OECD Territorial Reviews Milan, Italy

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Milan has earned a high-profile reputation as a centre of advanced functions, in addition to being an international capital of fashion and design. However, both internal and external challenges are putting strains on Milan's aspiration to become a southern European and Mediterranean hub. On the internal front, Milan has grown from a successful industrial city into the core of a wider metropolitan region and a service platform for a significant share of northern Italy, thereby buttressing national competitiveness. Its capacity to act as a strategic powerhouse will be determined by the supply of adequate public goods and permanently updated services. On the external front, increasing global competition has revealed the limits of Milan's historical lead and the need to renew its comparative advantages. This review highlights Milan's potential to capitalise on its advanced services to bolster the regional innovation dynamics and to fuel national growth. It also points out that failure to accelerate the innovation process and to enhance the region's attractiveness as well as its capacity to implement flagship projects could prove costly. Finally, it calls for rapid metropolitan governance reforms to design and to implement a competitiveness strategy for the entire metropolitan region.The Territorial Review of Milan is integrated into a series of thematic reviews on metropolitan regions undertaken by the OECD Territorial Development Policy Committee. The overall aim of these case studies is to draw and disseminate horizontal policy recommendations for national governments.