This file is divided into two parts. The first part contains a rough analysis of the Emilia Romagna Region. It is based mainly on statistical data drawn from the Regio Data bank, complemented occasionally with data from different sources. The analysis has an exclusively didactic purpose. It contains a comment of the main statistical data that should be displayed in any territorial report. The second part contains a synthesis of the ERDF Regional Operational Programme of the Emilia Romagna for the planning period 207-2014. This is for students to know the basic structure and main content of this kind of programmes. 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 and Municipalities. 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 197 inhabitants per km2 in 2010 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 2012, the Italian national institute of statistics estimated that foreign born residents in the region amounted to 11,9 % 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. However the agricultural sector still plays an important role in the economic fabric of the region contributing 5.8% of the regional product. 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 4.459.246 the first of January 2012. 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 2012 was of 11,9% 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 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 other Europeans regions has reduced or disappeared. The productivity level in 2007 was 9 points above the level of European Union 27 and 2 points above European Union 15. The same values in 1999 were 15 and 9 points. 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 regions 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 28% 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 diiferentiating feature is a relatively high weight in terms of employment of firms with over 250 employees. The 433 firms of this size in 2010 absorb 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, less quality in the human capital, lower capacity of penetration in 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 delle utilities (fornitura di energia elettrica, gas,the vapore tendency toward an Oltre 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, della exports intermediate (intra-industry trade). This leisimprese linked to the delocalization silvi coltura e of dellaimportant pesca, né i serviziphases essenzialmente non commerciali come l'istruzione e la sanità. vantaggio dell'uso di dati in the processes of the production process and Ilthe specialization upstream and nel downstream activities the chain. 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 favorable trend is clearly discernibile in Emilia Romanga 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 indivuals 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 and individuals A similar gap in the use of internet by 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 accomodation 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, ie 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? 1 The planning document of Emilia Romagna for the period 2007-2013 The document presents the typical hierarchical structure of the E.U. documents. It starts with the identification of 3 principles inspiring the whole regional strategy of development. It follows with the identification of 5 regional priorities. It continues with the enunciation of 10 overall objectives, which should be pursued by regional policies. It proceeds with the disaggregation of the overall objectives into 26 specific objectives. It ends with the identification of projects suitable to reach the specific objectives. PRINCIPLES PRIORITIES OVERALL OBJECTIVES SPECIFIC OBJECTIVES PROJECTS We carry out our summary starting from the overall objectives of the regional strategy 1.1 Objective 1 Overall objective 1: To reinforce the regional engagement towards research and innovation supporting innovative changes and the regional network of research and technological transfer Specific objectives: To strengthen the technological and research network and to support innovation of the productive system To improve technical and scientific skills for innovation and research To improve the governance of the research activity and of technological and managerial innovation The first overall objective is to strengthen the activity of research and of technological transfer in order to promote innovation and to enhance competitiveness of the economic system. This objective includes three specific objectives. The first is to strengthen the network of research and technological transfer and to enhance competitiveness of the productive system. This includes policies to consolidate the existing network of industrial research and technological transfers; to support industrial research of firms; to focus research on specific technological clusters already rooted in the territory; to foster the start up of high tech firms. Policies should also encourage firms to undertake collective research focusing on six technological platforms: high tech mechanical engineering; environment, sustainable development and energy; agroindustry; building industry; life and health sciences; information and communication technologies. A particular emphasis is placed on the passage from innovation and invention to new products and productive processes The first objective can be undertaken only by upgrading the endowment of human capital, which is the task of the second specific objective. The focus is here on high tech scientific education. The pursue of this aim includes policies to upraise skills in activities with a high potential of innovation; to focus on permanent training on areas of particular interest for the regional industry; to support the start up of firms in strategic sectors of the regional economy. The program includes also the creation of a network of technical centres in the territory, specialised consistently with the productive vocation of each area. The third objective focuses on professional and organizational innovation in the social assistance and health systems. The aim is first of all to create or upgrade skills to deal with the new needs of persons and families rising from the demographic and social changes of the last years. This include policies to foster research and innovation within and on the health and the social assistance systems; to promote training of professionals in social care and health; to improve the governance of the health and social assistance systems; to promote joint research between the Region and the University on “Life Sciences”. 