I young talents are looking for paths of professional growth and responsibility. Which can be more easily offered within medium to large or large companies. Which, however, are less present in the Italian production system.
The analysis conducted by North East Foundation confirms a well-known fact: the low presence of larger companies throughout the North. Not so much in terms of numbers, which is physiological, but in terms of impact on employment. But there are shades of gray: companies with 250 or more employees have a much greater relevance in the Northwest (25,6% of employed people) compared to the North-East (22,6%). Within which the distance between stands out Emilia-Romagna (25,2%) and Veneto (20,4%); a gap that helps to explain, more than the notoriety of the brands, the greater attraction of the Emilia-Romagna region.
However, the evolution in the decade preceding the pandemic suggests a gradual process of concentration, with the increase in the weight of companies with at least 250 employees. Both numerically and by employment share. And here Veneto does better than Emilia-Romagna: +23,5% against +19,8%. The greatest exploit, however, is Trentino-Alto Adige: +69,2%; even if the weight of the major companies is featherweight (17,3%).
In terms of growth and productivity, the North-East did much better than the North-West: +11,4% turnover in 2011-19, against 3,9%. Again we find Trentino-Alto Adige (+26,6%) in the lead, followed by Friuli-Venezia Giulia (+16,6%) and Emilia-Romagna (+11,1%). Veneto is behind and behind (+7,9%).
Also the subdivision of manufacturing companies by technology level used brings out a further attractive factor for young people in Emilia-Romagna, where 2% of companies are in high-tech sectors and 14,5% in medium-high technology ones, against 1,4% and 12,2% of Veneto, respectively.
Conversely, Veneto exceeds Emilia-Romagna for the presence of medium-sized industrial enterprises, those of the fourth capitalism born from the evolution of industrial districts. The Mediobanca-Unioncamere data leave no doubts: 84 thousand employees in the former, with a +1,5% in 2019 compared to 2011, against 60 thousand and -12,8%. Even if it should be remembered that from the group of medium-sized enterprises one can exit upwards or downwards, and judging by the other numbers, the Emilia-Romagna people have taken the high road. Mediobanca-Unioncamere will present the next report in a few days, which will have a chapter dedicated precisely to attractiveness.
The photograph of the production system
The composition by company size of the entrepreneurial systems in the regions of Northern Italy does not show significant differences, primarily between the North-East and the North-West, where it is only slightly higher the share of micro enterprises, ie under 10 employees, and slightly lower than that of small companies between 10 and 49 employees. Looking at the northeastern regions, Veneto, Emilia-Romagna and Friuli-Venezia Giulia show identical shares of the different size classes. The exception is partly Trentino-Alto Adige where the percentage of very small companies is smaller. Everywhere large companies are a rarity. Compared to Emilia-Romagna, Veneto presents in absolute values a number of enterprises greater than 25 thousand units.
Using the data on employees by size class the differences appear more significant: in the North-West the largest companies employ 26,5% of the workers, in the North-East 22,6%. Furthermore, the figure for Emilia-Romagna significantly exceeds that of the Veneto: 25,8% compared to 20,4%.
Between 2011 and 2019, a period marked by the sovereign debt crisis, both the North-East and the North-West had a overall reduction in the number of firms, concentrated among micro-companies, particularly significant in Emilia-Romagna (-19.969 units). Conversely, over 10 employees in each region recorded growth in absolute terms: 3.220 companies in the North-East and 3.371 in the North-West. In Veneto, companies with more than 250 employees increased by 70 units, compared to 55 in Emilia-Romagna: at the end of 2019, the first region had 417 companies with over 250 employees, the second 471, with a double share, although still tiny.
Growth in companies with more than 250 employees obviously also affects employees: the figure is over 30% in the North-West and over 20% in the North-East.
The presence and weight of services is growing everywhere
In sectoral terms, between 2011 and 2019, the North-West and North-East – and their regions – displayed similar dynamics: construction, trade, transport and warehousing, and accommodation/catering suffered reductions close to 10%. Industry in the strict sense also fell back, but to a lesser extent. Instead, they recorded growth KIBS sector, i.e. services with a high technological and innovative content, and other services.
In terms of sectoral composition, the overall weight of the industrial and commercial sectors is reduced in favor of the services sector.
Within the Northeast, there is a dynamic of wider growth in Trentino-Alto Adige compared to other contexts. In particular, the reduction in terms of enterprises registered in the trade in Veneto, Friuli-Venezia Giulia and Emilia-Romagna is significant with percentages exceeding 17%. Equally important was the contraction in the accommodation and catering sector which lost 16,9% in Friuli-Venezia Giulia, 15,9% in Emilia-Romagna and 10,5% in Veneto. The KIBS sector is growing in almost every area, with a maximum of +8,1% recorded in Veneto, while Emilia stops at 4,5%. Their weight on total assets grows everywhere against, conversely, a reduction in construction and industry in the strict sense.
