Industrial Policy and Artisan Firms in Italy 1945-1971

This paper shows that after the Second World War the Italian State carried out an artisanship policy of an extent that was unparalleled in Europe. This policy was based on the provision, on the one hand, of lower tax and employers' contributions and welfare benefits at reduced premiums and, on the other, hand, of 'substitutive factors': soft loans, services and promotional initiatives by state agencies. Such an artisan policy played a twofold role: partly 'defensive', protecting a segment of marginal firms, and partly 'proactive', prompting the modernisation and innovation of more promising firms.