The difficult transformation of the Emilia Romagna economic system 1
1
Introduction: the placement of the region in the national and European context
Emilia–Romagna is an administrative region of Northern Italy comprising the two historic
regions of Emilia and Romagna. The capital is Bologna; it has an area of 22,446 km2
(8,666 sq mi) and about 4.459 million inhabitants.
Emilia–Romagna today is considered as one of the richest and most developed regions in
Europe with the third highest GDP per capita in Italy. Bologna has one of Italy's highest
quality of life, and offers highly advanced and modern social services. Emilia–Romagna is also
a major cultural and touristic centre, being the home of the oldest university in the Western
World, containing numerous Renaissance cities (such as Modena, Parma and Ferrara), being a
major centre for food and automobile production (Emilia–Romagna is home of numerous
iconic gastronomical and automotive industries, such as Parmisan cheese, Parma ham,
Ferrari, Lamborghini, Maserati and Ducati) and having a lively and colourful coastline, with
numerous tourist resorts, such as Rimini and Riccione.
The region of Emilia–Romagna consists of nine provinces. Nearly half of the region (48%)
consists of plains while 27% is hilly and 25% mountainous. The mountains stretch for more
than 300 km (186.41 mi) from the north to the south-east, with only three peaks above 2,000
m - Monte Cimone (2,165 m), Monte Cusna (2,121 m) and Alpe di Succiso (2,017 m).
The plain was formed by the gradual retreat of the sea from the Po basin and by the detritus
deposited by the rivers. Almost entirely marshland in ancient times, its history is
characterised by the hard work of its people to reclaim and reshape the land in order to
achieve a better standard of living.
The geology varies, with lagoons and saline areas in the north and many thermal springs
throughout the rest of the region as a result of groundwater rising towards the surface at
different periods of history. All the rivers rise locally in the Apennines except for the Po, which
has its source in the Alps in Piedmont and follows the northern border of Emilia–Romagna for
263 km (163.42 mi).
Vegetation in the region may be divided into belts: the common oak belt which is now covered
(apart from the mesóla forest) with fruit orchards and fields of wheat and sugar beet, the
pubescent and Adriatic oak belts on the lower slopes up to 900 m, the beech belt between
1,000 and 1,500 m and the final mountain heath belt.
Italy is a semi-federal country with a strong devolution of power to decentralized institutions,
namely Regions, Provinces, Municipalities and Metropolitan cities. Regions share the
legislative power with the national State. The Italian Constitution specifies the competences of
the Regions, the competences of the State and the common competences.
The Regional Government (Giunta Regionale) is presided by the President of the Region
(Presidente della Regione), who is elected for a five-year term, and is composed by the
President, the Ministers (Assessori), including a Vice President and one Under-Secretary for in
President's office.
1
For a complete and updated account of the regional economy see Ervet, novembre 2013, Il quadro
di contesto della regione Emilia-Romagna” Parte I e Parte II.
Emilia–Romagna, except the province of Piacenza, was historically a stronghold of the Italian
Communist Party and now is a stronghold of centre-left coalitions, forming with Tuscany,
Umbria and Marche the famous Italian political "Red Quadrilateral". This is probably due to
the strength of anti-fascist resistance around the time of World War II as well as because of a
strong tradition of anti-clericalism dating from the 19th century, when part of Emilia–
Romagna belonged to the Papal state.
The nine provinces of Emilia Romagna are:
Province
Area (km²) Population Density (inh./km²)
Province of Bologna
3,702
973,295 262.9
Province of Ferrara
2,632
357,471 135.8
Province of Forlì-Cesena 2,377
387,200 162.9
Province of Modena
2,689
686,104 255.1
Province of Parma
3,449
431,419 125.1
Province of Piacenza
2,589
284,885 110.0
Province of Ravenna
1,858
383,945 206.6
Province of Reggio Emilia 2,293
517,374 225.6
Province of Rimini
863
325,219 377.0
The population density, which was equal to 194,2 inhabitants per km2 in 2012 is just below
the national average. The population of this region is traditionally well distributed, so there is
not a dominant metropolis but an axis of medium size cities along the Via Emilia, where the
majority of regional industrial production is concentrated. Also the coast of Romagna along
the Adriatic sea is densely populated thanks to the huge boom of the seaside tourism in the
last decades. In the agricultural plains around Ferrara and Piacenza the population is less
dense while Apennine mountain areas are undergoing a process of loss of population and
progressive economic marginalisation.
