Institutional Sustainability of Industrial Policies for Inequalities Reduction at a Regional Level

The objective of this paper is to develop an analysis model of industrial policies based on the concept of institutional sustainability that should inform institutional policies in order to improve the productive structure of disadvantaged areas, thereby contributing to the reduction of inequalities. For this purpose, a two-step assessment model has been developed and tested in the case study of the Strategy for Inner Areas in Italy. Results showed an influence of the institutional system on market functioning and also the influence of a dominant culture in favor of institutional mechanisms, which are still affected by individualism and closure to collaborative market relationships. On the basis of this analysis, the main measures to be implemented in the inner areas have been identified, with the objective of stimulating the expansion of business opportunities, improving market functionality and thus reducing disadvantages in the industrial development.