The Second Wave of Mechatronics: Italy’s Challenge in the Age of Artificial Intelligence

In 1986, Teece demonstrated that the value of an innovation is not necessarily captured by those who develop it, but by those who control the complementary assets needed to turn it into successful products and services. In the case of Physical AI, these assets include industrial expertise, control systems, software, operational data, integration capabilities and access to customers. For Italia, which already possesses most of these, this means consolidating existing complementary assets and fostering their evolution into intelligent systems. To achieve industrial sovereignty and govern entire technological-operational platforms, it is necessary to support companies capable of dominating strategic segments of supply chains, moving from the role of supplier to that of leader.

The current model of specialised, flexible and locally-based businesses needs to be called into question, as the limitation is no longer merely a question of size or capacity for innovation, but rather the position one occupies within the value chain. We can remain excellent manufacturers whilst remaining economically subordinate to those who control the architecture and determine the direction. Or we can recognise that the AI boom is paving the way for intelligent mechatronics. We can invest in new skills and ‘buy & build’ strategies to build larger, integrated platforms capable of controlling critical parts of the supply chain, thereby accelerating growth and enhancing our competitive strength.

Two examples demonstrate that this path is possible. Avio has moved from supplying components and propulsion systems to managing the Vega C launch service. Mech-I-Tronic has created a €165 million group by bringing together companies specialising in machinery and industrial automation, thereby integrating complementary skills and technologies.

Looking ahead to a timeframe that Strategy& estimates will span three to five years – during which the first generation of leaders will establish themselves – the question is not so much whether the AI boom will bring new orders to Italian manufacturing, but rather whether we will be able to reposition ourselves more effectively within global ecosystems. The first era of mechatronics made us experts in building complex machines and systems. The second will give us a leading role in managing the smart infrastructure on which the new economy will be built.

The new revolution will not be won simply by improving production, but by controlling the technologies on which the functioning of industry depends

(*) Executives and Board Members