In the past, Emilia Romagna was a region of net emigration. Between 1876 and 1976 about
1.2 million people emigrated from Emilia–Romagna to other countries. As of 2008 there were
119,369 people from this region living outside of Italy, particularly in Argentina, Switzerland,
France, the United Kingdom and Brazil. But in the last decade Emilia has become a region of
net immigration. As of 2014, the Italian national institute of statistics estimated that foreign
born residents in the region amounted to 12,1 % of total population.
Emilia Romagna is a Region full of medium sized cities. It has thirteen cities above 50,000
(based on 2006 estimates): Bologna (pop. 381,860 (metropolitan area est. 1,000,000)),
Modena (pop. 185,228), Parma (pop. 187,159), Reggio Emilia (pop. 170,355), Ravenna (pop.
149,084), Rimini(pop. 138,060), Ferrara (pop. 131,907), Forlì (pop. 112,477), Piacenza (pop.
99,340), Cesena (pop. 93,857), Imola (pop. 66,340), Carpi (pop. 64,517) and Faenza (pop.
54,749). Almost all of these cities have an impressive wealth of artistic heritage and most of
them are University site.
Emilia–Romagna today is considered as one of the richest European regions and the third
Italian region by GDP per capita. These results were achieved developing a very well balanced
economy based on the largest agricultural sector in Italy, and on a secular tradition in
automobile, motor and mechanic productions.
Emilia Romagna is mainly an industrial region. The agricultural sector still plays an important
role in the economic fabric of the region in spite of its very low share of value added, 2,1%.
The agricultural sector has aimed for increased competitiveness by means of structural
reorganisation and high-quality products, and this has led to the success of marketed brands.
Cereals, potatoes maize, tomatoes and onions are the most important products, along with
fruit and grapes for the production of wine (of which the best known are Emilia's Lambrusco,
Romagna's Sangiovese, Bologna's Pignoletto and the white Albana). Cattle and hog breeding
are also highly developed.
Farm cooperatives have been working along these lines in recent years. With their long
tradition in the region there are now about 8,100 cooperatives, generally in the agricultural
sector and mainly located in the provinces of Bologna (2,160) and Forlì-Cesena (1,300).
The engine of the regional economy is industry. Industry in the region presents a varied and
complex picture and is located along the Via Emilia. The food industry (e.g. Barilla Group) is
particularly concentrated in Parma, Modena, and Reggio. Ham and Parmesan cheese, the two
most popular food products of the region, are produced mainly in the provinces of Parma and
Reggio. The mechanical and automotive industry is localized mainly in Bologna, Modena and
Reggio Emilia. (e.g., Ferrari, Ducati, Lamborghini, Maserati, Pagani) The ceramic sector is
concentrated in Faenza and Sassuolo. Tourism is increasingly important, especially along the
Adriatic coastline and the cities of art. The regional economy is more geared to export
markets than other regions in the country: the main exports are from mechanical engineering
(53%), the extraction of non-metallic minerals (13%) and the clothing industry (10%).
The region of Emilia–Romagna has a very good system of transport, with 574 km of
motorways, 1,053 km of railways and airports in Bologna, Forlì, Parma and Rimini. The main
motorway crosses the region from north-west (Piacenza) to the south-east (Adriatic coast),
connecting the main cities of Parma, Reggio Emilia, Modena, Bologna, and from here further to
Ravenna, Rimini and the Adriatic coast.
Quality of life in the region is very high. Average income per person is one of the highest in
Europe; public services in health and education are of high standard; living conditions in the
cities are very agreeable; the quality of regional cuisine is renowned in the world.
2
Ageing and immigration change the composition of population
The amount of population in the Region was 4.446.354 the first of January 2014. It remained
stable between 1990 and 2000, as a result of a balance between a negative natural rate –the
birth rate is lower than the mortality rate- and a positive rate of immigration. In the last
decade, between 2002 and 2012, there has been a strengthening of migration. As a result of
these trends, population grew by 10%. The share of foreign people resident in the region in
2014 was of 12,0% but the share of foreign people actually living in the region is estimated
about 12,4%. This share is projected to grow up to almost 17% in 2020 and to 20% in 2030.
This share however includes a significant component of people actually born in Italy by two
or one foreign parent. This is so because nationality in Italy is granted by the ius sanguinis and
not by the ius soli. Immigrants come mainly from Morocco, Romania, Albany, Moldavia,
Ukraine, China and Tunisia.
In comparative terms, the population growth over the past decade was higher than in the rest
of Italy and Europe. The rate of migration is also higher than in the rest of the country.
This rise of population has been very unequal over the territory (see map below) with a
concentration of growth in the intermediate municipalities, in the Adriatic coast and in
eastern mountain areas. Big and very small municipalities, western mountain areas and most
of the Ferrara province experimented on the other hand a loss of population.
