Lombardy Intelligent Factory Association (AFIL), Lombardy Region, Italy

Lombardy’s strategic objectives are enshrined in the Regional Strategy for Sustainable Development of Lombardy (PRSS). They are divided into five macro areas that cover the entire spectrum of the region's competences:

1. Health, equality, inclusion;
2. Education, training, work;
3. Development and innovation, city, territory and infrastructure;
4. Climate change mitigation, energy, production and consumption; and
5. Eco-landscape system, adaptation to climate change, agriculture.

The strategy is complemented by a three-year Strategic Programme for Research, Innovation and Technology Transfer 2024-2026. The programme comprises some 30 initiatives, contributing to the achievement of the legislative objectives defined by the PRSS, covering all its priorities.

Closely aligned is the region’s Smart Specialisation Strategy 2021-2027, which is aimed at “deliver[ing] a more targeted ERDF support and an integrated approach to harness the potential for smart growth in the Lombardy Region, focusing on key R&I priorities and building upon regional competitive strengths.” Lombardy’s RIS3 2021-2027 highlights the following two main strategic challenges:

1. Supporting industrial transformation towards digital transition and sustainable development so to understand the evolving citizens needs as quickly and effectively as possible;
2. Increasing the resilience and adaptability of the regional system to the rapid changes of the socio‐economic and‐productive system in order to ensure citizens safety and well‐being.

Lombardy’s RIS3 strategy is complemented by two-year “Work Programmes for Research and Innovation”, which are the operational part of the strategy. The work programmes include the technological priorities, the expected impacts and the way of the Lombardy Research and Innovation (R&I) system to contribute to the attainment of Italy’s Agenda 2030 for Sustainable Development.

Lombardy’s RIS3 Strategy defines the term ecosystem as a “set of public and private actors and of associations that operate in a specified territory, in which activities and resources contribute to satisfy an individual or collective need”. According to this logic, the following 8 Innovation Ecosystems have been identified under the current RIS3 Strategy:

1. Nutrition
2. Health and life science
3. Culture and knowledge
4. Connectivity and information
5. Smart mobility and architecture
6. Sustainability
7. Social development
8. Advanced Manufacturing

For each ecosystem, the RIS3 Strategy illustrates the general needs, involved actors, regional priorities, and relevance in terms of R&I potential.

Current cluster policy in Lombardy is the result of an evolution of the region’s Industrial and R&I policies from the previous support of traditional sector districts (before 2003) to the formation of Regional Technology Clusters in 2013. In close alignment with a 2012 initiative by the Italian Ministry of Education & Research (MIUR) on the development of eight National Technology Clusters, the Lombardy Region facilitated the development of nine regional Lombardy Technology Clusters (LTCs) with the aim to involve the regional innovation ecosystem and facilitating collaborations and synergies between the relevant stakeholders. This process was carried out in line with national guidelines and in connection with the 2012/2013 regional Smart Specialisation Strategy – Entrepreneurial Discovery Process (EDP).

The nine Lombardy Technology Clusters include:

1. The Aerospace cluster (Lombardy Aerospace Cluster), with 114 members,
2. The Agrifood cluster (Cluster Alta Tecnologia Agrifood Lombardia), which counts 14 members,
3. The Green Chemistry cluster (Lombardy Green Chemistry Association), which counts 50 members,
4. The Energy cluster (Lombardy Energy Cleantech Cluster), with 140 members,
5. The Advanced Manufacturing cluster, represented by the Lombardy Intelligent Factory Association (AFIL), which counts 143 members,
6. The Lombardy Mobility Cluster (Cluster Lombardo della Mobilità), which counts 100 members,
7. The Life science cluster (Cluster Lombardo Scienze della Vita), with 114 members,
8. The Technologies for smart cities and communities cluster (Fondazione Cluster Tecnologie per le Smart Cities & Communities Lombardia), with 88 members, and
9. The Technologies for living environments cluster (Fondazione Cluster Lombardo Tecnologie per gli Ambienti di Vita), with 31 members.

Source: Confindustria Lombardia

From 2014 to date, Confindustria Lombardia, the regional representation of Confindustria, Italy’s main manufacturing and service association, has supported the nine LTCs by setting up a Cluster Technical Committee to provide support on governance and cluster positioning in the context of national and European policies for internationalisation, innovation and competitiveness.

Today, the nine LTCs bring together more than 750 members (including companies, research centres, universities, public and private institutions and other subjects of the Lombardy innovation ecosystem) distributed in all provincial territories and focused on a specific technology and field of improvement. For the regional authorities, the clusters offer an important opportunity to identify the competences existing within them - and in their territory – initially in the fields of specialisation as well as in the ecosystems of innovation identified by the RIS3. The nine clusters actively contribute to the S3 EDP with ideas related to priorities and themes of strategic interest, acknowledged in the two-year “Work Programmes for Research and Innovation”.

As for the future, regional authorities consider a new ERDF financial support scheme for all 9 clusters. As of today, 2 measures are planned in 2024 and in 2026. The scheme is based on a mission approach according to which the 9 LTCs can propose specific actions to contribute to the region’s strategic objectives.

In addition to the nine LTCs, Lombardy is home to a number of additional network organisations, which are registered on the ECCP.

