Made in Italy Vs. Fast Followers PNR 285 paganini non ripete eng.webp

Made in Italy Vs Fast Followers PNR 285

Italy continues to suffer from weak property protection, a factor that discourages investment and slows innovation, weakening the competitiveness of our companies. An ecosystem of small and medium-sized enterprises (SMEs) focused on the originality, uniqueness, and quality of the Made in Italy brand requires stronger protection of property rights, especially intellectual property

Our ecosystem urgently needs these protections to encourage investment and innovation, enhance international competitiveness, and counter the grip of Fast Followers.

FOR COMPETITIVENESS AND INNOVATION

The recently published International Property Rights Index (IPRI) 2024 provides an updated overview of property protection on a global scale. The IPRI 2024 evaluates property rights protections across 125 countries, covering 93.4% of the world population and accounting for 97.5% of global GDP.

WHY IT MATTERS

This is an essential resource for policymakers and business leaders as it clearly illustrates how the three pillars of the property rights ecosystem – the legal and political environment, physical property rights, and intellectual property rights—are vital to attracting investment and strengthening institutions.

BAD NEWS

The 2024 report shows a slight 0.53% decline from the previous year, highlighting the struggle many countries face in maintaining adequate protections, a critical aspect of economic progress.

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BEST IN CLASS

Finland, Singapore, Denmark, the Netherlands, and New Zealand lead the IPRI 2024 rankings. These countries demonstrate how a strong legal and political framework fosters economic resilience and competitiveness, excelling in attracting investments, fostering new enterprises, and promoting innovation.

WORST IN CLASS

Conversely, countries like Venezuela, Yemen, Haiti, the Democratic Republic of the Congo, and Chad face significant challenges, including political instability and weak legal systems, which undermine property rights and severely limit economic and social development opportunities.

 

ITALY’S MEDIOCRE PERFORMANCE

Italy ranks 36th, significantly behind countries like Spain, Oman, and the UAE, and only slightly ahead of Eastern European countries and Greece within the EU27. This position does not reflect the ambitions or economic potential of the country, nor the innovative character of our businesses. We remain far from advanced economies that lead to technological innovation.

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HOWEVER…

When examining individual factors, such as the protection of patents, copyrights, and trademarks, Italy shows relatively better performance, approaching countries like Spain, though still lagging behind the Central and Northern European bloc.

THE REAL ISSUE…

Lies in physical property, particularly in access to credit (Banks???), and the weak application of the “rule of law.” Property protection laws exist, but their enforcement is lacking.

AGAINST FAST FOLLOWERS

In an era of complexity, where knowledge drives competitiveness through creativity and innovation, intellectual property protection is crucial to shield against Fast Follower economies

  • These systems, quick to copy, produce, and distribute at minimal cost, threaten the value of original products, especially in global markets where consumers, particularly the emerging middle class in developing countries, are drawn to more affordable alternatives.

STEPS TO IMPROVE
To ensure that Italian companies remain competitive and innovative, swift action is needed:

  • Strengthen the legal system and fight counterfeiting. The legal and judicial system must effectively protect intellectual property rights by reducing bureaucratic delays and expediting procedures. Intensifying the fight against counterfeiting is critical, particularly in key sectors such as food, fashion (often complacent!), and luxury, thus safeguarding innovation and the value of Italian brands.
  • Physical properties, including those illegally occupied, must be protected with prompt action to ensure respect for the law and legal certainty.
  • Cultivate a property protection culture starting from all school levels. Educational programs should include specific courses on intellectual and industrial property protection, not only in traditional fields such as engineering and business but also in humanities and the arts.
  • Train managers and entrepreneurs. Companies must educate their leaders and teams on the strategic management of intellectual property and the importance of patents, copyrights, and trademarks as tools for competitiveness.
  • Establish tax incentives and benefits for companies that invest in property protection. A tax system that rewards those who register patents and protect their innovations can stimulate more investment in R&D.
  • Future industrial plans must prioritize intellectual property as a key asset to be protected at both national and international levels, with particular attention to complex markets and Fast Followers like China.
  • Set up a network of “international sentinels” (embassies, consulates, chambers of commerce) to help Italian companies protect themselves from intellectual property violations in foreign markets and provide qualified legal advice.
  • Create a national legal defense fund to support Italian SMEs in international disputes over property rights violations. This tool could provide financial and legal assistance to those without sufficient resources.
  • Strengthen public-private collaboration to develop joint solutions for intellectual property protection, involving universities, research centers, and businesses in promoting patents and innovations.
  • Speed up the digitization of patent registration and consultation processes, aiming to streamline procedures and make them more accessible, reducing bureaucratic delays and costs.
  • Collaborate with international organizations such as the World Intellectual Property Organization (WIPO) to monitor and more effectively combat violations and develop new international protection standards.

MADE IN ITALY VS FAST FOLLOWERS

Italian SMEs, the backbone of our economic system, would be among the main beneficiaries. More effective protection would allow them to compete globally, encouraging investment and innovation while protecting their products and ideas not only from counterfeiting but also from Fast Follower economies and companies. Investing in intellectual property protection means equipping SMEs with the tools they need to grow and thrive in an increasingly competitive economic environment.

Made in Italy Vs. Fast Followers PNR 285

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