The age composition of population stands out relatively to the U.E. for a lower share of young
people and for an higher share of aged people. But it is also characterized by a higher share of
people in central age. This is probably the result of immigration flows bringing in the region
mostly people in working age between 30 and 50 years old. The tendency is for a reduction of
the age class between 15-39 and an increase in all other age classes.
The population of the region is also characterized by an high dependency ratio, relatively to
the rest of the country and to the U.E. This is due exclusively to an higher share of aged people
while the share of people with less than 14 years is lower than in the rest of Italy and than in
the U.E. as a whole.
Looking at the internal flows of migration, Emilia Romagna attracts people from all Italian
regions. The bulk of immigration comes from the south, specially Campania, Puglia and Sicily.
But a large contribution comes also from Lombardy, the bordering region at north and west.
As for the future, the issues at stake are:
-an increase in population if not accompanied by a similar increase in GDP leads to a fall in
GDP per capita and likely to a deterioration of the standard of living
-the ageing of population. The ageing of population put pressure on the welfare system and
specially on the health system, may have a negative impact on the propensity to change and
innovate, reduces the ratio between working and not working people
-the impact of immigration flows and of a rising share of foreign people. Immigration flows
may have beneficial effects in terms of growth and of composition of population, may have
also positive effects in terms of cultural diversity but are bound to pose serious problems of
social and cultural integration with the local communities.
-the loss of population of mountain areas. This is bound to worsen the living conditions of
population of these areas; it can lead to the disappearance of cultural heritage and the loss of
identity of local communities; to have a negative impact on environment and landscape.
3
A wealthy but slowly growing region
Emilia Romagna is a wealthy region in Europe and in Italy. This emerges clearly from the
statistics on GDP per capita which is significantly higher than those in Italy and Europe. But it
is also a slow growing region which is loosing ground compared to the rest of Europe.
The yearly growth of nominal GDP in the region between 2000 and 2011 has been of 2,6%.
Exports have been the most dynamic component of aggregate demand rising at a yearly rate
of growth of 4,4%. The share of exports on GDP grew from 27,9% in 2002 to 35,2% in 2012.
Imports grew at a yearly a rate of 5,1%. The share of imports rose from 16,8% to 20,3%. The
total weight of international trade on GDP rose from 44,7% to 55,7%. Trade balance has been
positive along the whole period
The yearly growth of real GDP between 2000 and 2011 was only 0,5%. Exports grew in the
same period at a rate of 2,6%. Growth of the region in the last twelve years has been lower
than the European and similar to growth of the rest of the country. The rate of growth has
been particularly disappointing between 2001 and 2004 and from 2008 to present. It is also
possible to focus on the impact of the present crisis analysing separately the period between
2000 and 2008 and the period between 2008 and 2011. Growth of real GDP has been negative
in the last years. The most negative contribution comes from the fall in investment and of
exports.
Yearly rate of growth of nominal GDP and of components of aggregate demand %
2000-2008
2008-2011
2000-2011
GDP
3,5
0,0
2,6
Final consumption
3,6
1,6
3,0
Household
3,2
1,6
2,8
consumption
P. A. consumption
4,9
1,3
3,9
Gross investment
Imports
Exports
4,1
6,5
5,9
-2,4
1,4
0,3
2,3
5,1
4,4
Yearly rate of growth of real GDP and of components of aggregate demand
2000-2008
2008-2011
2000-2011
GDP
1,1
-1,2
0,5
Final consumption
0,9
0,4
0,8
Household
0,5
0,4
0,5
consumption
P. A. consumption
2,5
0,5
1,9
Gross investment
1,5
-4,3
-0,1
Imports
4,1
-0,5
2,9
Exports
4,1
-1,1
2,6
A low rate of growth coupled with a positive rate of increase of population produced a fall in
the GDP per capita of the region in the last decade. This trend has led to a strong reduction of
the positive gap in GDP per capita compared to Europe: in 1998 the Emilia Romagna GDP per
capita was 32% higher than the EU15 and 52% higher than the EU27; this gap almost
disappeared with E.U.15 and reduced to 20% with E.U.27 in 2010.

The rate of growth of labour productivity has been particularly low in the region. At the
beginning of the decade the region emerged as an high productivity region by European
standards. Since then, the rate of productivity growth has been low and the gap with the
European average has reduced. The productivity level in 2007 was 25 points above the level
of European Union 28 while today is 17 points above.
The contribution to the GDP per capita growth has been decomposed in its main components:
productivity, employment, labour force and population. The main driver of the regional
economy in the decade has been productivity which accounts for more than 70% of growth. A
significant contribution came from the labour force, due probably to the increase in the
female rate of activity and to the flows of young immigrants. A negative contribution came on
the other hand from an aging population which reduces the number of people in
employment.
