The Sicilian economy: its competitiveness, structural composition, and evolution

Schilirò, Daniele (2025): The Sicilian economy: its competitiveness, structural composition, and evolution. Published in: International Journal of Business Management and Economic Research , Vol. 16, No. 2 (10 May 2025): pp. 2569-2575.

Abstract

This article aims to analyze the competitive capacity of the Sicilian production system in a region that has historically experienced delayed development. The essay also examines the structure of the Sicilian economy and its evolution over time, highlighting key factors that shed light on its current dynamics. In particular, it focuses on the recent boost in entrepreneurial activity, with start-ups emerging across various sectors—signaling positive trends in production, innovation, and development opportunities. It also addresses the growth of the tourism sector, despite its limitations. Furthermore, the article focuses on the experience of productive systems that have influenced regional policy towards small and medium-sized enterprises across various economic sectors, promoting the creation of business networks. Finally, it discusses the policies needed to enhance competitiveness and foster growth in Sicily. The essay first argues that innovation is the most critical driver of competitiveness, as it enhances total factor productivity. Second, it identifies investment in knowledge as the optimal strategy for improving the efficiency of production factors and as a cornerstone for long-term growth and development. Furthermore, the essay contends that institutions must foster competitiveness and growth through a regulatory framework that is simple, clear, and less bureaucratic. This is especially important in regions that have historically allocated substantial public resources yet achieved only modest outcomes in income and employment growth. The paper specifically emphasizes the need for significant public investment in infrastructure, education and training, and research. Equally important are private investments—not only to expand the production base but, more importantly, to improve it qualitatively through the adoption of new digital technologies.

• Item Type: MPRA Paper
• Language: English
• Keywords: Competitiveness; Sicilian economy; productive districts; innovation; digital technologies; institutions
• Subjects: J - Labor and Demographic Economics > J0 - General > J00 - General; L - Industrial Organization > L0 - General; L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L23 - Organization of Production; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development; O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics > R11 - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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