CSIL working paper series features a new contributing by Massimo Florio and Raffaele Articolo. Their new paper investigates the role of CBA in the decision-making process of EU-27 member states.
While the role of CBA at the EU decision-making level is well known and analysed, there is a gap in the analysis of the practices of the different member states in the use of this appraisal tool. The study is based on a survey sent to EU-27 country experts from public sector, private sector and academia. It investigates various aspects related to CBA, such as the legal requirements behind it, its preparation stage, the roles and responsibilities of the actors performing the study and its overall impact on the decision-making process. The analysis of the institutional framework governing CBA is fundamental because it influences the way it is conducted, its reliability and potential to improve the decision-making processes. The survey responses show the significant role of CBA within the EU-27. In most countries, there is a legal requirement to conduct CBA, and it is typically conducted at the pre-feasibility stage when project alternatives are still under consideration. All EU-27 countries dispose of guidelines to conduct CBA, and most of the countries’ experts reported an impact of CBA on the efficiency and effectiveness of projects under assessment. The results also reveal that EU-27 countries lack a consistent institutional framework for determining who conducts CBA, posing a risk of varying study quality. Additionally, they reported not regularly conducting ex-post CBA, representing a missed opportunity for policy learning purposes.
Articolo R, Florio M (2023), “CBA in decision-making processes of EU-27”, Working Papers 2023/01, CSIL.
CSIL researchers Jessica Catalano and Francesco Giffoni have authored a new publication in the Journal of Technology Transfer, together with Paolo Castelnovo and Matteo Landoni from the University of Milan and the University of Insubria.
Castelnovo, P., Catalano, G., Giffoni, F., Landoni, M., The outcomes of public procurements: an empirical analysis of the Italian space industry. J Technol Transf (2023). https://doi.org/10.1007/s10961-023-10038-6
Their research looks at the relationship between public procurement and supplier firms in the Italian space industry. The paper studies the direct and indirect mechanisms through which public procurement exerts its influence, shedding light on how it shapes firms’ performance. This research paper is the result of a collaboration between the Italian Space Agency (ASI) and the University of Milan, spanning from 2018 to 2021. Titled “Cost-benefit analysis of public policies in the space sector,” the project was coordinated by Professor Massimo Florio.
In a bid to comprehend the multifaceted impact of public procurement on the Italian space industry, the research team employed a combination of surveys and qualitative interviews, to explored the dynamics at play. Their findings highlightes a dual outcome for firms engaged in space procurement: “intermediate outcomes” and “final outcomes”. The former encompass critical elements such as learning, collateral innovation, and market penetration. These serve as essential building blocks for supplier firms, acting as a catalyst for their growth and development. The latter, on the other hand, encompass tangible measures of success, including profit and sales, business development, and employment growth. The research highlighted how “intermediate outcomes” play a vital role in mediating the impact of procurement on “final outcomes.”
The study underscores the crucial role that public procurement plays in fostering innovation, driving economic growth, and nurturing the space industry.
Read the full paper in the Journal of Technology Transfer (2023) for an in-depth exploration of these findings.
The Italian kitchen furniture exports recorded a +15% growth last year, gaining additional market share in Europe, Asia, and the USA, with potential for further development in the upper-end market.
CSIL Market Research Unit found that the European market for kitchen furniture held steady in size throughout 2022 (experiencing a significant price growth with a decrease in kitchen sales volume of approximately 2%, equivalent to 7 million units sold). Considering the strong growth in 2021, geopolitical tensions in Eastern Europe, inflation rates, and the consequent risk of economic slowdown, this is not a bad result overall (CSIL's analysis are based on Eurostat data, preliminary figures for 2022).
A recent article featuring CSIL Report on the Italian market for kitchen furniture on the specialised magazine Ambiente Cucina (in Italian) highlights how Italian kitchen furniture exports grew by about 15%, less than the +20% increase achieved by Spain, which, however, remains a relatively minor player in the global trading scene. Nevertheless, it exceeded the significant +9% growth in exports from Germany (the leading global exporter). Imports have increased by over 20% in France and the United Kingdom.
Italian kitchen furniture exports are mainly focused on the medium and high-end segments. Luxury companies like Boffi and Poliform operate with substantial volumes and mid-range market leaders with high-end offerings like Veneta Cucine and Scavolini. In 2022, Italian kitchen furniture exports surpassed one billion Eur, with France being the primary market for Italian kitchens and the United States coming in second place with a strong increase in demand.
