News Analysis: Italy making headway on innovation, but challenges remain

Italy has been making more than its share of headlines in the digital world in recent weeks. But experts say the country will have a lot of work to do before it becomes a relevant player in the sector, as the government says it would like to see happen.

The latest news is that Diego Piacentini, a senior vice-president from online retailing giant Amazon.com Inc. and a native of Italy, would take a two-year leave of absence to head Italy's newly created Italian digital technology office.

Paolo Barberis, a top Renzi's advisor for innovation, said Piacentini would help "build a digital country."

Before that, technology giant Cisco Systems Inc. would spend 100 million U.S. dollars on a series of strategic investments in Italy, and computer and iPhone maker Apple Inc. announced intentions to open what would be its first European application development center in Naples at some point in the future.

"This government sees the digital divide as an important challenge," Marianna Madia, Italy's minister of public administration and simplification, told Xinhua.

"Technological innovation is not just one of the tools to make the government more efficient, but rather 'the instrument' to help create a competitive and democratic state," said the minister.

While most observers see recent developments as positive steps for Italy, experts say there is a long way to go.

"The idea of improving digital infrastructure and innovation in Italy is a very good one," Maurizio Sobrero, a professor of innovation management at the University of Bologna, said in an interview. "But right now what Italy has is a scattered set of elements. It's not really a cohesive plan."

Expert observers and business leaders in high-tech fields have told Xinhua that innovation in Italy is slowed, in part, by an oppressive bureaucracy and high tax rates. The two-year-old government of Matteo Renzi says it is working to reduce both.

According to Vincenzo Zeno-Zencovich, a law professor with Roma Tre University and president of Italy's Institute for the Study of Innovation, another step the government could take is giving tech companies real-time access to aggregate data on consumer spending, traffic or health care trends.

"Access to data is a low-cost way to help companies innovate to respond to changing trends," Zeno-Zencovich said. "Most of this data is in the hands of the government, which is a great opportunity for the government to promote data-driven innovation."

For Madia, the minister, the challenges are clear.

"In recent months, we have done a lot, but we know there is still much work to be done," Madia said.

"The first effects are already visible," the minister went on, referring to initiatives allowing companies and citizens to access government services online. She said more government-sponsored innovations are in the works. Endit