Productivity profile of Italy

Ministry of Economy and Finance (MEF)

Bank of Italy

Italian National Institute of Statistics (ISTAT)

Bank of Italy: Ownership, governance, management and firm performance: evidence from Italian firms (2022), Firm characteristics and potential output: a growth accounting approach (2021), Frontier and superstar firms in Italy (2019), Allocative Efficiency and Finance (2019), Credit Supply and Productivity Growth (2018), Productivity Growth in Italy: A Tale of Slow-Motion Change (2018), Productivity and Reallocation: Evidence from the Universe of Italian Firms (2017);

Academic articles: Productivity and Business Dynamics through the lens of COVID-19: the shock, risks and opportunities (2021), Does Weak Contract Enforcement Affect Firm Size? Evidence from the Neighbour's Court (2017);

OECD:  OECD Economic Surveys: Italy (multiple), Economic Policy Reforms 2023: Going for Growth – Italy, Closing the Italian digital gap: The role of skills, intangibles and policies (2022), Productivity and human capital: The Italian case (2021), Blockchain for SMEs and entrepreneurs in Italy (2020), The Effect of Public Sector Efficiency on Firm-Level Productivity Growth: The Italian Case (2019).

Foster a competitive and dynamic business environment by spurring competition in sectors:

• Implement the competition reform legislated in 2022, including by submitting concessions to public tenders at expiry.
• Strengthen competition in professional services, including by reducing the scope of “fair compensation” rules.
• Improve the effectiveness of public administration, including with regard to implementation, management, and prioritisation of public investments under the National Recovery and Resilience Programme.
• Open local public services to competition.
• Continue strengthening the links between civil servants’ and judges’ performance, career progression and pay, and ensure that performance evaluation is thoroughly implemented.

Introduce a national productivity board to identify and communicate the costs and benefits of reforms, and build a national consensus.

Enhance the skill set of the labour force and consider relieving its tax burden:

• Strengthen apprenticeships, technical tertiary education and training. Expand technical tertiary schools (ITS Academy) and improve quality control for training providers by introducing a national-level certification scheme.
• Shift taxes from labour to property and inheritance, while ensuring that revenue is maintained or increases.