipolar world marked by conflicts between the United States and China and the devastating strength of new and powerful international players (such as India’s rapid growth); a dramatic outburst of armed conflicts, from the Russian invasion of the Ukraine to the war in the Middle East, which undermined already fragile international trade relations and disrupted assets in the Mediterranean region, with repercussions on both the security and energy fronts.

Europe, also thanks to its historical heritage – a unique blend of economic development and widespread wealth, social democracy and justice (Patrizio Banchi in la Repubblica, 11 September) – could yet play a key role in restoring balance and optimism, further aided by its shared monetary and fiscal policies, which proved a success in both political and cultural terms, but it’s currently struggling to voice an authoritative and unanimous approach.

To such an already negative climate, we can further add the inflation rate and the cost of money, a demographic imbalance and the impact of pressures generated by the technological and environmental transitions, whose social cost we are currently paying while we’re learning to handle their evolution so as to reap their benefits – sadly, however, the road is long and paved with misgivings.

We are basically living in a profoundly uncertain era and, day after day, unfolding events give rise to darkest thoughts – these are circumstances ill-suited to our growth and development needs for sure.

Moreover, Italy has to pay an additional price, which aggravates the situation: being an export country, the fall in international trade has brought its economy to a halt. The recession in Germany (Italy’s main industrial and commercial partner) is having an impact on several manufacturing sectors, starting with the automotive and mechatronics ones (“Germany’s hardships bear down on our GDP”, asserts Mario Deaglio, La Stampa, 13 September). Italy’s rising public debt doesn’t allow for the implementation of fiscal and public expenditure levers that could stimulate investment and recovery, as it’s happening in the United States and Germany. Up to now, political and public administration incompetence has prevented the creation of opportunities calling for the significant financial resources (237 billion in non-repayable loans and funds) made available by the PNRR, the Italian recovery and resilience plan (an intriguing description of current circumstances can be found in PNRR. La grande abbuffata – PNRR. A bingeing spree, a book by Tito Boeri and Roberto Perotti recently published by Feltrinelli).

So, is Italy’s bleak fate really and inexorably sealed? “Is it all wrong, should I start over?” as Gino Bartali used to joke? Not at all – indeed, the great champion who used to grumble and complain and yet triumphed in the Tour de France and the Giro d’Italia had to backpedal on his own words.

And furthermore, one of the sharpest commentators of the Italian economy and society, Giuseppe De Rita, president of Censis, offers a controversial viewpoint: “When talking about the real economy, nobody ever mentions those parts of the country that are malfunctioning – key parts of the economic systems that are left unattended” (Corriere della Sera, 25 October). Let’s go back to the 1970s. After the Yom Kippur War, when Israel defeated an extremely powerful alliance of Arab countries, energy prices went berserk, the Western economies underwent a terribly harsh period of reconstruction, inflation in Italy surpassed the double figures, public finances were in dire straits and, moreover, Italy was struggling through the “Years of lead”, a period of social unrest and terrorism. No one noticed it at the time, yet the Italian industry, little by little, was stealthily and “informally” restructuring itself over the territories, creating new competitive assets. We only realised this in the early 1980s, when an extraordinary amount of financial liquidity became available, looking for outlets and good investments, and Italy found itself wealthy and dynamic, thriving with innovative industrial districts as well as newly risen and brazen industrial, financial, fashion and advertisement moguls and tycoons.

And today? De Rita invites us to take a proper look within the hidden corners of Italian society and, despite figures pointing to a crisis, nonetheless give a voice and clear the way for those who are producing, innovating, growing and manufacturing: “Italian enterprises that are still in business are actually noticing some signs of life – feeble, yet there nonetheless: Italy’s driving engine – Milan and the Lombardy region – is still running well; the north-east is overcoming its economic dependency from Germany; the Emilia Romagna region and part of the Marche region abound with excellent assets; tourism in Tuscany, Umbria, Lazio (Rome), Apulia and Sicily has been booming.”

Basically, De Rita insists that “paying more attention to these more vigorous parts of the economy would boost morale, and as we’re about to face what is likely going to be a difficult winter, this is more important than speculations about public finances.”

Those familiar with the extremely complex – at times controversial and even contradictory – nature of Italian manufacturing can only agree with De Rita’s assessment. In fact, they recognise the successful reorganisation efforts of districts and production supply chains; the large and medium producers of green steel located between Cremona and Brescia; the enterprises who have embraced environmental and social sustainability as powerful and international competitive assets; the initiatives that are reviving the industrial north-west regions through fertile collaborations with entrepreneurial associations in Milan, Turin and Genoa; the industries that are revamping products and processes, making acquisitions and building partnerships abroad – such dynamism may not yet be fuelling the whole country or its economy, but can keep the crisis at bay and provide the foundations for the recovery. As Carlo Bonomi, president of entrepreneurial association Confindustria, concisely comments, “This is a complex scenery, but the industry remains strong. Italy can make it” (Il Sole24Ore, 5 October).

We just need some suitable Italian and European policies to strengthen such resilient social capital built on entrepreneurship and a desire for change – we just need a new and better culture rooted in responsibility.

(photo Getty Images)