ABSTRACT
After being regarded as a successful model of corporate organization between the 1960s and the 1980s, Italian family firms appear to be unable to face mounting global competition. On the one hand, many tiny family firms are under-sized, reluctant to hire highly qualified personnel and to invest in technological change. On the other hand, the few big families remain trapped in mature and low-growth sectors. What are the prospects of Italian capitalism? How can the limits of family firms be overcome? What role can financial markets and institutions play? What role for the policy maker?