As far as the territorial cohesion is concerned, there are significant disequilibria in terms of
GDP per capita among the various provinces. The difference between the provinces with the
highest and the lowest GDP per capita is 25%. In the first decade of the second millennium
there has been a trend towards convergence with the three provinces with the lowest GDP
per capita growing more than the regional average.
The main issue at stake is:
the slow rate of growth of GDP and of productivity in the last decade. These trends may in the
long run decrease the standard of public services and, more generally, the quality of life of
population. Slow growth of GDP may be the signal of a declining competitiveness of the
Region and of Italy in the world economy. However slow growth can itself contribute to a
decline of competitiveness. There is a risk of a vicious circle which goes from declining
competitiveness to slow growth to a further decline in competitiveness.
4
High rates of employment but increasing shares of unstable and temporary jobs.
Emilia Romagna stands out in Italy and in Europe for high rates of activity and employment
and low rates of unemployment. At least, until the outbreak of the economic crisis.
The 2005 targets of the “European strategy for growth” of 68% for the rate of employment
and 57% for the female rate of employment have been achieved or exceeded. Female rates of
activity and employment are aligned to those of the European average whereas the rates of
unemployment are significantly lower. Emilia Romagna performs poorly compared to Europe
only for the rate of employment of aged people and for youth unemployment rate.
Within the national context all indicators of the labour market show a much better situation
than in the rest of the country.
High rates of employment make also an important contribution to keep low the share of poor
families which has been estimated at 8% against the 19% of the Italian average in2010.
This happy situation however is at high risk. The impact of the economic crisis on the
regional labour market is evident from the statistical data. The official rate of unemployment
soared in the last three years from 3% to over 7%. But the real rate of unemployment is
higher than that because the statistics do not account for unemployed workers placed in the
social safety system, the number of which rocketed since 2008. This is a feature of the labour
market that Emilia Romagna shares with most European regions.
Another negative feature of the regional labour market not emerging from our data is the high
share of temporary work, specially among young people and women. Temporary work is
widespread in all sectors, with peaks in the service sector. This has a negative impact on the
development of career and on the evolution of private life.
The main issues at stake regards the labour market are:
-the impact of the crisis on the labour market with a soaring rate of unemployment
-the high share of temporary jobs among young people and women producing uncertainty
and instability in the working and private life alike
-the impact of the factors above on the traditional social cohesion of the Region
-the low rate of employment of people over 60
5
Manufacturing as the driving sector
The most important feature of the regional structure of the economy is its industrial
specialization. Manufacturing alone accounts for 25% of all employed persons, an higher
share compared to the Italian and EU 15 or 27 averages. The share of services and especially
administrative services is on the other hand relatively lower.
Data on sectorial labour productivity signal a relatively high productivity in the agricultural
sector. Here the advantage relatively to the rest of Italy and Europe is large. Emilia Romagna
registers an high productivity also in the industrial sector, but the positive gap with the rest of
Italy and Europe is contained and decreasing over time.
Within the manufacturing sector, the region has a very strong specialization in manufacturing
of machinery and equipment which covers over 20% of manufacturing production. Other
sectors of specialization are manufacturing of wearing apparels and other non metallic
mineral products and fabricated metal product.
From the technological point of view, the industrial sector is strongly specialized in medium
technology products while it is relatively weak in high technology products. This is an element
that could compromise in the long run the competitiveness of the industrial system.
The Emilia Romagna economy shares with Italy the same high fragmentation of the industrial
system.. Firms with ten or less employees in Italy represent 94,6% (92,2% in E.U. 27)) of all
firms, the 46,6% (29,6% in E.U. 27) of employment and 29,5% (21,2% in E.U. 27) of total
value added. The weight of micro-firms in Emilia Romagna is only slightly lower than in the
rest of the country. The only differentiating feature is a relatively high weight in terms of
employment of firms with over 250 employees. The 433 firms of this size in 2010 absorbed
361.239 employees, that is over 22% of all employees. (see table below).
The size of the firm is an important variable in the analysis of an industrial system. Small
firms may suffer of serious shortcomings relatively to bigger ones: weak capacity of research
and development, difficulties in getting credit, weaknesses in the governance of the firms,
poor endowment of human capital, lower capacity of entering international markets, difficult
generational change. It would be however wrong to attribute character of inefficiency to all
small firms. Small firms can be very efficient if they succeed in specializing in niches of
markets, in networking with other small firms, in interacting and integrating with the external
context, in exploiting the opportunities offered by a positive external context. This is exactly
the situation of a large number of small firms in Emilia Romagna and in the North of Italy.
contributo maggiore in termini di occupati: 133.593, pari al 27,3% dell’occupazione totale nel settore. Poco inferiore è il contributo della classe precedente (50-249), con 1.144 imprese e 114.614 occupati (23,4% del
totale nel settore).
