Industrial Policy and Artisan Firms in Italy, 1945-1981

Giuseppe Maria Longoni (giuseppe.longoni@unimi.it) and Alberto Rinaldi

Center for Economic Research (RECent) from University of Modena and Reggio E., Dept. of Economics "Marco Biagi"

Abstract: This paper shows that after the Second World War the Italian state carried out an artisanship policy (that is, for the smallest firms) of an extent that was unparalleled in Europe. This policy was based on the provision, on the one hand, of lower tax and employers' contributions and welfare benefits at reduced premiums and, on the other hand, of 'substitutive factors': soft loans, services and promotional initiatives by state agencies. Such an artisan policy played a twofold role: partly 'defensive', protecting a segment of marginal firms, and partly 'proactive', prompting modernisation and innovation of more promising firms. The latter were clustered especially in the industrial district of the centre and north-easte of the country, whose development turned out to be boosted to a significant extent by state intervention.

Keywords: Italy; Industrial districts; Artisan firms; Indsutrial Policy (search for similar items in EconPapers)
JEL-codes: N24 N44 O25 O38 (search for similar items in EconPapers)
Pages: pages 27
Date: 2008-10
New Economics Papers: this item is included in nep-his
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