Tuscany

Region

Introduction

Tuscany is a region in Central Italy. It covers an area of 22,985 km2 (8,879.19 sq. mi) and a population of about 3.7 million inhabitants (Eurostat, 2020). The regional capital is Florence. The regional innovation system is well-established and characterised by a high concentration of research institutes and universities, S&T parks and poles, and important clusters of high-tech enterprises. The main weakness is the low level of R&D investments due to the prevalence of small firms and traditional specialisations.

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Economy

Socio-economic profile:

GDP per capita PPS in Tuscany was equal to €32,000 in 2018, increasing since 2009 by 1.2 %, higher than the Italian GDP PPS €29,700 and European one €31,000 (Eurostat, 2020).
The nominal regional GDP in 2018 was equal to €117.638,34m (Eurostat, 2020), it is 7% of national GDP.
During 2016-2018 period, a positive trend started (+2.2% for 2016 and +2.6 % for 2018). Compared to the national average (+2.4% for 2016 and 2017, +1.7% for 2018), Tuscany showed good signs of recovery (Eurostat, 2020).
In 2017, there were approximately 327, 533 business firms active in Tuscany (Eurostat, 2020). More than 75% of regional firms operate in services of which 34% in services trade, transport and hotel industry. The companies in the construction industry amount to 11%, while industrial firms amount to 12%. The main specialisations of Tuscany industrial clusters include textiles; leather; shoes and clothing; agro-food; stone and marble; chemistry and oil; and mechanics. Moreover, new (non-traditional) specialisations are emerging, such as the software industry in the area of Pisa. The manufacturing sector, which first felt the effects of the crisis, reported a fall in sales and production levels. The overall performance was worse for smaller firms (especially crafts) and those in the fashion industry.
The distribution of employment by sector displays that Industry represents 29.8% and the construction sector 9.2% of the total workforce.
The unemployment rate has decreased from 9.2% in 2015 to 6.8% in 2019. This demonstrates also by the employment rate, which is passed from 64.8% on 2015 to 66.9% on 2019 (+3.2%) (Eurostat, 2020). The employment rate is lower than the European one (69.2%) but higher than the Italian rate (59%) (Eurostat, 2020).

Research, Development & Innovation

RTDI profile:

Regarding the RTDI inputs, Tuscany's levels of R&D expenditure are close to the national average, but considerably below the EU average. This gap is more evident if compared to the Northern European countries, which performance is about 3 times higher than in Tuscany.
In 2017 the total R&D expenditure (€1,666.21m) was 1.45% of the GDP , lower than the European average 2.08% but higher than the Italian average 1.37% (Eurostat, 2020).
The regional performance is negatively affected by weak private R&D investment, which is lower than in the more advanced Italian regions. In 2017 the business R&D expenditure on GDP was 0.86% and the public R&D expenditure as percentage of GDP was 0.57% (Eurostat, 2020). The largest share of the latter expenditure is accounted for by local universities.
The lack of private RTDI investment is a consequence of the small size of local businesses and of their specialisation in traditional sectors. Large enterprises and multinationals investments are relatively scarce and unable to produce sizeable positive impacts.
In relation to R&D output, Tuscany is still lagging behind the most innovative North-Italian and European regions. For instance, in patenting activity; the EPO patent applications amounted to 65.2 per million people in 2012 while in the Northern-east Italy the average is about 145. This highlights that the system is mainly oriented towards academic research. The distribution of research employees in the institutional sector also confirms the role of universities as the most important players in formal R&D activities.
This is also a direct consequence of the fact that Tuscany, similar to the other regions in Central Italy, is characterised by the prevalence of traditional SMEs, organised in clusters, whose innovation is mostly informal and linked to the continuous interaction between suppliers and producers.
In 2019, the high-tech sector employed 55,200 persons that corresponds to the 3.5% of the total employed population. It is in line with the Italian average (3.7%) but below the European one (4.2%). The growth of the population employed in the high-tech sector showed a positive trend since 2015 (+0.7%) (Eurostat, 2020).
Population with tertiary education (age in between 30-34) showed also a slightly decreasing over time: from 29.8% in 2015 to 29.1% in 2019 (Eurostat, 2020) above the Italian average (27.6% in 2019) (Eurostat, 2020).
Finally, the broadband diffusion among households is very good: 86% in 2019 (Eurostat, 2020).

Regional Innovation Scoreboard results

Latest Regional Innovation Scoreboard results:

According to the to the Regional Innovation Scoreboard 2019, Toscana is ranked as a moderate innovator. Moderate innovators are those regions with a relative performance between 50% and 90% of the EU average.
The innovation performance changed significantly in the recent years, showing one of the strongest increments among the Italian regions.
In fact, the Regional Innovation Index of Tuscany increased by 11.1 points from 2011 to 2019.
The main strengths in the field of research, as this is the case with majority of other Italian regions, relate to: the International Scientific co-publications (23% above the national average; 13% above the one for Europe) and public-private co-publications (26% above the national average; almost in line with the one for Europe).
The main weaknesses relate to business R&D (8% below the Italian average; 29% below the one for Europe) and employment of medium-high/high tech manufacturing and knowledge intensive services as percentage of total workforce (19% below the Italian average; 18% below the one for Europe).