Imprese e addetti per classi di addetti e settori di attività economica – anno 2010 (valori assoluti)
Fonte: Servizio statistica, Regione Emilia-Romagna
L’analisi della dimensione a livello settoriale offre alcuni spunti interpretativi. Se, ad esempio, è innegabile che la struttura produttiva sia piuttosto frammentata nell’aggregato commercio, trasporti e ristorazione, Historically, the industrial system of the Region has been characterized by industrial clusters
nel quale
operanoterritorial
87 impreseconcentration
con 88.135 dipendenti
(17,2%) and
nella aclasse
con 250 e ofpiù small
addetti,firms.
527 These
with
a strong
by sector
prevalence
clusters have played a crucial role in the development of the region. These clusters today are
imprese con 50.614 dipendenti (9,9%) in quella precedente (50-249), indicazioni di segno opposto vengono
still important but the industrial organization of the region is evolving toward long
production
chains
diffused
larger
of territory.
are linked
and
dagli altri servizi,
nei quali
le 113over
imprese
della portions
classe dimensionale
maggioreFirms
contribuiscono
per ilbackward
27,2%
forward in national and sometimes international networks. On the same time there is a
all’occupazione
totale.
che nelin comparto
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(fornitura
di energia
elettrica,
gas,the
vapore
tendency
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increase
the average
size of
the firms.
What
will be
ende result in
terms of competitiveness of this on going transformation is still uncertain.
aria condizionata) e in quello delle attività finanziario-assicurative e noleggio, le imprese più grandi sono
The
degree nell’industria
of openness
of the regional
andaddetti
the industrial
sector
in particular,
is
concentrate
manifatturiera.
Il 26,5%economy,
(125.586) degli
di questo settore
(473.449)
è
very high. Exports represent an important component of regional GDP and of industrial
production. The capacity of exporting, measured as share of exports on goods on total
5
production
of goods,
fordella
Italy.
manufacturing
particular has
Stime per il 2010,
basate suiisdati30%
relativiversus
al periodo 21%
2005-2009
bancaThe
dati sulle
statistiche strutturalisector
d'impresa in
di Eurostat.
a structural positive trade balance, i.e., exports are greater than imports. The growth of
Le stime sono state elaborate da Cambridge Econometrics. I dati si riferiscono alla "economia aziendale" comprendente industria,
exports and imports in the last decade is also due to the increasing importance of imports and
costruzioni,ofcommercio
e servizi (NACEgoods
Rev. 2 Sezioni
da B a J, L, M e N). Essi
non comprendono
dei settori
agricolo,
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exports
intermediate
(intra-industry
trade).
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linked
to the
delocalization
silvi coltura e of
dellaimportant
pesca, né i serviziphases
essenzialmente
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vantaggio
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processes
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specialization
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and nel
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the
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Eurostat consiste
fatto che le statistiche
di diversiofpaesi
sonoproduction
state armonizzate
e sono dunque comparabili. Lo svantaggio è
che per alcuni paes i questi dati possono differire da quelli pubblicati dalle autorità nazionali
Another
interesting indicator of the regional system is the weight of foreign direct investment.
6
La
diversa
fonte dei dati con relative specifiche metodologiche giustifica il piccolo scarto tra i valori esposti relativi al livello
Outward foreign direct investment is an indicator of the degree of internationalization of our
nazionale
firms
and of the delocalization processes of the productive chain. Inward foreign investment
is an indicator of the degree of attractiveness of our region or country for foreign investors.
The stock of outward foreign direct investment continuously increased since 2004. It
increased from 12% of regional GDP to 14
25% of regional GDP in 2011. The stock of outward
foreign direct investment is higher that the stock of inward investment, that is around 15% in
2011. The stock of both outward and inward foreign direct investment is in Italy and in Emilia
Romagna much lower than the relative stocks of other European countries such as the U.K. or
France. These stocks in the region are however higher than the relative stocks in the overall
country. The country destination of foreign direct investment is the E.U. for around half of the
total. An important share is also absorbed by the American continent. The source of inward
foreign investment is the E.U. for 90%
The main issues at stake are:
-the creation of an “highly knowledge intensive” economy in line with the Lisbon strategy and
Europe 2020 guidelines
-the building of strong and stable links between activities of research, technological transfer
and production with the aims to foster innovation and productivity on a permanent basis and
-to stimulate the start up of high tech firms
-the upraising of skills, specially in the field of high technology
-the implementation of policies tailored for territorial clusters and production chains
-the improvement of corporate governance of firms, specially small firm
6
More effort is needed in research and innovation
Statistical evidence on the region’s capacity to produce innovation shows no fully consistent
results. Research and development expenditure and number of patents have been used as
proxies for innovation capacity.
