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CIAO DATE: 4/5/2007
OECD Territorial Reviews: Milan, Italy
November 2006
Abstract
Milan ranks among wealthy OECD metropolitan regions and is often identified with the “Made in Italy” brand on the international arena, notably for fashion and design. Once a successful industrial city, Milan has grown into the core of a wider industrial metropolitan region that is home to more than 7 million people. Industrial activities still drive the region’s periphery while the centre of Milan is veering towards becoming a service platform for a significant share of northern Italy. Milan’s historical skills endowment and its advantageous geographic location could underpin its ambition to become a southern European and Mediterranean capital, supplying advanced services and new technologies while remaining an international capital of fashion and design.
However, both external and internal challenges are putting strains on Milan’s aspirations. On the external front, increasing global competition has revealed the limits of Milan’s historical lead and the need to support the renewal of its comparative advantages. On the internal front, public goods and services such as transportation have not kept pace with the continuous urban sprawl and the widening commuting flows across the metropolitan region. This has led to a deterioration of the region’s liveability, hampering the region’s buzz and capacity to attract knowledge workers.
Failure to accelerate the innovation process and to enhance the region’s attractiveness could prove costly. Milan needs to capitalise on its advanced services and functions to bolster regional innovation dynamics and to fuel national growth. Rapid metropolitan governance reforms will help design and implement a competitiveness strategy for the entire metropolitan region.
This Policy Brief looks at some of these challenges and at the possible solutions put forward in a new OECD Territorial Review of Milan.