Governance

Governance profile:

The constitutional reform that has been endorsed in 2001 gave Italian regions full autonomy in RTDI policy, as well as in other policy areas. This reform and the Lisbon Strategy introduction benefited RTDI, which gained a central role in regional policy. The main operational instruments to ensure vertical co-ordination between regional and national authorities are Framework Programme Agreements signed between the Regional Administration, the Ministry of Economy and Finance and the Ministry of University and Research to identify regional priorities. The Conference of Regions and Autonomous Provinces is instead the main interregional coordination mechanism. It aims to improve dialogue between local authorities and between these and the central government (within the State-Regions Conference).
The DG “Culture and Research” together with the DG “Productive activities” are the main institutional bodies responsible for designing and implementing the regional policy in the RTDI and higher education fields. In particular, they liaise with regional universities and research centres and promotes and coordinates research activities in several sectors. The Health DG is the institution is responsible for innovation policies, The office “Infrastructure for Production Activities and Technological Transfer” defines and manages the regional policy for the industrial development, internationalisation, innovation and technology transfer to business sector.

The coordination is pursued through the proposal of Multiannual Guidelines by the different Departments and the design of a single Regional Economic Development Plan (PRSE).
A Regional Research Network was created on the basis of the Regional Law 20/2009 to strengthen the involvement of the main local stakeholders in the design of RTDI initiatives. The Regional Conference for Research and Innovation has also been created for this purpose. Members of the Network are the Regional Departments, the local authorities, the regional universities and public / private research centres, the Science and Technology Parks as well as the main innovative firms. Finally, it is worth mentioning the advisory role of the Tuscany Regional Institute for Economic Planning (IRPET) which carries out several analyses on regional economic trends and preparatory studies for drafting the regional plans.
The Smart Specialisation Strategy (S3) of Tuscany is the main innovation strategy and its governance, approved by the Decision of 24 May 2016, is focused on the following bodies:

S3 coordination unit: has the task of monitoring and updating S3, evaluating the progress of implementation and activating moments of verification and comparison with the actors of the territory (socio-economic and institutional partnership, research and training system, etc). It is made up of the Managing Authorities of the regional operational programs (POR) of the ESI funds and of the Operational Program of the Development and Cohesion Fund (FSC) and of the representatives of the Tuscany Region directorates involved.
Permanent Observatory S3: made up of the members of the Coordinating Unit and the representatives of the technological transfer and innovation system, it represents the place of comparison and participation of the world of technology transfer, embodied by the technological Districts, for all the criticalities or opportunities for improvement in the implementation of S3.

Policy

Policy trends profile:

The regional RTDI strategy identifies three macro-areas of intervention: support to regional high-tech sectors and key technology areas, including the Technological Districts located in Tuscany (approximately half of the available budget is dedicated to this priority); support to “traditional” sectors, such as construction and business services (about 10%); support to health-care research. In this framework, over 70% of total budget aims to promote specific actions involving local enterprises while the rest is used to finance basic research projects. The latter only concern three scientific areas: Health, Energy and Environment, and Socio-economic and Human Sciences.
Finally, the RTDI initiatives are strictly related to the key areas identified by the Integrated Development Plans (PIS) within the Regional Development Programme. This is a relevant aspect that allows the sectoral and geographical concentration of the planned initiatives and resources, as well as the integration of RTDI policy with the other actions envisaged in the various regional sectoral plans.
The new programming period 2014-2020 of the Regional Operative Programme (ROP) ERDF showed that for the Axis 1 “Strengthen research, technological development and innovation” the resources allocated represent about 34%. The main aim of the ROP is to increase business innovation through support for start-ups and spin-offs, including support to research infrastructures, which are considered as crucial for the regional eco-system.
The main new innovation policy document is the Smart Specialisation Strategy (S3) that has the two strategic goals:

Strengthening the competitive position of Tuscan companies in the international markets: Facilitate organizational and industrial dynamics capable of generating positive economic flows on global markets, primarily in terms of trade surplus (export and import abatement).
Reorganize internal chains: to facilitate the dynamics of innovation, including organizational, repositioning of internal chains, in order to be effective in the placement of Tuscan products on foreign markets and at the same time to respond to the demand for goods and services intended for domestic markets.

The three specialisation areas identified by the S3 are the following:

Information Communication Technologies (ICT) – Photonics.
Intelligent Factory.
Chemistry and Nanotechnologies.

Five main objectives have been launched that will drive EU investments in 2021-2027. The regional development investments are focused on the modernisation of the Cohesion Fund resources that will be allocated to the following priorities:

a Smarter Europe;
a Greener, carbon free Europe, implementing the Paris Agreement and investing in energy transition, renewables and the fight against climate change;
a more Connected Europe, with strategic transport and digital networks;
a more Social Europe, delivering on the European Pillar of Social Rights and supporting quality employment, education, skills, social inclusion and equal access to healthcare;
a Europe closer to citizens, by supporting locally-led development strategies and sustainable urban development across the EU.