The northeastern regions and their distribution have a higher share of low-tech manufacturing companiescompared to the North West. The only exception is Emilia-Romagna which, with a figure of 54,4%, is in line with that of the western division, as is the case for high-tech companies equal to 2%. The region with the lowest presence of medium-high and high technology activities is Trentino-Alto Adige.
Performance of production systems: Veneto is growing less than other regions
Between 2011 and 2019 the Northeast recorded a business turnover growth of more than 11 points percentages compared to a 3,9% increase in the North-West. Among the northeastern regions, the trend was more significant in Trentino-Alto Adige (26,6%) and in Friuli-Venezia Giulia (16,6%), while the Emilian figure is in line with that of the division. Below 8% the dynamics of Veneto whose contribution to the total turnover is equal to 41%, equal to that of Emilia-Romagna although the latter weighs less in terms of enterprises (39% Emilia and 42% Veneto).
The dynamics of the added value per employee in every region, with peaks in Trentino-Alto Adige (16,3%) and Emilia-Romagna (14,6%). However, the difference in the figure at the end of 2019 in the two divisions is significant: it stops at 51,6 thousand euros in the North-east, while it reaches 56,3 thousand euros in the North-west, showing better labor productivity.
Business innovation: Veneto innovates a lot, Emilia-Romagna spends more
The share of companies with more than 10 employees with innovative activities is very similar between the North-East and the North-West: 60,7% in the first breakdown and 58,4% in the second. Among the northeastern regions, Veneto records the record with 62,5% of innovative businesses, a record it holds together with Emilia-Romagna also with regard to product and process innovations involving 55,4% of businesses. This innovation is achieved with collaboration agreements for 30,8% of Trentino companies, but only for 25,7% of those in Veneto.
Finally, the data on spending on innovation in the North-East, 44,8% is attributable to Emilia-Romagna, although the weight of the region in terms of enterprises out of the total distribution is 37,2%. This significant commitment is evident in the data on expenditure per employee which is equal to 10.600 euros, compared to 8.100 in the Veneto region and 9.300 in the North-West.
The multinationals: significant weight of those of the servicesi
Another interesting data to compare the regions is the presence of multinationals. Both in the North-East and in the North-West the presence is significant, with a clear prevalence of those active in the services sector.
Also in this case the numerical relevance is much more significant in the North-west, with a concentration of approx 3⁄4 of local units and employees in Lombardy, where the importance of the services sector is confirmed, especially among foreign multinationals, with shares above 80%.
In terms of employees, it is confirmed for the foreign multinationals in all territories a more significant number as regards the services sector, although the industry shows a greater employment of people. This datum is even more relevant with regard to Italian multinationals where, compared to a lower number of local units in industry, the number of employees in this sector is significantly higher.
The medium-sized industrial enterprises decrease, but the turnover increases
The most recent data from Mediobanca and Istituto Tagliacarne make it possible to reconstruct the presence and characteristics of medium-sized industrial companies between 2011 and 20191. At the end of 2019, the 77,3% of medium-sized Italian industries, confirming the data of 2011. In this period of time, in almost all the territories considered there was a contraction of the purchased items analysed, which in Emilia-Romagna alone recorded a loss of 11,1%. Conversely, Veneto, where 51,1% of medium-sized industrial companies in Northeast Italy is present, experienced a slight growth of 2,2%.
Dynamics entirely in line with what has been seen for companies, are also found for their employees. Northeast and Northwest together occupy 77% of the national total which in percentage values compared to 2011 loses 3,5%. Also in this case the greatest contraction concerns Emilia-Romagna (-12,8%), while Veneto grows by 1,5%.
The reduction in the number of medium-sized industrial enterprises does not translate into a decrease in turnover between 2011 and 2019. In fact, in Italy there is a growth of 4,3% and in the North-West of 3,9%. The Northeastern turnover remains almost constant (+0,4%), but internally the dynamics are highly diversified: Trentino-Alto Adige and Emilia-Romagna lose respectively 10,3% and 8,6%, while Veneto grows by 9,2% and Friuli-Venezia Giulia by 6,5%. At the end of 2019, the weight of the Northeast turnover on the total Italy decreased.
The entire sector of medium-sized industrial enterprises confirms its ability to create opportunities for growth gods in foreign markets. Despite the decrease in companies, between 2011 and 2019 foreign turnover grew by 16,6% in Italy, by 16,1% in the North-West and by 13,6% in the North-East. Among the regions, Veneto and Friuli-Venezia Giulia show the best results both in terms of variation in the period considered, and in terms of the share of foreign turnover on the total.