1.2 Objective 2 Overall objective 2: To invest on human capital raising the skills and competences of citizens, workers and entrepreneurs in the perspective of lifelong training Specific objectives: to rise the level of knowledge and skills consistently with the needs of the economic system to invest on skills of workers and entrepreneurs to strengthen the education and training systems The second general objective of the strategy focuses on human capital. The aim is the upraising of skills and competences of all citizens through education, lifelong training and the access to the labour market. The pursue of this objective includes policies to increase participation in training and levels of education; to improve the quality and efficacy of the regional employment services; to implement active labour policies; to ensure young people the access to the labour market; to enhance the skills of immigrants; to reconcile times of work and life; to promote active aging; to support workers adaptability. 1.3 Objective 3 Overall objective 3: To support business investments aimed at promoting innovation, increasing competitiveness and improve social quality of firms Specific objectives: To support innovation and improve social quality of firms To promote the start up of innovative firms To create innovative instruments of finance The third objective focuses on innovation and competitiveness of the productive system. The target of policies is firms and cluster of firms. They include interventions to support innovation, to enhance skills, to foster internationalization processes, to simplify administrative procedures. The overall objective is divided in three specific objectives. The first focuses on product, process and managerial innovations of firms. Policies contribute to the financing of business investment with these expected effects. Emphasis is also placed on the quality of the productive system in terms of sustainability, social responsibility and work safety. Finally, attention is placed on innovation processes undertaken at a cluster or a chain of value scale rather than at a single firm scale. A second specific objective regards the start up of high technology and knowledge intensive firms able to economically exploit the results of scientific research. Special attention is placed on spin-off by researchers from university or other centres The third objective regards the instruments of finance. Policies will aim at easing the access to credit and at developing new instruments for high risk and high expected profitability 1.4 Objective 4 Overall objective 4: To promote the environmental and energy sustainability of the productive system Specific objectives: To provide incentives for sustainable production and consumption Energy qualification of production and services Environmental qualification of productive areas The overall objective 4 focus on energy and environmental sustainability of the production system. It includes interventions on environmental innovations, use of renewable sources of energy and energy saving, adoption of clean technologies, acquiring environmental certifications, enlargement of green markets and larger use of green public procurement. This objective is divided into three specific objectives. The first refers to sustainable production and consumption. It is pursued on the supply side by incentives to adopt clean technologies in the typical industrial sectors of the region and by adoption of environmental certifications; on the demand side by the enlargement of green markets and by the use of green public procurement. The second objective refers to energy saving, diversification of energy sources and renewable sources of energy. It include policies to increase energy efficiency, to rise the share of renewables sources of energy, to invest in biomass equipment in agriculture. The third objective concerns the environmental qualification of productive areas. This implies the application of environmental principles in the creation of new productive areas. These principles apply to different aspects of the productive areas, such as transport and mobility, habitat and landscape, energy, materials and waste, noise and water. The overall goal is the reduction of the environmental impact of production and services. 1.5 Objective 5 Overall objective 5: To strengthen the infrastructural network for a better and sustainable accessibility to regional territory Specific objectives: To strengthen the local railways system and the local public transport To improve sustainable mobility in urban and productive areas, potentiate the integration and interconnections of different modalities of transport, to improve the links between the local and the non local transport system. The overall goal is to strengthen the infrastructural network to improve accessibility to the regional territory. The pursue of this objective implies policies to potentiate the local railways system, to create a fast link between Bologna railways station and Bologna airport, to reinforce the road network at some crucial junctions, to strengthen the local public transport and to reduce its environmental impact. Emphasis is placed on the integration and interconnection of different transport modalities. Finally, a specific task is to undertake joint projects with other Italian and foreign regions to potentiate the European network of road and railways systems within the framework of the “Territorial cooperation” objective of the cohesion policies. The focus is here on the trans-European corridors as corridor 1 (LisbonKiev) and 5 (Berlin- Palermo ), on the motorway along the Adriatic coast, on sea accessibility in the area of Western Balkans. 1.6 Objective 6 Overall objective 6: To innovate and qualify the community welfare system and improve the quality of life of people Specific objectives: To pursue inclusion by means of training policies. Aims are stability of labour relationships, work safety, skills for active citizenship, skills in the social assistance and health systems in order to introduce professional and managerial innovations The objective 6 comprises policies on welfare and quality of life. This is an important component of the regional strategy. These policies must ensure to all citizens of the region full participation to the economic and social life of the community. They must combat all forms of social exclusion and poverty, to guarantee equal opportunity in the access to the education and the training systems, to improve and integrate the health and social systems, to promote the quality of work. These policies, in particular, must deal with needs arising from three new social and demographic phenomena. A first phenomenon refers to the ageing of population. This raises not only serious problems of health and of social assistance but also of better use and enhancement of an important human resource. The number of aged people is expected to increase in the future, specially very aged people. This will put pressure on the