Challenges to Technology Innovation in Italy

Italy is an economy with few incentives for technology innovation, due to the social, cultural, and economic consequences of a society that is based on privilege rather than merit. The lag in innovation in Italy vis-à-vis the other main industrial countries is one of the effects of the fragmentation of the production system into many small firms that have trouble bearing the high cost of R&D and taking the related risks. Most people have little incentive to create innovative companies, as they perceive that those with privileges have an unfair business advantage and consequently many entrepreneurs are wary to invest in innovation. The mainstay of this paper is to list and understand the challenges that affect technology innovation in Italy. The paper suggests the necessary involvement of all members of the society in the process of design public policies and socio-technical infrastructures in order to overcome this existing innovation gap. In particular, Italian entrepreneurs should work together to transform the network of pernicious institutions that perpetuate the lack of a meritocracy, as well as the corruption that hinders the development of Italy.