The first index is the share of expenditure on Research and development on GDP. This does
not differ significantly from the national share. More exactly, it has been lower up to 2005 and
higher since 2007. This share however has been persistently lower than that of the European
Union at 15 and at 27: 1,47% versus 2,10% and 2,01%. This negative gap is due to the low
share of expenditure on research and development in the private sector. This is probably the
result of the small average size of Italian firms as spending on research is concentrated in
large companies that have the resources and the convenience to internalize activity on
research and development
A second indicator to measure the propensity to innovate in the Region is the number of
applications for patents standardized for 1.000.000 inhabitants. It emerges that the region
performs better than Italy and Europe on this specific indicator. However, if we focus on
patents on high technology products, the region performs badly by European standards. This
is so because the region is specialized in medium technology sectors rather than high
technology sectors.
A composite national index of innovation (Regional Summary Innovation Index) is produced
by the Ministry of infrastructure. According to it, the provinces of Bologna, Reggio Emilia and
Modena display levels of innovativeness much higher than the national average while the
provinces of Parma, Forlì, Cesena and Rimini levels higher than the average.
The important issues at stake are:
-the share of expenditure on research and development by the private sector is low by
European standard
-innovativeness in the high technology sectors is unsatisfactory by European standard
-the prevalence of small and medium sized firms may represent an obstacle for technical
progress springing by research and development activity
7
To strengthen the link between education, research and technological innovation in the
productive system
Human capital endowment is very important for innovation and competitiveness. It has been
recognized as one of the driving factors of growth in modern economies.
The education system in the region is well structured and of good quality.
The region is site of four State Universities with branches in all the regional provinces and of
two branches of the Catholic University and of Politecnico. The Bologna University in
particular is the ancient University in the western world and by far the largest in the Region. It
has been founded in 1088 and it welcomes about 60% of university students in the region.
Regional Universities have a great power of attraction from the rest of the country. About
50% of all students come from outside the region.
The region is also well known for a high standard of secondary schools and for the system of
nursery schools. The share of people with secondary education is above the national average
and it is increasing. The share of students attending secondary schools on people aged
between 20-24 is higher than national average as well. It remains however high the drop out
rate in secondary schools. The high standard of nursery schools is widely recognized but its
reception capacity is proving to be inadequate in the face of the arrival of many immigrant
low income families with several children.
Much emphasis has been placed in regional strategies on human capital, on lifelong learning.
European social fund has been giving in the last decades an important financial contribution
to the working of the training system in the region. The results are satisfactory by national
standards but still insufficient to meet European requirements. The rate of participation of
adults to lifelong training programmes was about 7,2% in 2006, higher than the national
share, but well below the European target for 2010 of 12,5%.
A weak point, that the Region shares with the country, is the low number of people aged 2564 with tertiary education by European standards. The data in 2012 show that the Region has
an higher fraction of tertiary education relatively to the country (17,9% versus 15,7%) but
much lower compared to the European Union 27 (17,9% versus 27,7%). These figures
however do not tell us whether this gap is an historical gap due to lower participation rates of
the older generations or it is a gap still existing for the present generations. Figures referred
to the last three years show an increase in the share of secondary education at expense of
lower education but not a clear upward trend of the share with tertiary education. It is worth
noting that the share of females with tertiary education is higher than the share of males. This
gap in favour of females, found also in Italy and Europe, is particularly high in the region.
The main issues at stake are:
-the low share of people with tertiary education by European standards
-the unsatisfactory link between the system of high research and the productive system
-the low participation of adults and employed to the lifelong learning and training
programmes
8
To reduce the environmental impact of the transport system and to enhance the use of
Internet
The Emilia Romagna region is a very important node of the Italian transport system. It works
as a connection between north and south of Italy and between central Europe and
Mediterranean countries. Within the scheme of Transport European Network, the region is
interested to Corridor 5 between Lisbon and Kiev, Corridor 1 between Palermo and Berlin
and to the transport area of East Mediterranean and Aegean seas.
The road and railways systems of the region are highly developed. The motorway density of
25 kilometre per square kilometre and the railways density of 56 kilometres per square
kilometre, are slightly higher than the Italian average and roughly similar to the most
developed regions of Europe. The motorisation rate, measured as the number of cars per
1000 inhabitants, is 608, almost in line with the Italian average but significantly higher than in
Europe 27.