health system, will create a rising demand of personal care, will have an impact on the housing demand as the average size of households is decreasing and their number increasing. Many of these people however are still in the condition to give a contribution to the social and economic activity of the region. The rate of activity of old people is still very low in the region and its increase is a target of policy, in line with the European guidelines. It may make easier their social integration, and reduce the dependency ratio alleviating the financial sustainability problem. A second phenomenon refers to immigration flows. Immigration produces important benefits to the regional economy. It supports the level of population more than compensating the negative natural rate. It enlarges the share of working ageing population decreasing the dependency ratio. It may in some cases enrich the endowment of human capital. But immigration poses on the same time difficult problems of integration due a difficult access to the labour market, a low level of education, a poor knowledge of the language or even racial and cultural discrimination. Other problems of integration are now arising with the arrival of women and children due the family reunification of the first immigrants. Children of immigrants represent an increasing share of student school. Their integration in the school community is not always unproblematic. Finally the role of foreign women in care activity of aged or unhealthy people has important repercussions on the family relationships and on the supply of social assistance services. A third problem regards the quality of work. As we have seen, the Emilia Romagna region performed very well in terms of rate of activity, employment and unemployment, both for men and women. The same cannot be said for quality of work. Job insecurity has become a scourge of the labour market, affecting in particular young people and women. The alternation of temporary jobs and spells of unemployment obstacles the professional growth of young people and delays the moment of the formation of a new family. This calls for policies aimed at stabilizing employment relationships and at increasing adaptability of workers through lifelong training measures. 1.7 Objective 7 Overall objective 7: To defend and develop biodiversity, to prevent and to manage natural risks, to protect land and coast Specific objectives: Land and coast defence in terms of management of territorial risks and protection of habitat and ecosystems Qualitative and quantitative control of hydric resources Decontamination of polluted sites Safeguard and development of a regional ecological network The defence and enhancement of natural resources is a crucial aspect of the Emilia Romagna Region. Environment plays an important role to upraise the quality of life of its inhabitants and it represents a crucial factor of attraction for mobile resources from outside the Region. Emilia Romagna pursues the Kyoto targets in terms of limitations of gas emissions and greenhouse effects. Important policies consistent with the pursue of this objective regard a correct management of natural resources, defence of natural environment, prevention of territorial risks, safeguard of biodiversity, enhancement of the touristic and cultural potential of the environmental endowment. The overall objective is divided into four specific objectives. The first refers to land and coast defence in terms of management of territorial risks and safeguard of habitat and ecosystems. The pursue of this objective includes interventions on different areas. An important area of intervention is the Po Basin which includes 16 millions of inhabitants and accounts for 40% of national GDP. Actions in this area focus on the control in the use of water in terms of quality and quantity, on territorial risks prevention, on touristic and cultural promotion, on environmental requalification of the river banks and on improvements on the management of the whole basin. A second delicate area of intervention is the Adriatic coast. Here the problem is to find a fragile equilibrium between the heavy touristic exploitation of the coast and the defence and requalification of natural resources of the area. This includes interventions in the fields of sustainable mobility (coastal underground between Cattolica and Ravenna; motorway between Cesena and Venice), pollution of coastal waters and aquifers; of environmental impact of agriculture and breeding. A second specific objective regards the sustainable management of water resources. Interventions focus on the qualitative and quantitate protection of surface and drinking waters. A third specific objective regards the decontamination of polluted areas, which have been already identified in the Regional Plans of Drainage. The idea here is to link interventions aimed at the cleaning of the contaminated sites with interventions to equip these areas for the purpose of a sustainable development of production. The final specific objective is the building of a Regional Ecological Network. This is a wide objective to improve the quality, the efficiency and the identity of the whole regional territory adopting an integrated approach. It includes interventions on different fields and with different aims. To preserve and improve the natural and cultural endowment of the region; to develop a spread receptivity for an use of territory during the whole year by diluting the touristic load in space and time; to realize a regional network of supply aimed at improving the quality of information, diffusion and trading of goods and services; to improve professional skills in the fields of touristic and environmental activities. 1.8 Objective 8 Overall objective 8: To promote and enhance the cultural and environmental endowment in order to increase competitiveness and attractiveness of the regional territory Specific objectives: to enhance and promote cultural and environmental resources in order to foster economic development to qualify and innovate services and activities in order to increase the accessibility of the cultural and environmental endowment The aim of the overall objective 8 is to exploit the environmental and cultural resources for tourism in a framework of sustainable development. The emphasis is here on the potential impact of a productive use of these resources on economic activity. The overall objective is articulated into two specific objectives. The first is to promote and develop cultural and environmental resources to foster economic development. This includes interventions to qualify and promote specific areas and public goods for use of people and tourists alike and improve the supply of specialized services to make natural and cultural endowment more accessible to people. The second specific objective is to improve quality of services through the upgrading of entrepreneurial activities associated with the interventions of cultural and environmental development. As regards environmental goods, interventions should be undertaken aimed at raising quality of reception, increasing accomodation capacity, improving material and immaterial accessibility. As regards cultural assets, actions should be implemented to improve the supply of services to make easier access to cultural heritage and to encourage the start up of innnovative firms. 