Bruno Mafrici: Transition Plan 5.0 – A new step towards innovation and certainty of incentives

The Plan focuses on research and innovation as enabling factors for a transition towards a sustainable, human-centered, and resilient European industry

The Transition Plan 5.0, currently being developed by the Italian government, is shaping up to be an ambitious program aimed at evolving and expanding upon the previous Transition Plan 4.0, which was already a turning point for Italy towards an inclusive industrial policy focused on sustainability, innovation, and green investments.

The Minister for Enterprises and Made in Italy, Adolfo Urso, announced a few weeks ago the intention to allocate at least four billion euros of European resources to the new Plan, with the aim of supporting the ecological and digital transition of Italian companies. A significant portion of the necessary resources would come from the revision of the budget chapters of the National Recovery and Resilience Plan (PNRR) and the RepowerEu program. However, the government will have to await confirmation from the European Commission regarding the actual availability of resources.

Three fundamental aspects of the new Plan

Inspired by the paradigms of Industry 5.0, the Transition Plan 5.0 focuses on research and innovation as enabling factors for a transition towards a sustainable, human-centered, and resilient European industry. According to Bruno Mafrici, a senior advisor with experience in structured innovation paths within companies, “the intensity of support measures, the broadening of objectives, and the certainty of incentives are the three fundamental aspects of the new Transition Plan 5.0 promoted by the Government”.

The first aspect concerns increasing the effectiveness of incentives to further stimulate companies to invest in research, development, and technological innovation. The aim is to strengthen the competitiveness of companies and promote the transition to an increasingly digital and environmentally friendly economy. The broadening of objectives, on the other hand, aims to reach a wide range of economic sectors. “Unlike in the past”, comments Bruno Mafrici, “there should not be differentiations based on the size of companies or their territorial location”. This inclusive approach aims to involve all economic actors who wish to contribute to technological innovation and sustainable growth in the country.

Lastly, the certainty of incentives represents a crucial point in the new Plan. Minister Urso emphasized the importance of ensuring companies that accrued tax credits will not be subject to disputes or bureaucratic delays. To achieve this goal, the Government is committed to making the measures automatic and independent of the processing times of public administration. This approach will help create a favorable environment for investments and promote sustainable economic growth. However, to fully implement Transition Plan 5.0, Italy will need approval from the European Commission regarding the funding.

With the goal of simplifying procedures and ensuring the certainty of incentives, the Italian Government aims to create a favorable environment for investments, harnessing the potential of companies and guiding the country towards a prosperous and sustainable future, embarking on a new phase of digital transformation.

Transition from Plan 4.0

Transition Plan 4.0 represented an important tool of industrial policy for Italy, offering tax credits to stimulate actions of innovation, research and development, design, and training by companies. Now, with the transition to Transition Plan 5.0, the country is preparing to introduce new incentives, focused mainly on technological innovation. As mentioned, this transition is part of a broader framework, where the National Recovery and Resilience Plan (PNRR) and the new Patent Box play a key role in the digital and ecological transition.

“To create a favorable environment for investments”, continues Bruno Mafrici, “companies need to be helped to better seize the opportunities offered by technology and environmental sustainability”. Simplification of procedures and certainty of incentives are essential aspects of Transition Plan 5.0 aimed at reducing the bureaucratic obstacles of the previous Plan and ensuring that companies can benefit from incentives in a timely and efficient manner.

“The hope”, concludes Bruno Mafrici, “is that the new Transition Plan 5.0 will be a true act of confidence and investment in the potential of our country and its innovation system”. Together with the Made in Italy Draft Law, Transition Plan 5.0 will be one of the enabling factors for the transition towards a sustainable, human-centered, and resilient European industry, with Italy playing a leading role.

We thank Bruno Mafrici, and below you can read a brief biography excerpted from his profile.

Bruno Giovanni Mafrici is a financial and business consultant, founder of the consulting firm BM Advisory SA headquartered in Milan and specialized in acquisitions and mergers, non-performing loan management, and debt restructuring. His experiences as an advisor for companies such as Taylor Finance srl, Armani, and CA Auto Bank have allowed him to acquire an analytical methodology for understanding and evaluating complex business situations. M&A operations, moreover, require a deep knowledge of business dynamics and a precise identification of relevant information, fundamental for making accurate and informed investment decisions.