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RESEARCH IN ITALY - Innova

RESEARCH IN ITALY - Innova

06«The amount allocated

06«The amount allocated to R&D andinnovation by national and regionalprograms during the 2003-2008period was ¤ 14 billion »allocated to R&D and innovation for nationaland regional measures during the period2003-2008 was €14 billion. The year by yearanalysis of the funding shows that the budgetallocated for R&D almost triplicates from2007 - from €1.16 billion- to 2008 - €3.32 billionin 2008. Listed below, some of the mostimportant measures implemented by theItalian government to favor innovation andfinancially support research projects.industrial research projects and the establishmentof research centers or conversion and/or renovation of existing ones. A tender procedurehas opened in July of 2009 to award €55Million - €35 from this Fund and €20 Millionfrom the PON Research and Competitiveness-which have been specifically allocatedto finance R&D activities and projects carriedTable 10: New Support Measures for InnovationResearch Incentive Fund (FAC) – Amongthe most important funding programs administeredby the Ministry for University and Researchis the Research Incentive Fund, whichwas created with Legislative Decree 297/99and supports applied research programs forthe development of new products, productionprocesses and services and to promote existingtechnologies.Fondo per gli Investimenti della Ricerca diBase (FIRB) – The FIRB, administered byMiUR, is the main instrument for funding ofbasic research. The funding includes activitieswhich aim to widen the scope of scientific andtechnical knowledge not linked to immediateand specific commercial and industrial objectives,with the aim of enhancing Italy’s globalcompetitiveness.Fund for Scientific and Technological Research(FIRST) – Since its establishment in2007, MiUR allocated €900 Million for researchin high innovation industrial fields,including biotech.Technological Innovation Fund – Establishedby Law 46/82, the Fund seeks to financeprograms in high to medium-high techsectors, including Life Sciences, supportingIT 100IT 101IT 102IT 99New support initiatives introduced during the period July 2008 – July 2009Tax exemption on capitalgains from start-upsNational Fund forInnovationIncentives for theelimination or reductionof substances of veryhigh concernRisk capital fundfor SMEsThis measure is oriented to reinforce the role of the privateinvestors, especially the one of business angels. The measureestablishes that capital gains are exempted from personalincome taxes in compliance with the following: (i) shares arefrom young companies (no older than seven years), (ii) theyhave been owned by at least three years and (iii) the capitalgains obtained are re-invested in the next two years on youngstart ups that operate in the same sector as the first company.The National Fund for Innovation - €60 Million - has beencreated by the Ministry of Economic Development withthe objective to promote innovative projects based on theexploitation of the industrial property. The Fund’s main goalis to support SMEs and to reinforce Italian patents. It willact as an instrument to reduce investment risk for banks andfinancial intermediaries that participate in the funding/financing of innovative projects based in the valorisation anduse of patents.The Ministry for Economic Development will financeexperimental development projects, regarding product orprocess innovation with the objective to reduce or eliminatethe chemical products/substances that have been defined bythe EC as “of very high concern” - CE 1907/2006 (REACH).Resources amount to €120 Million.The Ministry for the Public Administration and Innovationhas launched the fund for risk capital for the SMEs locatedin the South of Italy. This is one of the measures included inthe e-government 2012 Plan and its objective is to favor theinflux of risk capital in southern Italy, as well as in Abruzzoand Molise regions. The fund - €160 Million- will support thecreation and development of SMEs involved in investmentprogrammes related with product and process innovationthrough the use of digital technologies.26

06«Ad-hoc research funds and taxbreaks are among the main incentivemechanisms fostering innovation »out by start-ups with less than 5 years of operations.Fondo per le Agevolazioni alla Ricerca(FAR) – Established by Decree 593/00, theFund aims to finance research projects submittedby companies, research centers, scienceparks and consortia. It covers up to 25%of the budget with a grant and 70% with a softloan for a sum note exceeding Euro 7,5 millions.Progetti di Ricerca di Interesse Nazionale(PRIN) – These projects are promoted by theMiUR (Minstry for University and the Research)and are aimed at supporting projectsof relevant interest to the country and beingsubmitted by universities.IT 108IT 109New support initiatives introduced during the period July 2008 – July 2009Strengthening patentsand intellectual property“Brain-return” measureFunds for research andinnovation in the energysector:Funds for innovationprojects in start-upsThe Italian Patents and Trademarks Office coordinates aproject for the re-qualification of national patents.The “anti-crisis decree” launched by the Italian governmentlast November 2008 foresees the introduction of fiscalincentives to attract Italian researchers living abroad. Thismeasure will try to counteract the brain-drain phenomenon,which is posing a serious threat in the Italian R&D system.The measure consists of a tax incentive - 10% tax applied topersonal income - during the first five years of fiscal residencein Italy as from 10 January 2009. The new plan for the researchin the energy sector - 2009-2011 - launched by the ItalianMinistry of Economic Development has allocated €210Million to research centers and universities to strengthen researchin the fields of production, rationalization and savingsof electricity, nuclear energy and environment protection.The Ministry for Economic Development finances innovationprojects proposed by start-up firms operating in medium andmedium-high sectors in the following areas: biotech, ICT, materials,robotics and energy. The funding allocated amountsto €55 Million.Italian Industry Association, Confindustria,is strongly supporting a tax exemption measurefor all companies investing in R&D. Thelobbying conducted by Confindustria willhopefully lead to a such an important fiscalmeasure in the near future.The table below lists some of the most relevantand recent initiatives introduced in supportof innovation in the last year.6.4 Regional support measuresIn Italy, both central and regional authoritiescan legislate, however a series of interventionsare the exclusive right of the central State.Within a division of competences, regionshave acquired more responsibility through achange in the Italian Republic’s Basic Law - L.3/2003- which enables them, along with theState, to adopt autonomous Science, Technologyand Innovation (STI) policies.Regional policies at national level, includingR/D activities as a critical component areadditional to ordinary budget and consist ofco-funding of structural funds -national andregional operational programs, PONs andPORs- and a fund for under-exploited areas,FAS -recently included by the 2007 FinancialLaw within a new larger “Fund for competitivenessand development”.The National Strategic framework for the regionalpolicy (QSN 2007-2013), which hasbeen approved by CIPE 23 in December 2006,includes actions of strategic coordinationbetween State and Regions and activities ofmonitoring, evaluation and strategic reporting.The QSN regional policy is promotedthrough “projects”, where a combination ofpolicy measures (incentives, regulations, infrastructures)contributes to the realization23CIPE: Inter-Ministry Committee for the EconomicPlanning27

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