1.9 Objective 9 Overall objective 9: To exploit the territorial potentialities and to support ex-objective 2 areas Specific objectives: High specific and high potential regional areas Mountain areas of Appennini System of the eastern Po valley The objective 9 focuses on the specificities of different parts of the regional territory. The idea is to elaborate and implement polices tailored to the features of selected areas. The emphasis is on difference as a value and on territorial specificities of policies. Three typologies of intervention areas have been identified. The first includes areas with strong specializations, marked specificities and a high economic potential. Policies should aim at enhancing the features of these areas and at high lighting their identity. The second typology comprises the mountain area of Appennini. Policies here must pursue different goals. Some interventions focus on prevention of risks, environmental defence, maintenance of infrastructures and on development of settlements. Other interventions focus on defending the standard of living of population maintaining an adequate supply of public services, abating the digital divide, upgrading the housing stock and rural villages. A final group of interventions should have the more ambitious goal of representing experiences of excellence in the fields of production, innovation and research, promotion of rural space, territorial governance. The chain environment-energy, accessibility of mountain areas, defence of landscape and biodiversity may be privileged areas of action. A third typology of areas of intervention include the provinces of Ferrara and Ravenna. These are the less developed areas of Emilia Romagna with an industrial sector particularly weak, a still significant weight of agriculture and of agroindustry and lower rates of activity and employment compared to the rest of the region. The touristic potential is high but still underutilized. Three lines of action have been identified in these areas. The first concerns the completion and strengthening of equipped productive areas and the support of the touristic supply of the Adriatic coast; the second aims at strengthening mobility and communication infrastructures focusing on the system of waterways, on infrastructures and interconnections of Ravenna port and on the digital divide of these areas. The third line consists in the enhancement of the territorial identity through the exploitation of the great potential of environmental resources and cultural heritage of the area. 2 1.10 Objective 10 Overall objective 10: To promote competiveness, quality and attractiveness of network cities Specific objectives: to promote the ability of cities to function as engine of growth to ensure social inclusion, well being and environmental quality to create a network of cities Cities play an important role in the regional strategy, in line with the European strategy 2020 and the Community strategic guidelines. Cities represent a typical case of agglomeration economies. They attract population and skilled workers, innovative firms and advanced services, universities and research centres. Their interaction, made easier from the physical proximity, becomes a crucial element for the competiveness of the region. It is important then to undertake policies which maintain and strengthen the power of attraction of cities. This overall objective is pursued in the region by means of three specific objectives. The first is to promote the capacity of the city to work as engine of growth. This aim can be pursued by policies to attract in the city the location of advanced services, innovative firms, high skill workers, research centres. It is also important to ensure the material and immaterial accessibility to the cities, working on transport infrastructure, local mobility and information technologies. An important project in this framework refers to the realization of a system of technopoles, intended as specific places where to locate high tech firms, advanced services and research and technology transfer centres. The physical proximity of these organizations is supposed to favour the interchange, the cooperation and to create external economies. The second specific objective is to promote social integration, well being and environmental quality in the cities. This includes a large variety of policy fields. On the environment side, it includes interventions on monitoring of air quality, energy saving, local sustainable mobility and urban regeneration according to criteria of eco-sustainability. On the well being side, it includes interventions for social inclusion, for the diffusion of new communication technologies, on urban safety. Special attention is placed on inclusion of aged people through a specific project. The third specific objective is the creation of a network of cities. This is an instrument that in a polycentric system of cities should favour coordination of choices, specialization and cooperation. It should play a crucial role in all those fields where policies can be performed efficiently only at a regional or supra-regional scale. Such as transport infrastructures, logistics, location of advanced services, urban planning, immaterial networks. 2 THE GOVERNANCE OF THE PROGRAMME An important part of official documents is generally devoted to the governance of the programme, that is the “rules of the game”. This incudes the identification and distribution of responsibilities among the different institutions, public and private agencies, private subjects as well as the modalities of their relationships. (Who does what and how). It includes in particular the identification of the monitoring committee, the description of the evaluation activity, compliance system (premiums and sanctions). It also includes a system of targets and of indicators 3 THE FINANCING OF THE PROGRAMME This includes the specification of the total amount of financing and the identification of the different sources of financing ( national, European, private) 4 THE PROJECTS For each project it must be specified: the aim of the project; the beneficiaries of the project; the financing of the project; the governance of the project; the expected target; the temporal dimension of the project, possibly articulated in phases