Find out more on CSIL Report - The Italian market for kitchen furniture, edition March 2023.
Photo credit: Worldfurnitureonline 2023.
CSIL researchers Julie Pellegrin and Louis Colnot contributed to a book titled “Territorial Innovation in Less Developed Regions Governance, Technologies, and Sustainability”, edited by Filipe Teles, Carlos Rodrigues, Fernando Ramos and Anabela Botelho and published by Palgrave.
Their chapter, titled “Digitalisation in a Multilevel Governance Context: The Case of Cohesion Policy”, focuses on how public policies can impact digitalisation, namely at the regional level and a multilevel governance dynamic, suggesting, with basis on the analysis of EU cohesion policy, the high relevance of tools favouring collaborative governance.
During Salone del Mobile.Milano, Milan’s Furniture Fair that brings hundreds of exhibitors and thousands of products to Milan every year, CSIL organises a study tour for a selected group of team members. The tour includes visits to furniture and lighting companies and discussions with industry experts, providing an excellent opportunity to gain insight into the furniture market and the latest trends in design and production.
CSIL founding member Aurelio Volpe conducts the tour and shares his experience as a privileged observer of the lighting and furniture market for over 40 years. The team discusses trends and strategies with actors at the frontline of innovation and interaction. Participants learn about the latest industry developments, enabling them to understand better the market and potential opportunities in such a significant sector for the wider economy. For example, CSIL’s preliminary estimates at the end of 2022 for international furniture trade amounted to around USD 187 billion; European furniture consumption in 2022 reached nearly EUR 120 billion.
Entrepreneurs share their first-hand experiences facing global challenges and transforming small local enterprises into global players dedicated to export, setting trends and leading their market sector. Investing in technology and creating strong partnerships allows entrepreneurs to take advantage of new opportunities and markets, leading to success and growth.
The tour allows for deepening all stages of the value chain: from investigating the cost and benefits of different materials, and facing production challenges, to selling and distribution, particularly online, a key channel for the sector. According to CSIL’s latest observatory (E-commerce for the furniture industry), furniture sold online is worth about USD 96 billion, representing about 11% of worldwide furniture consumption, while it was only 1% back in 2000. Online sales are also significant for lighting, the focus Euroluce, the biennial event dedicated to the design dimension of light. In 2021, CSIL estimated that the e-commerce market for lighting fixtures worldwide accounted for over 7% of total lighting fixtures sales, worth about USD 9.1 billion at retail prices.
For CSIL, a sectoral outlook and an understanding of market dynamics are of key importance. From 1980, when we started studying Brianza’s thriving SME industrial context, our research institute’s activities now extend worldwide and in a wide range of sectors.
Over the years, sustainability, circularity and reuse have gained much importance on the agenda of Salone del Mobile. The fair and the tour allow exploration of the relationship between market trends, beautiful ideas to reduce waste and energy consumption, and creative solutions to adapt the spaces we live to our needs.
Read more:
E-commerce for the furniture industry
E-Commerce for the Lighting Industry
The European Commission has published its Staff Working Document (SWD) and a thread of Twitter posts on the evaluation of Research and Technological Development (RTD) infrastructures and activities supported by the European Regional Development Fund (ERDF) in the period 2007-2013. The document reports on the main findings of the full evaluation published in December 2021, which CSIL conducted in 2020-2021.
In its recent study, “Top 200 Furniture Manufacturers Worldwide”, CSIL listed the largest companies in terms of furniture turnover. This group of companies produces a total turnover of around USD 180 billion, of which nearly USD 120 billion, according to CSIL estimates, is related specifically to the furniture sector.
The concentration ratio of the Top 200 furniture manufacturers in the world furniture industry has continued to increase in the last years, reaching more than 20% of world furniture production. The Top 200 are spread all over the world. They have headquarters in 30 countries. Regarding furniture turnover, top companies from Asia and the Pacific account for nearly 40% of the total furniture turnover generated by the top 200 companies. European and Americas companies account for 30% each.
