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The brilliant growth of innovative start-ups seems to have stopped. It is difficult, at the moment, to say whether this is just a temporary setback or a sign of a structural change in the Italian innovation ecosystem, but the data is negative for the first time: in 2023, according to the «Annual Report to Parliament on the state of implementation of the policies in favor of start-ups and innovative SMEs” just published by the Ministry of Business and Made in Italy, the start-ups regularly registered in the special section of the Business Register have decreased by 3.6 percent. “A slight and physiological decline” the ministry defines it.
Start up monitorate dal 2018
However, the first setback since 2018, the first year of survey included in the Report, is striking. Since five years ago, when there were 9,758, the number of start-ups has gradually grown (+11.6% in 2019, +10% in 2020, +17.4% in 2021) with a clear deceleration in 2022: +1 .4% to 14,624. Then the decline in the first nine months of last year, which probably reflects a survival rate reduced by inflation, increases in raw material prices and credit restrictions as a reflection of the increase in rates.
Deductions for those who invest in start-ups and innovative SMEs
Furthermore, further reflection can also be done by interpreting the data on tax incentives and that relating to innovative SMEs. In the first case, the plus sign remains in the 2022 budget but, here too, there is a slowdown. In particular, the 50% tax deduction for natural persons who invest in the capital of innovative start-ups and SMEs (under the “de minimis” regime) totaled benefits of 146 million as of 6 December 2023 relating to 19,313 investments with a total value of 290 million euros. For deductions it is a +24% on an annual basis, practically a growth halved if compared to +51% in 2022 compared to 2021.
Innovative SMEs grow less
Even the race of innovative SMEs, which were also eligible for simplifications and incentives, is losing pace. In this case we are talking about a specific category, which represents the “evolutionary stage” of start-ups with an annual production value ceiling of 50 million (against 5 million) and with the obligation to certify the balance sheet. Innovative SMEs continue to record positive growth rates and, in 2022, they stood at 2,459 units. But this is an increase of 12.3%, much lower than the +22% and +31% of the previous two years.
Funds for start-ups
In the Report, the Minister of Business and Made in Italy, Adolfo Urso, highlights that «the government confirms its commitment to supporting an entrepreneurial environment in which brilliant ideas and innovation can grow». However, the start-up pipeline needs to be updated. On the financial side, 300 million were taken from the National Innovation Fund, therefore from the venture capital resources managed by Cdp Venture, to be transferred to the National Fund for Made in Italy. At the same time, however, the government is studying a specific corporate venture capital fund for start-ups active in artificial intelligence, with a public endowment of 200 million. On the regulatory side, however, the new competition law should accommodate a revision of the 2012 Start Up Act with reference to the requirements for access to special legislation.