The Digital Future of Italy

Written by: Peter Harrison

Category: General

Published: May 6, 2022

How is the digital future of Italy shaping up? This article explores Tech-education and -transformation initiatives in Italy. We also look at GDP growth and Industry 4.0 in the country. You’ll be surprised to learn that Italy ranks near the bottom of the EU for advanced internet skills. This is concerning given that Italy has one of the lowest rates of graduates with IT and communication degrees. What can we do to help the digital future of Italy? Check out https://www.agi.it/blog-italia/digitale/perch_il_digitale_la_chiave_per_aprire_litalia_al_futuro_lo_dicono_i_numeri-1620141/news/2017-03-24/ for more info.

Tech-education initiatives in Italy

The Italian education system is lagging behind other countries when it comes to digitising their students and professors. This is concerning as digital skills are an important factor in facing the reality of today. According to the OECD, Italy is one of the countries with the least amount of digital skills, and the report calls for strengthening formal lifelong learning. Unfortunately, the Italian system has never implemented an open education policy or lifelong learning system.

As a result, Italian executives view digitalisation as a cause for concern, despite the fact that the country is ahead of its peers in many areas. However, they feel that the digital revolution will bring about more social problems than it will solve. It is also worth noting that they believe that new technologies will create more jobs than they eliminate. But even though this sentiment is not universal, the recent political and economic developments in Italy can make these concerns more real.

Tech-transformation initiatives in Italy

While many countries have embraced technological advancements, Italy is one of the last to make the full transition. For example, until the late 1970s, Italians relied on radio waves to broadcast television, and only gradually switched to coaxial cable. Tech-transformation initiatives in Italy are still in their early stages, with traditional business practices firmly entrenched. This makes it difficult to bring about sweeping change in Italy without significant disruption.

A new regulatory framework, called the Repubblica Digitale, has been established, defining eligibility criteria for startups. It aims to create a more entrepreneurial ecosystem, while at the same time creating new jobs. It has sparked widespread interest among entrepreneurs, with over 10,000 startups being registered under the scheme as of July 2018. Tech-transformation initiatives in Italy are designed to promote digital inclusion and improve digital skills, and could help the country emerge from its pandemic crisis with a stronger economy.

Industry 4.0 in Italy

The Italian Government has created the National Industry 4.0 Plan to encourage investment in connected technologies, which will allow for complex analysis and real-time manufacturing systems adaptation. The new budget law increases incentives for implementing the Industry 4.0 model, including hyper-depreciation of tangible operating assets. It also allows for reduced tax on performance bonuses, with a cap of 10%. While this measure is relatively new, the benefits it brings may be greater than its costs.

According to the survey, the Italian market for Industry 4.0 solutions was estimated at 2.3-2.4 billion euros in 2017. Industrial IoT, Analytics, and Cloud Manufacturing account for over 90% of the total market. Companies have improved their knowledge about the solutions and have adopted an average of 3.7 applications, with IoT and Analytics topping the list. In addition, training is an important theme for adoption. The aim of the study is to provide a benchmark for the adoption of Industry 4.0 technologies in Italy.

GDP growth in Italy

After a difficult period dominated by the COVID epidemic, Italy’s economy is slowly recovering, helped by a strong vaccination campaign and generous fiscal support. However, many risks remain for the economy, including the evolution of the virus and the path of global interest rates. As a result, the new Italian government should focus on three action areas to revive the country’s productivity: green growth, e-government, and human capital. The new government should also introduce major spending measures such as a flat tax and universal basic income, but these should be seen in the context of a digital economy.

Despite the ongoing economic uncertainty, the country’s ability to grow remains strong. The nation’s Pil (gross domestic product) is expected to exceed 6% this year, a record high. But the recovery will slow down to +4% the following year. To be aware of the evolution of this situation, it is essential to monitor risks and opportunities. Intesa Sanpaolo’s Outlook 2022 outlines the most significant trends facing Italy’s economy in the digital age.

Digital skills deficit in Italy

According to the European Commission’s 2020 Digital Skills Index, the country is suffering from a digital skills deficit. Among the EU’s 28 member states, Italy ranks last with 42% of its citizens having basic, intermediate, or low levels of digital skills. In contrast, the European average is 58% and Germans have a 70% score. The strategy proposes the development of four key competences for the future: schooling, higher education, active workforce, and specialist ICT skills. The aim is to increase the proportion of citizens and workers who possess the necessary skills.

The country lags behind other EU countries when it comes to adopting digital solutions. In fact, according to a recent Deloitte report, the country is dead last in internet usage, while it is dead last in digital skills. The COVID-19 pandemic has brought the digital skills deficit to the fore. Nevertheless, Italy is on the way to achieving digital maturity. In addition to the lack of skills, the country also lacks technological infrastructure.

COVID-19 pandemic

Paola Pisano, the Minister of Technological Innovation, has discussed how digital innovations can help the country recover from the devastating Covid-19 virus. The country recently went on a nationwide lockdown as the virus spread rapidly across the country. During the lockdown, businesses, schools, and factories were closed, and the country’s population of 60 million remained confined to their homes. Following the outbreak, the Italian government launched a campaign known as “digital solidarity,” which encouraged businesses to provide free digital services to their citizens, including cloud-conferencing platforms, online magazine subscriptions, and online courses in digital skills.

While the Italian government declared the COVID-19 pandemic a public health emergency on 31 January 2020, the data collection did not begin until patient one was diagnosed. While the government allocated 5 billion Euros to the cause, this amount of money was not enough to set up an effective surveillance system before the disease spreads across the country. As a result, less-stringent policy interventions were not enough to halt the daily increase in mortality and ICU saturation by early March.