The total turnover of the Top 200 furniture manufacturers increased by over 30% from 2017 to 2022 (more than compensated for the pre-pandemic level). The trend indicates that the growth of the Top 200 companies was higher than that of the sector in terms of sales. In 2020, the decrease in sales of the Top 200 manufacturers had been contained compared to the world furniture production, driven by larger financial capabilities that allowed leading companies to quickly re-align business strategies, implement new sales channels (e.g. online), and reposition their supply chain.
Preliminary results show that in 2022, the Top 200 companies maintained the same level as in 2021, whereas world furniture production decreased by 3%. Their performances differ accordingly to the geographical areas and the furniture segments. Asian manufacturers have grown impressively over the last five years. European players have shown promising results, particularly in 2021 (surpassing the pre-pandemic level). North American manufacturers experienced significant development in 2019 and stabilized in 2021.
Strategies of delocalization and differentiation of companies’ manufacturing footprint have been accelerated over the last few years, driven by an increasing need to contain logistic and transport costs, reducing the time-to-market. About half of the Top 200 companies have manufacturing activities outside their headquarters country. Companies that mostly delocalize part of their production abroad have headquarters in North America, followed by Asian manufacturers and European companies.
About 80 M&A operations have been identified among the Top 200 furniture companies since the beginning of 2019, averaging 20 significant operations per year. American and Italian companies were the most active in recent years, concluding around 40 M&A operations among the sample of the Top 200 companies, followed by companies headquartered in China and the United Kingdom.
CSIL constantly updates a comprehensive set of companies’ information, including financial figures, employment, export sales, and product portfolio, supported by different sources of information: an extensive database of companies that includes historical data on main financial indicators; annual reports of companies quoted on the stock exchange; specialist sector press, companies’ websites, and press statements; CSIL’s field research, including online surveys and direct interviews conducted during the year.
Read the full article and research report on worldfurnitureonline.com
CSIL experts will present the new study “Mapping of Long-term Public and Private Investments in the Development of Covid-19 Vaccines” at the European Parliament on Thursday, 23 March 2023, 16:30-18:30 (Spinelli 1E2).
The study was commissioned to CSIL by the European Parliament’s COVI committee. The research provides a mapping of funds for vaccine R&D and for the expansion of the production capacity of COVID-19 vaccines, with a focus on the EU. It assesses the necessity for continuing public support to R&D on vaccines. After highlighting current market failures, the study discusses possible new incentive mechanisms in the public interest for vaccine R&D designed to grant equity and accessibility and rewards in line with risks.
The presentation will be web-streamed live and will be followed by a questions and answers session.
We are looking for a Junior Analyst with a good quantitative background and excellent writing skills. He/she will mainly work in regional, industrial, research and innovation policies.
He/she is expected to contribute to project-related work by supporting the analysis with solid empirical evidence. He/she will be asked to play a proactive role in the team and apply different analytical tools with the ultimate goal of advising businesses, governments and international organisations on economic and policy decisions.
Previous work experience (1-3 years) in an analytical role in other research centres, public administration, universities, and/or international organisations would be an asset.
Analytical skills, Writing skills, Accuracy and attention to detail, Teamwork and collaborative spirit, Problem-solving attitude, and Curiosity.
30/03/2023
CSIL welcomes the applications of all qualified candidates irrespective of their nationality. The team’s primary job location is in Milan, but the possibility of remote work can be discussed.
Please, email your CV and cover letter to careers@csilmilano.com or submit them using the website form.
Registrations for the X edition of the Milan Summer School in Cost-Benefit Analysis are now OPEN. The School will be held in Milan on 18, 19 and 20 September 2023.
Building on our experience, we have refocused, updated and expanded the programme and approach. All sessions will be interactive and hands-on. Lectures on principles and methods of CBA and sectoral applications feature exercises on real cases and interactive tools to practice lessons learnt. With the support of lecturers, participants will deepen their understanding of how to apply CBA in relevant workplace scenarios.
Lecturers are experts – academics and consultants - with longstanding experience designing, implementing and reviewing CBA of infrastructure projects.
A dedicated webpage contains information about the Summer School's programme, structure, fees, and logistics. The registration form is also available online.
THE APPLICATION SUBMISSION DEADLINE IS ON 31 MAY 2023.
An early bird fee is available for applications sent before 30 MARCH 2023.
ORGANISING COMMITTEE
Claudia Santoro (CSIL), Jessica Catalano (University of Milan and CSIL)
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