Research and competitiveness: the challenge Italia cannot afford to lose

(Il Sole 24 Ore Radiocor) - Whilst it is true that an increasing number of companies view investment in research and innovation as a strategic lever for building the future rather than a cost, this may not be enough to meet the challenge of competitiveness. To drive innovation, we need to invest by increasingly involving private capital – which will become central once the National Recovery and Resilience Plan (PNRR) comes to an end – as well as directing research towards objectives that can be transformed into industrial processes, thereby overcoming the Italian paradox of many publications but few patents. The figures now make this abundantly clear. Among Italian SMEs, 60.3 per cent of small businesses undertook innovation activities between 2020 and 2022, a figure higher than the EU average (47.2 per cent) and that of Germany and France. However, when looking at R&D expenditure in the strict sense, the gap in scale remains wide: in 2023, expenditure by large enterprises grew by 7.3 per cent, accounting for 73.1 per cent of R&D investment by Italian enterprises alone, whilst that of small enterprises fell by 2.3 per cent, according to Istat data.

“Even today, unfortunately, the public, the media and policy-makers sometimes overlook the strategic importance of research and the many ‘Made in Italy’ technologies that have changed the world,” says Diana Bracco, Chair and CEO of the Bracco Group and Chair of Confindustria’s MAI Foundation. “Everyone, however, must understand that innovation is an indispensable tool for the growth that Italy needs. But research and innovation require adequate financial resources, reliable timelines and efficient management. In other words, a favourable environment must be created and clarity of objectives must be ensured. All too often I hear companies accused of not carrying out research. This claim is contradicted by the facts,” adds Diana Bracco.

The figures do, however, confirm an overall increase in commitment: if we look at total national expenditure on R&D, which also includes the public sector and universities, the private sector – comprising businesses and non-profit organisations – accounted for 60.1 per cent in 2023, with corporate investment up by 5.4 per cent compared with the previous year, again according to Istat data. Furthermore, Italian companies – leading the way among EU countries – have participated in the 11 IPCEI (Important Projects of European Interest) on strategic topics such as semiconductors, batteries, artificial intelligence, cloud computing and hydrogen. There are also some positive signs regarding public-private collaboration, for which Mission 4, Component 2 of the PNRR has set the course by focusing on the creation of national centres, extended partnerships, regional ecosystems and innovative PhD programmes co-funded by businesses. This network aims to facilitate structured collaboration between businesses, universities and research bodies, promoting the exploitation of the results achieved and the transfer of knowledge to the manufacturing sector.

According to the Draghi Report on European competitiveness, over the last twenty years Europe’s share of global investment in R&D has fallen by a quarter, whilst the gap with the US and China continues to widen. The Report clearly sets out the direction that must be taken as a matter of urgency: increasing EU funding for R&D, focusing it on joint initiatives, and building a Research and Innovation Union capable of coordinating policies across Member States. It is also emphasised that it is essential not to squander the experience gained through the National Recovery and Resilience Plan (PNRR) in the field of research and innovation – not least the mobilisation of the public – but to capitalise on it, thereby facilitating the development of new projects to make the best use of European funding.

“The new Multiannual Financial Framework for 2028–2034, with 175 billion for Horizon Europe and 410 billion for the European Competitiveness Fund, is an opportunity not to be missed,” says Diana Bracco. “Research funding must be safeguarded during the negotiations, and Italia must play a leading role by adopting a strong, shared strategy that is developed through serious dialogue between the government, the business sector and the academic world. Only in this way can we support our country’s growth and competitiveness.”