Italy's R&D Paradox: Why Business Avoids Innovation

Italian businesses face a structural dilemma: political connections provide more predictable returns than risky R&D investments, explaining why the country lags significantly behind European peers in research spending. This dynamic traps Italian firms in low-value supply chain positions, reducing incentives to innovate further. Breaking this cycle requires understanding that Italy's R&D deficit is not a funding problem but a political-economic one.