This paper investigates the firm-level foundations of Italy’s international competitiveness by analysing both export performance and emerging potential for industrial growth. It is divided in two parts. Part 1 uses detailed microdata from Istat and other sources to identify key structural characteristics of Italian exporters. The analysis reveals persistent regional and sectoral asymmetries in export performance, with Northern regions leading in both volume and competitiveness. Part 2 then introduces the concept of latent competitive advantage, showing that High-Growth Firms (HGFs)—key drivers of employment growth—are more evenly distributed across the country and sectors, including in low-tech domains. The paper argues for a place- and sector-sensitive industrial policy that leverages both existing export strengths and emergent regional specialisations, enabling a more inclusive and strategic approach to Italy’s industrial transformation.

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