Between 1996 and 2000 the Italian electronics industry showed modest growth, especially when compared to the European average and the high growth rates associated with the boom of 2000. Since then output has fallen by 6.6% in 2001, a more substantial 15% in 2002, by 7.9% in 2003 and by 2.1% in 2004. In 2005, the trend was reversed with modest growth of 0.6% but short lived with output declining by 2% in 2006 and by a further 2.3% in 2007. With falling demand production is forecast to fall sharply in 2009, by 13.7%, this following a decline of 5% in 2008. In spite of its poor performance in recent years Italy continues to be Europe 's fourth largest electronics market behind Germany , France and the UK, according to the report, Electronics Industry in Italy. In 2001, however, it dropped to fifth behind Ireland in terms of overall output a position it retained in 2007. At 24.1% the computer sector accounted for the largest proportion of output in 2007. Other important sectors are telecommunications (11.4%), control and instrumentation (21.4%), radio communications and radar & navigational aids (10.9%) and components (23.1%).
Nanotechnology
Italy now has a firm commitment to nanotechnology, though it was only in 2002 that specific funds began to be dedicated to R&D in the field. Research in nanotechnology was previously financed in the framework of programmes related to microelectronics and advanced materials. Funding for R&D comes from various Italian Ministries that have ad hoc funds allocated every year from the national budget. The national science and technology guidelines include priority areas for nanotechnology, intelligent materials and sustainable development and climate change.
