No. 1081 - Firm size and business dynamism in Italy: evidence from microdata

Questioni di Economia e Finanza (Occasional papers)
by Sara Garbin, Andrea Linarello, Andrea Locatelli, Bernardo Mottironi, Giulio Papini, Pasquale Recchia, Andrea Sechi and Gianluca Viggiano
November 2026
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This paper examines the increase in the average size of Italian firms between 2014 and 2024, assessing the extent to which it reflects the growth of individual firms or changes in the composition of the production sector. It also examines the characteristics of firms that experienced strong employment growth over the same period.

The increase in the average size of firms mainly reflects the growing weight of older firms, driven by a decline in the flows of business creations and closures. High-growth firms, which in 2024 employed one fifth of all employees in Italian firms, are on average younger and more productive, invest more - particularly in intangible assets - and are more frequently involved in private equity and merger and acquisition (M&A) transactions.

Full text

  1. 12 November 2026
    No. 1081 - Firm size and business dynamism in Italy: evidence from microdata
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    (only in Italian)