Activities linked with Advanced Manufacturing

Activities linked with Advanced Manufacturing:

The main technology areas in which the region has a specific competitive advantage in the advanced manufacturing field are cyber security, big data and analytics, mechanical automation, robotics, artificial intelligence, application technologies to 5g.
The most relevant technologies for these fields are those linked to sustainable manufacturing and to the development of new systems for an “intelligent factory”. That is a factory characterised by automation, greater efficiency, lower environmental impact, and which produces eco-sustainable products, uses and develops new materials. Other essential features of an intelligent factory include eco-design, integrated design, design for disassembly, design for recycling, de-manufacturing, and human centred manufacturing.
Advanced manufacturing plays a key role in the new innovation strategy. Most of the strategic areas identified by the Smart Specialisation Strategy are priorities for advanced manufacturing, involving in particular advanced systems, ICT and materials for automotive, aerospace, maritime sector, Made in Italy, sustainable building sector, energy production and urban sustainable mobility. A considerable share of the innovation policy initiatives which will be launched in the 2014-2020 period will promote advanced manufacturing.
Regional priorities for advanced manufacturing are to a certain extent embedded in human capital development policy (e.g. apprenticeships and the involvement of young researchers in advanced knowledge transfer activities in production processes) as well as in the initiatives for improving energy efficiency and usage of renewable energy sources in production processes. Intervention in these policy areas has a significant impact on manufacturing.
In March 2017, the Tuscany region has established the “Regional platform Industry 4.0,” which is an integrated public system oriented towards businesses support on transfer and technological innovation, technical and university training and work.
The ultimate goal of the Platform is to support the competitiveness of Tuscany companies by providing them with all the tools needed to guide industry orientation and orientation towards Industry 4.0
Among the specific tasks that of the Platform are the following:

the coordination activities between the actions of the individual components of the platform, aimed at promoting the technological, organizational and socio-economic content of Industry 4.0;
the proposal for technical content for actions and interventions aimed at the introduction of digital technologies in enterprises, the business-to-customer/supply chain relationship and regionally-specialized production chains;
the analysis of the problems of specialized skills, technical training and higher education; assessment of impacts on job organization and promotion of technical comparison with economic and social parties on Industry 4.0 issues.

The Platform, from September 2017, has officially became part of the DIH Catalogue, Digital Innovation Hub, of the European Commission.

Complete Regional Profile

Economy

Research, Development & Innovation

Latest Regional Innovation Scoreboard results

Governance

S3 coordination unit: has the task of monitoring and updating S3, evaluating the progress of implementation and activating moments of verification and comparison with the actors of the territory (socio-economic and institutional partnership, research and training system, etc). It is made up of the Managing Authorities of the regional operational programs (POR) of the ESI funds and of the Operational Program of the Development and Cohesion Fund (FSC) and of the representatives of the Tuscany Region directorates involved.
Permanent Observatory S3: made up of the members of the Coordinating Unit and the representatives of the technological transfer and innovation system, it represents the place of comparison and participation of the world of technology transfer, embodied by the technological Districts, for all the criticalities or opportunities for improvement in the implementation of S3.

Policy

Strengthening the competitive position of Tuscan companies in the international markets: Facilitate organizational and industrial dynamics capable of generating positive economic flows on global markets, primarily in terms of trade surplus (export and import abatement).
Reorganize internal chains: to facilitate the dynamics of innovation, including organizational, repositioning of internal chains, in order to be effective in the placement of Tuscan products on foreign markets and at the same time to respond to the demand for goods and services intended for domestic markets.

The three specialisation areas identified by the S3 are the following:

Information Communication Technologies (ICT) – Photonics.
Intelligent Factory.
Chemistry and Nanotechnologies.

a Smarter Europe;
a Greener, carbon free Europe, implementing the Paris Agreement and investing in energy transition, renewables and the fight against climate change;
a more Connected Europe, with strategic transport and digital networks;
a more Social Europe, delivering on the European Pillar of Social Rights and supporting quality employment, education, skills, social inclusion and equal access to healthcare;
a Europe closer to citizens, by supporting locally-led development strategies and sustainable urban development across the EU.

Activities linked with Advanced Manufacturing

the coordination activities between the actions of the individual components of the platform, aimed at promoting the technological, organizational and socio-economic content of Industry 4.0;
the proposal for technical content for actions and interventions aimed at the introduction of digital technologies in enterprises, the business-to-customer/supply chain relationship and regionally-specialized production chains;
the analysis of the problems of specialized skills, technical training and higher education; assessment of impacts on job organization and promotion of technical comparison with economic and social parties on Industry 4.0 issues.

The Platform, from September 2017, has officially became part of the DIH Catalogue, Digital Innovation Hub, of the European Commission.

Repository

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Policy Documents

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European Commission - Internal Market, Industry, Entrepreneurship and SMEs

Tuscany

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Economy

Research, Development & Innovation

Latest Regional Innovation Scoreboard results

Governance

Policy

Activities linked with Advanced Manufacturing

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