Development Profiles of the Italian Industrial System and Its Exports from the Unification of Italy to the Present: The Case of Mechanical Engineering

This chapter outlines the main phases of Italy’s industrialization process and analyzes the contribution of a particular manufacturing organizational structure, based on clusters and sectors of specialization. A case study is made of the mechanical engineering sector, the driving force behind “Made in Italy” manufacturing specializations. The first section gives a detailed historical analysis of the various industrialization phases and of Italian exports, from the unification of Italy to the present. Export competitiveness indicators are used to assess Italy’s performance internationally and show how it has been able to maintain a good share of world exports in spite of its aggressive Asian competitors (especially China). The second section analyzes the main production specializations which took hold after WWII. A description is provided of the characteristics and dynamics of Italy’s main sectors of specialization, which the Fondazione Edison has called the 4Fs: Fashion and cosmetics; Food and wine; Furniture and ceramic tiles; Fabricated metal products, machinery and transport equipment. The 4Fs constitute the pivotal macro-sectors of Italian industry in terms of employment, added value, exports and foreign trade balance. Finally, the last section of the chapter provides an appraisal of the industrial engineering sector in terms of dynamics and major successes, and describes how it evolved to become the propeller of “Made in Italy” products.