One main problem is the overwhelming use of road transport both for private use and for
freight. 85% of people use private transport on road for personal mobility and 96% of freight
travels on road. This poses serious problems of congestion and of pollution. The area around
the capital city, Bologna, in particular suffers of heavy traffic congestion. The transport system
represents the most important source of pollution in the region.
A dramatic consequence of the heavy road traffic is the high number of victims in road
accidents. The mortality rate, measured as number of deaths for million of inhabitants, is in
Emilia Romagna significantly higher than in the rest of the country and in Europe 27.
The region also has four airports and one port. The Bologna airport is the most important and
represents around 80% of the regional air traffic, Rimini is specialised in touristic flights, Forlì
is the site of an important European low cost company while the recently born airport of
Parma is rapidly increasing the number of flights. The port of Ravenna plays an important role
in freight to eastern Mediterranean and black sea markets.
Accessibility in contemporary world does not depend only from the efficacy and density of the
transport system but from the coverage and efficiency of the telecommunication system.
Accessibility of a region in contemporary world does not depend only on the efficacy of the
transport system but also on the coverage and efficiency of the telecommunication systems.
Europe is criticized for having fallen behind in the absorption and use of new communication
technologies. This delay would also be responsible for the low rate of productivity growth in
many European countries. Even within Europe there are many differences between Member
States and Italy would be one of the countries with a deeper gap.
The Regio data bank offers some information to value the position of the region in the access
and in the use of Internet within the Italian and the European contexts. A static analysis
referred to the last year shows that Emilia Romagna displays a better situation compared to
the Italian average but a significant gap compared to Europe. On the same time a dynamic
analysis testify a continuous and significant improvement in the diffusion of internet over
time.
In Emilia Romagna 61% of households with at least one member between 16 and 74 have
access to internet and 51% have broadband access. In Italy these percentages are slightly
lower (56”% and 49% respectively) but in Europe 27 are significantly higher, 68% and 61%.
These figures confirm therefore a general delay of the country in the diffusion of Internet.
Other comparable data refer to individuals between 16 and 74. The share of those who use
regularly internet is in the region of 51% while those who have never used it is 36%. This
picture is only slightly better than in Italy but much less positive compared to Europe 27,
where the individuals using Internet regularly are 65% and the individuals who have never
used it only 22%. As far as the use for personal purchases through internet, it is much more
widespread in Europe 27 where 40% of people buy on line than in Emilia Romagna where
this share falls to 19%. Finally, this persistent gap with Europe notwithstanding, a favourable
trend is clearly discernible in Emilia Romagna as in Italy: over a period of five years only, the
number of households who have access to internet and to broadband access has rapidly
increased, the number of individuals who use internet regularly and who buy on line soared,
while the number of those who have never used it plunged.
The main issue at stake is:
-the significant gap in the use of internet by households, individuals and firms
9
Tourism: an important component of regional economy
Tourism stands out as an important component of the regional economy thanks to a rich
endowment of natural resources and cultural and historical heritage. It represents about 7%
of the regional GDP. The Adriatic coast, the cities of art, the mountain areas of Appennini, the
Po valley, natural parks and protected areas, the health spas represent poles of touristic
attractions from all over the world.
This vocation of the region is testified by main statistics on tourism. The number of nights per
inhabitant spent in the touristic accommodation of the region (8,71) exceeds those of the rest
of the country (6,38) and by far those of the rest of Europe 27 (4,85). It is lower only relatively
to the North East due to a “Venice effect” combined to a “Dolomiti effect”.
The average holiday length and the total nights spent are in the region higher relatively to
Italy and Europe alike. But the trend for both indicators has been negative in the last decade.
it has decreased in the last ten years.
The touristic supply, in terms of number of establishments per square kilometre, is rather
stable, around 38 in the last five years. Figures for the rest of Italy are higher while for Europe
are lower. The number of bed in the establishments is however higher in the region compared
to Italy. This suggests that there are in the region fewer but larger hotels. Finally, it emerges a
trend in the region as in Italy and in the rest of Europe towards the decrease of the weight of
hotels on total establishments. This implies the diffusion of different forms of accommodation
such as bed and breakfast.
10
To promote innovation in the health system
The health system in Emilia Romagna is considered to be of excellent quality. This is testified
by the fact that Emilia Romagna has in Italy the highest incidence of hospitalization from
other regions.
The position of prominence of the regional health system in the Italian context is confirmed
by data on the number of beds and on the number of doctors. The number of beds for 100.000
inhabitants in 2009 is 406 versus 381 of the north-east area and 364 of the Italian average. It
can be discerned however a declining trend in the last decade as an effect of rationalization
and saving policies. A similar trend is present in other Italian regions and even in Europe.
