Milan: a rich region Province of Milan = 3.7 million inhabitants Italy s richest urban agglomeration & one of the wealthy OECD metro regions

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1 The case of Milan

2 Milan: a rich region Province of Milan = 3.7 million inhabitants Italy s richest urban agglomeration & one of the wealthy OECD metro regions Milan Province Highest GDP per capita 29 Bolzano-Bozen Lombardy Belluno Sondrio 21 Verbano FRIULI-VENEZIA GIULIA Trento Lecco 19 Pordenone Varese Bergamo 17 Como Gorizia Valle d'aosta Biella VENETO 15 LOMBARDIA Treviso Brescia Novara Trieste Vicenza Milano Vercelli Verona 14 Venezia Padova Cremona Lodi PIEMONTE 12 Torino Pavia Mantova Italy 10 Rovigo Piacenza Alessandria 189 municipalities Asti Modena 8 Ferrara Parma Reggio Emilia 6 Bologna EMILIA-ROMAGNA Cuneo LIGURIA Genova Savona 4 Ravenna Imperia La Massa-Carrara Spezia Udine Milan Lucca Forli Pistoia Rimini Prato 0 Firenze TOSCANA Arenzzo MARCHE Pisa Pesaro e Urbino Ancona ITALY Low unemployment

3 with a strong industrial economy Large industrial companies and closely integrated SMEs Well-educated & young labour market (32% of labour force is years old) Major trade partner in Europe Good international accessibility > 40% of FDI inflows Dynamic entrepreneurship (1 out of 10 inhabitants) > 10% of national value-added

4 but global competition is pushing for rapid adjustment Italy lost global export market shares ( ) GDP per capita: 35th out of 78 OECD metro regions Bolzano-Bozen Bolzano-Bozen % +3.9% +26.7% Udine Belluno FRIULI-VENEZIA GIULIA Sondrio Belluno Sondrio Verbano FRIULI-VENEZIA GIULIA Lecco Pordenone Udine Verbano Trento Como Pordenone Varese Lecco Bergamo VENETO Como Gorizia Varese Gorizia Valle d'aosta Biella Biella Valle d'aosta Bergamo VENETO Treviso LOMBARDIA Treviso Novara Brescia Vicenza Trieste Trieste Novara Vicenza LOMBARDIA Milano Brescia Venezia Vercelli Milano Verona Verona Venezia Vercelli Padova Cremona Lodi PIEMONTE Lodi Padova Torino PIEMONTE Cremona Torino Pavia Mantova Pavia Mantova Rovigo Rovigo Piacenza Asti Alessandria Asti Alessandria Piacenza Modena Ferrara Parma Parma EMILIA-ROMAGNA Ferrara Reggio Reggio Emilia Emilia Bologna EMILIA-ROMAGNA Cuneo LIGURIA LIGURIA Genova Modena Cuneo Bologna Genova Savona Savona Ravenna Ravenna La Massa-Carrara Spezia La Spezia Firms became smaller Patents in high-tech sectors stagnated Catalonia Lombardy Rhône-Alpes Baden-Württemberg London (inner + outer) Paris Ile de France Imperia Imperia Low wages Forli Rimini Lucca Pistoia Prato Lucca Forli Pistoia Rimini Prato Firenze TOSCANA Arenzzo MARCHE TOSCANA Pisa Pesaro e Urbino Ancona Firenze Pesaro e Urbino MARCHE Arenzzo Pisa Ancona Sw eden Denmark Livorno Germany Perugia Perugia France UMBRIA UMBRIA UK Austria Luxemburg Netherlands EU15 Finland Italy Spain Ireland Greece Portugal Milan Frankfurt 100 High cost of living Berlin Paris Rome 50 Lyon Barcelona Madrid

5 Capitalise on complementarity between industrial fabric & advanced functions high-level services in the core Manufacturing periphery Map of industrial districts

6 Towards a strategic powerhouse? Creating «brokers» between manufacturing firms & business services Investing in breakthrough innovation e.g. Øresund University e.g. «Milano Metropoli» Agency metadistrict policy (biotech, nanotech, new materials, ICT, fashion & design) Exploiting the «Milan brand» (e.g. fashion & design) Made in Italy

7 Connectivity & liveability bottlenecks Prestigious High standing Medium standing Low standing Housing shortage Increasing number of commuters by public transportation and private cars Transportation deadlocks

8 Need for governance solutions Bolzano-Bozen Verbano Como Sondrio Trento Belluno FRIULI-VENEZIA GIULIA Pordenone Udine Valle d'aosta Torino Lecco Varese Biella Bergamo Novara LOMBARDIA Brescia Milano Verona Vercelli Lodi PIEMONTE Cremona Pavia Mantova VENETO Treviso Vicenza Padova Rovigo Venezia Gorizia Trieste What governance to support national spillovers? Cuneo Asti Alessandria LIGURIA Genova Savona Piacenza EMILIA-ROMAGNA Ferrara Parma Reggio Emilia Modena Bologna Ravenna La Spezia Imperia Lucca Pistoia Prato Forli Rimini TOSCANA Pisa Firenze Arenzzo Pesaro e Urbino MARCHE Ancona Metropolitan mobility needs? Perugia UMBRIA the highest level of government regions a metropolitan government (1990 law introduced «città metropolitana») a metropolitan transportation authority/consortium provinces municipalities

9 Moving forward Flagship projects Turin Bilbao Seoul What image for Milan? Creating a «think tank» Building a «Milan community» with the national government?

10 Issues for discussion What is the role of the national government: to enhance national spillovers of public goods generated in large metropolitan regions? to speed up the innovation process in large metropolitan regions in the globalisation context? to help establish more efficient governance mechanisms in large metropolitan regions?

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