Business networks and industrial policies: The role of social capital

Abstract

The thesis aims to investigate the main reasons why companies establish business networks and how regional and national policies should encourage their formation as useful tools for achieving goals in the field of R&D and internationalization. Additionally, network schemes have proven crucial for addressing moments of crisis in the sector in which companies operate or during times of rapid change in a geopolitical context, as seen in the case of the Russo-Ukrainian war. The North-South divide that has affected the Italian peninsula for centuries is also evident in the study of the diffusion of business networks, and in particular, a comparison is made between two regions: Veneto and Sicily. The two regions share common characteristics such as the prevalence of an agriculture-linked economy, but with a notable difference: businesses located in Veneto have managed to "network." The region is now one of Italy's most dynamic economies, and in 2023, according to CGIA, it is the second region for GDP growth after Lombardy. The same cannot be said for Sicily; the island's economy has experienced years of backwardness due to various factors, not only economic but also attributable to the low level of infrastructure and the impact of regional policies on the territory. Looking deeper into the analysis and following what the academic literature on networks has examined, it turns out that the level of social capital in regions makes a difference. However, the consortium ETNA HI-TECH, born in Catania, has decided to focus on the IT sector for the promotion of research and development expanding nationally with 71 companies.