European Productivity, Innovation and Competitiveness: The Case of Italy
IMF Working Papers, May 9, 2014
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- European Productivity, Innovation and Competitiveness: The Case of Italy
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Bibliographic details
- Authors: Andrew J Tiffin
- Published: May 9, 2014
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781484379868.001
Executive summary and core findings
- Price-based competitiveness measures are not always an accurate predictor of trade outcomes for Italy.
- The paper offers a comprehensive assessment of Italian competitiveness, emphasizing the role of innovation and the evolution of Italy’s export market share.
- Italy maintains a high-quality export mix.
- The adaptability of small-scale specialized firms remains a source of strength.
- Small firm size is becoming less of an asset.
- Even the most innovative sectors are weighed down by structural barriers that have depressed productivity more broadly.
- Italy’s future competitiveness will depend on full implementation of a comprehensive structural-reform agenda.
Analysis themes and evidence
- Competitiveness measurement
- Price-based indicators provide an incomplete picture of trade outcomes in Italy.
- A broader approach incorporating innovation and export mix is necessary to assess underlying competitiveness.
- Export mix and market share
- Italy’s export mix is characterized as high-quality.
- Export market-share evolution is a key lens for assessing competitiveness beyond prices.
- Firm structure and innovation
- Small-scale specialized firms contribute to adaptability and competitiveness.
- The relative advantage of small firm size has diminished.
- Innovative sectors continue to face pervasive structural constraints affecting productivity.
Policy implications and recommendations
- Implement a comprehensive structural-reform agenda in full to restore and enhance competitiveness.
- Focus reforms on removing structural barriers that suppress productivity across sectors, including the most innovative ones.
- Support measures that preserve and scale the adaptability strengths of small specialized firms while addressing constraints associated with small size.
Publication and metadata
- Author: Andrew J Tiffin
- Publication date: May 9, 2014
- Series: Working Paper No. 2014/079
- Issue: 079
- Volume: 2014
- Pages: 23
- DOI: https://doi.org/10.5089/9781484379868.001
- Stock No: WPIEA2014079
- ISBN: 9781484379868
- ISSN: 1018-5941
- Subjects: Competition, Export performance, Exports, Financial markets, International trade
- Keywords: CMSA, Competition, competitiveness, competitiveness indicator, destination mix, export, export mix, Export performance, export prowess, export share, exports, Global, Italy, market share, price, productivity challenge, shift share analysis, tradable sector, underlying competitiveness, WP
IMF Working Papers — "European Productivity, Innovation and Competitiveness: The Case of Italy" (Andrew J Tiffin, May 9, 2014).