Abstract

This study identifies the key characteristics of Italian manufacturing enterprises responsible for their engagement in innovation activities, and then proposes lines of policy intervention able to boost their innovation potential. We use the data from the Italian part of the Community Innovation Survey 2010. The analysis is done separately for small, medium and large firms, and this allows us to figure out factors particularly relevant for small enterprises making the bulk of the Italian manufacturing sector. Improving their innovation potential is expected to allow overcoming the "dwarfism" of Italian industrial structure, as well as increasing the weight of manufacturing in the Italian economy.