The number of physicians in the region for 100.000 inhabitants is 512 versus 410 for the
Italian average and 392 for the north east area.
The comparison with the European situation is possible only for the number of beds. Here, the
European endowment is higher than the regional one, both with reference to Europe 15 and
of Europe 27.
Another set of indicators refers to infant mortality rate and life expectancy. The figures show
a situation in the region better than the Italian and European. The infant mortality rate is in
Emilia Romagna 2,7 versus 3,3 for the Italian average and 4,5 for Europe 27. A rapidly
declining trend can be discerned for all three areas in the first decade of 2000’s. Life
expectancy in the region is 82,4 versus 81,9 of the Italian average and 79,4 of Europe 27. A
common upward trend is detectable in the three areas. Life expectancy is everywhere
significantly higher for females than for males.
The main issues at stake are:
-to promote research and innovation within the health system
-to deal with the challenge of an ageing population both in terms of souring costs of the
system and in terms of diversification of services supplied
-to promote integration between the health system and the social assistance system
-to ensure accessibility and inclusiveness of the health system
11
An overall view
The regional economy is a diversified economy. It has a strong and diversified manufacturing
sector that plays a driving role in regional growth. But it still has a very productive agriculture
sector which gives a significant contribution to the overall economy and it has a flourishing
touristic sector. This diversification is certainly a point of strength of the regional economy.
The working of economic activity has been supported by a favourable institutional and social
context. Good relations between businesses and local institutions, a good endowment of social
capital, a very advanced local welfare state, a reasonable degree of income and social equality.
This ideal model however suffers of the impact of the globalization process. The globalization
process forces all the advanced economies to find a new position in the international division
of labour. These economies cannot compete with emerging countries such as China and other
Asian rapidly developing countries, or some Latin American countries or even some eastern
European countries simply on the field of cost and price competitiveness and in the field of
low or even medium technology production. They can only compete on the field of high
technology, of human capital intensive production, of high quality of products. This forces the
economic structure of the region to undergo a process of structural transformation, that some
students have called metamorphosis. The manufacturing sector is at the centre of this process
of transformation.
Very synthetically the model of the past was based on an high number of small firms, strongly
specialized in specific phases of the production process, with strong subcontracting relations;
using skilled labour and low and medium technologies; geographically concentrated in
territorial clusters, operating in an external context characterized by social cohesion and
business and local institutions cooperation. The system was efficient as a whole and not only
in its individual parts. It is said in these cases that the system benefited from higher external
economies, i.e. those economies that are not due to factors internal to the individual firm but
to the complementarity of the different parts. The high degree of efficiency and of the
competitiveness was evident in the great exporting capacity and in the trade surplus
exhibited by the manufacturing sector. This kind of model was typical of the so called
industrial districts such as those in mechanical engineering in Modena and Reggio, in clothing
and textile in Carpi, in ceramic and tiles in Sassuolo.
But the challenge of globalization is progressively forcing the transformation of this model.
Firms in this model are too small to guarantee an adequate rate of technological progress or
of R&D activity; skilled labour is not more sufficient for upgrading the production process but
high human capital is needed; there are phases of the production process that cannot sustain
the competition of low labour cost countries. The main features of this process of
transformation are: an increase in the size of firms with the emerging of a selected number of
larger firms in each sector that play a role of leadership; a process of restructuring with a
strong decrease in the number of firms and workers; an enhanced capacity of research and
development and an upgrading of human capital; a diversification of products; a stronger
specialization on upstream and downstream activities at high human capital intensity (e.g.,
R&D, design, planning, marketing, after-sale activities, etc.); the delocalization or the
outsourcing of important parts of the productive process in a strict sense; the lengthening of
the productive chain with processes of outsourcing in emerging countries; the emergence of
new firms in the cultural and creative sector at high human capital intensity (firms operating
in the fields of cinema, television, music, cultural heritage, organization of artistic events,
architecture, design, artistic handicraft, marketing, advertisement, communications,
photograph, food and wine).
There is in other terms an attempt going on to reposition the region's economy and its
manufacturing sector in higher value added segments of production and more protected from
international competition of emerging countries; an economy then able to exploit the
advantages of globalization in terms of enlargement of markets but on the same time to
reduce the pressure of competition of emerging countries. The final outcome of this process of
transformation are however still uncertain.
Several are the issues at stake of this process of transformation:
-will this transformation of the Emilian model be fully accomplished in the future?
-how the present crisis will impact on the on going transformation?
-will the system succeed in maintaining the balance between equity and efficiency of the
previous model?
-how the national and European contexts will affect the regional economy?
what kind of industrial policies can support this process of transformation?