In terms of per capita value added, Rome's economy performed relatively worse than those of the other major Italian and European cities in the 2000s. This trend is the result of an unsatisfactory output-per-employee dynamic combined with sustained employment rate growth. This paper investigates the root causes of this poor performance.
The decline of the public sector, large enterprises, and investments, as well as the shift in production toward low value-added services, were the main factors that harmed the capital's economy. However, Rome's economy retains many strengths, including the continued importance of advanced services and workers with a higher education, a high rate of company birth, and a significant weight of public research.
