The dynamics of innovation in an industrial ecosystem in crisis: the Italian case

Résumé:

This article analyzes the dynamics of innovation in the Italian automotive supply chain in the context of a deep industrial crisis, comparing survey evidence from 2024 and 2025. It shows that, despite worsening market conditions and the sharp contraction of vehicle production in Italy, the sector displays a degree of resilience greater than might be expected. The paper examines firms’ innovative behavior through research and development activities, patenting, product and process innovation, and responses to electrification and artificial intelligence. The findings reveal a widening gap between more advanced and internationally integrated firms, which continue to invest and adapt, and more fragile segments such as micro firms, Tier 3 suppliers, and aftermarket companies, which face greater difficulty in technological upgrading. Product innovation remains largely concentrated in incremental improvements and internal development, while investments increasingly shift toward electric vehicle-related modules, software, and charging infrastructure, although traditional internal combustion engine technologies still retain a central role. Process innovation is more widespread, but artificial intelligence adoption remains limited and mostly confined to support functions. The article argues that the Italian automotive supply chain is undergoing a gradual and uneven transition, marked by strong heterogeneity and a growing risk of exclusion for weaker firms. It concludes that targeted industrial policies are needed to support vulnerable segments, strengthen innovation capabilities, foster collaboration with research institutions, and accelerate the development of skills and technologies linked to electrification and digitalization.