Giorgio Presidente

Giorgio Presidente is Research Fellow at the Institute for European Policy-Making at Bocconi University and Research Associate at the Oxford Martin Programme on the Future of Work, University of Oxford. He is interested in topics related to technology, firms and productivity, remote work, and market power.
Previously, he held positions at the World Bank, the Organization for Economic Co-operation and Development, the European Central Bank and the United Nations.
He holds a Ph.D. from Paris School of Economics.
Reports on EU Innovation and Digital Transitions
Competitiveness has returned to the top of the EU agenda, with the EU Competitiveness Compass highlighting the need for innovation-driven growth. But European industry has fallen behind in innovation by specializing in mid-tech industries, now increasingly subject to Chinese competition.
Since the start of Horizon 2020, the EU budget has provided about €100 billion to support research and innovation. But this seems to have had little impact.
A large proportion of Horizon funding has gone to a small number of big corporations with modest innovation and growth performance. Another sizable share goes to SMEs that are part of wider corporate groups.
Moreover, the lion’s share of Horizon funding has gone to collaborative programs, with detailed guidelines on research topics and expected outcomes, typically involving broad-based consortia with more than 20 participants. Yet our analysis suggests that bottom-up programs undertaken by individual recipients yield better results, but only if the recipients are independent SMEs.
Any new Framework Program should thus focus on funding ideas, not companies. They key is not more money, but rather leaving space for disruptive innovation by encouraging bottom-up initiatives, especially by small independent companies.
Through its missions and governance, Horizon Europe does not meet the innovation challenge and anchors our industry in the mid-tech range. This report argues that current European efforts, while laudable, are insufficient, in both quantity and quality. Important reforms are required to enable Europe to compete in the value-creating space.
Policy Briefs on Innovation and Digital Transition
European policymakers keep pushing the narrative that boosting AI development is key to European competitiveness. But stakes are much higher, because super-intelligent AI will confer enormous geopolitical leverage to those who control it.
Commentaries on Competitiveness
A second term for Donald Trump could structurally intensify the trend toward trade fragmentation, heightening tensions, particularly between the United States and China, the world’s two largest economies.
Policy Briefs on Competitiveness
Robust port infrastructure can significantly mitigate the risk of supply chain disruption, suggesting that government efforts are better targeted at improving the performance of ports and critical infrastructure more broadly, rather than implementing protectionist measures.
A popular thesis in policy circles is that there is an “investment gap” that Europe needs to fill to face the great challenges of our times, such as the digital and green transitions. However, the notion of the “investment gap” used by policymakers is often vague and therefore it risks legitimate a wasteful allocation of public resources.
Commentaries on Defense
EU firms should be able to satisfy a large share of the increases in defence expenditure that are required immediately to support Ukraine and also those in the medium and longer-term
Policy Briefs on Green Transition
This policy brief highlights that while the green subsidies provided by the Inflation Reduction Act of the United States are homogeneous across beneficiaries, the subsidies associated with the Green Deal industrial plan are highly fragmented across European member States. We quantify the extent of resource misallocation due to this subsidy dispersion by using the model of Hsieh and Klenow (2009), calibrated on the EU electricity-producing industry. We compare both the actual allocation of subsidies, and a policy of subsidies coordinated at the EU level, to a hypothetical frictionless benchmark with no subsidies. We find that moving to coordinated subsidies can increase productivity by more than 30% with respect to the uncoordinated scenario, substantially reduce the productivity gap with the United States, and generate gains worth up to 6% of the EU value-added in the industries considered. Policy recommendations include greater EU-level coordination to minimize misallocation and enhance productivity.
Reports
In this Working Document, we do not try to provide an overall evaluation of the IRA or its cost-effectiveness with regard to addressing climate change and US emissions. Rather, we investigate its impact on the US market and on EU export opportunities, concentrating on the material content of the IRA – not its intention.
Commentaries on Governance
We identify specific industrial products that are projected to be in high demand in the EU and can be realistically produced given North African countries’ existing capabilities. Specializing in these products, North African countries can diversify their export basket, which has been shown to correlate positively with economic development.
IEP@BU - ECFR Working lunches
The arrival of Donald Trump and the protectionist shift of the United States are forcing the European Union and China to redefine their relations. Could the American administration’s aggressive approach to trade encourage a rapprochement between the EU and China? Or does it make it even more necessary for Europe to pursue strategic autonomy and a risk-reduction strategy to mitigate dependence on unreliable trading partners?
Monthly Brainstorming Session
Open Discussions
Join us for a brainstorming seminar dissecting the EU's innovation journey, focusing on the European Innovation Council within Horizon Europe. The paper, presented by Daniel Gros and Giorgio Presidente, compares R&D spending patterns, highlighting challenges such as low innovation support, minimal allocation to a "DARPA-style" program, and inefficient governance.
An open discussion about a paper by Carlo Altomonte and Giorgio Presidente that exploits a standard framework to map resource misallocation in order to assess the extent to which national (vs. supra-national) industrial policy tools (price subsidies and state aids) have led to suboptimal levels of productivity in the EU, with the ensuing policy implications for the design of the new Green Deal industrial plan.