Summary

Italy encourages small and medium-sized enterprises (SMEs) to adopt advanced technology and carry out technological innovation. The “Law on Supporting Innovation and Development of Small and Medium-sized Enterprises” and the “Law on Innovation and Entrepreneurship" are passed to stimulate innovation and entrepreneurship.  In 2016, Italy launched the national “Industria 4.0” plan to digitalize new industries and enhance their competitiveness. In line with the plan, government measures are formulated to stimulate and promote the development of venture capital, innovation and entrepreneurship in the 2017 Budget Law. Decree-Law No.3 of 24 January 2015 reformed the company registration process in terms of reducing registration fees, improving registration efficiency and online registration. Italy's Ministry of Economic Development, Ministry of International Trade and Ministry of Economy and Finance are mainly responsible for SMEs, innovation and entrepreneurship.

The Italian government supported the internationalization of innovative start-ups and SMEs through financial subsidies to enhance their international competitiveness and influence. “Trademarks + 3” was open for application in March 2018. The “Industria 4.0” plan provides tax relief and preferential policies to innovative start-ups and SMEs. Since 2017, for example, the Italian government has reduced 30% of personal income tax or enterprise income tax for capital investors of innovative enterprises, start-ups, and SMEs. It has also implemented the super- and hyper-depreciation taxation system, and added the nominal purchase cost in calculating depreciation of new machines and equipment. In addition, the taxable amount of enterprises has been reduced and R&D credits has been given to enterprises The Innovative Startups Policy/Innovative SMEs Policy exempts innovative startups and SMEs from stamp duty, business registration fees and annual chamber fees, as well as a certain amount of value-added tax. The policy also provides discounts of service fees for expanding international market, and expands financing channels for innovative startups and SMEs by allowing online equity crowdfunding and setting up SME Guarantee Fund.

The Italian government has been attaching great importance to technological R&D and innovation of SMEs. The 2015 Stability Law implements tax credits for enterprises’ R&D incremental investment and reduces regional taxes. The Patent Box 2015 strengthens the protection on intellectual property rights. In order to support the knowledge innovation and achievement transformation of SMEs, the government has set up a Technology Innovation Fund (FIT) and a Research and Development Fund (FAR) to encourage national scientific research institutions and enterprises for scientific R&D. To promote the development of e-commerce of SMEs, the Italian government began to implement the voucher system for SMEs in 2014. In 2017, the government announced the continuation of the Italia Startup Visa program and the Italia Startup Hub program.

The Italian government put forward various policies and actions to create a culture of youth entrepreneurship. For example, the Italian government designed and implemented the National Youth Plans, set up the Department for Youth and the National Youth Agency, and cooperated with non-governmental agencies such as Confindustria. The European Social Fund, the Youth Employment Initiative, and the Youth Guarantee also increased efforts to support youth entrepreneurship in Italy. The support for youth entrepreneurship is mainly tilted to innovative high-tech projects. Italian universities launched entrepreneurship-related courses to promote the development of entrepreneurship among students and scientific researchers, such as Bologna University’s technical entrepreneurship education course and Padova University’s newly established postgraduate training program in entrepreneurship and innovation. There is a national-level development path in technical and vocational education.