Lombardy’s manufacturing sector is characterised by a high manufacturing value, with strong technological and research competencies in machinery and manufacturing systems development and management. The sector counts about 85,000 enterprises, employing more than 900,000 people for a total revenue of €257 billion. The region ranks first in Italy in terms of manufacturing turnover and value added and second in Europe in terms of employees. Total manufacturing exports in 2022 reached €163 billion. With 140 patents per million inhabitants, Lombardy is also the leading Italian region by number of patents in manufacturing technologies registered at the EPO (European Patent Register).

The large number of enterprises in the sector benefit from a strong regional innovation ecosystem, featuring incubators, accelerators and innovation hubs, such as Como Next, Parco Scientifico e Tecnologico Kilometro Rosso, POINT or PoliHub. Main protagonist of Lombardy’s manufacturing ecosystem is the Lombardy Intelligent Factory Association (AFIL), which promotes and facilitates research and innovation in the technological field and redevelopment practices for the manufacturing sector, in order to support and develop the leadership and competitiveness of the Lombardy production system.

AFIL counts 143 members from different categories, namely industry (including Large Enterprises, Small and Medium Enterprises, as well as start-ups), research (universities, research centres, public and private research institutes) and associates (subjects belonging to trade associations). The cluster management team consists of seven well-qualified staff members (7 full time equivalents (FTE)), while the governance is entrusted to a Board of Directors composed of ten members elected by the Members’ Assembly. Funding for the cluster organisation is generated through membership fees, as well as regional, national and European R&I grants, such as Horizon 2020 and Europe, Interregional Innovation Investments (I3) and Interreg. Work of the cluster management is based on a Strategic Research and Innovation Roadmap with a threefold mission:

• Creating a powerful research and innovation ecosystem based on regional specialisation, with a view at connecting businesses, start-ups, universities, research bodies and associations, as well as at encouraging collaboration and promoting research and innovation projects and initiatives;
• Providing a point of reference point for the Lombardy Region for the definition of research and innovation strategies and policies in the manufacturing sector;
• Positioning Lombardy’s manufacturing industry in Italy, Europe and the World, through participation in the National Intelligent Factory Cluster - CFI and the connection with other European regions as part of Smart Specialisation Strategies.

Since 2014, AFIL acts on behalf of the Lombardy Region as European co-coordinator of the Vanguard Initiative’s Pilot “ESM - Efficient and Sustainable Manufacturing”, which aims at elevating the efficiency and sustainability of production processes. Led by Lombardy, Catalonia and Auvergne-Rhône-Alpes, the ESM pilot currently brings together 119 stakeholders and 23 regions.

Digital and green industrial transition are core objectives of the cluster initiative. In order to achieve these goals, the cluster management narrowed down its service portfolio to a set of targeted support activities:

• Supporting regional policy making by involving industry and research in S3 strategy design;
• Coordinating regional Working Groups (so-called “Strategic Communities”) on seven strategic topics: De- and Remanufacturing for Circular Economy, Digital Transformation, Advanced Polymers, Additive Manufacturing, Secure and Sustainable Food Manufacturing, Smart Components and Machinery;
• Awareness raising, Networking, Collaboration and Events;
• Facilitating cross-border and interregional cooperation by participating in European R&I projects (such as those co-funded under Horizon Europe, Interregional Innovation Investments (I3) and Interreg) and networks (such as Vanguard Initiative, European Cluster Collaboration Platform, Four Motors of Europe and Smart Specialisation Platform).

Since its founding in 2013, AFIL has established itself as a key-stone actor within Lombardy’s industrial ecosystem. The cluster’s activities are mainly driven by seven so-called “Strategic Communities” on De- and Remanufacturing for Circular Economy, Digital Transformation, Advanced Polymers, Additive Manufacturing, Secure and Sustainable Food Manufacturing, Smart Components and Machinery. These Working Groups, which are open to all AFIL members, address innovation and cutting-edge technologies within the industrial specialisations of Lombardy. The AFIL cluster management promotes the formation of the Strategic Communities and, above all, plays the role of a spokesperson for the priorities and needs emerging from the groups in the Lombardy Region as well as other institutions. By doing so, the cluster has become a key strategic partner for the regional authorities. In particular, AFIL is an active contributor to the regular EDP sessions for the development and revision of Lombardy’s RIS3 strategic priorities and the related work programmes. In addition, the cluster contributed to Lombardy Roadmap for Research and Innovation on Circular Economy as well as the identification of R&I priorities for enhancing Artificial Intelligence applications in Manucturing in Lombardy (officially presented during the Clusters meet Regions event in Milan on the 26 and 27 March 2024).

More generally, through its active participation in the Vanguard Initiative’s Pilot ESM - Efficient and Sustainable Manufacturing, AFIL has successfully managed to co-shape the European policy agenda by showcasing demo cases on de- and remanufacturing. In terms of internal impact towards the management practices of its company members, AFIL’s various activities on Circular Economy, as well as on Digital Transition, helped raising their awareness also thanks to the Cluster’s participation in European projects, such as:

• DeremCo (I3), where AFIL, in close collaboration with its 29 European partners, works towards the establishment of a Circular Economy solution that will unlock the cost-effective reuse of post-use composite materials and components in new high-added value products.
• BATMASS (I3), whose aim is to implement the first European Circular Battery Valley and therefore provide a strategic response to the urgent need for sustainable battery production and recycling practices within the EU;
• PLASTIX (Interreg Europe), whose objective is to facilitate industrial transition towards a resource efficient economy, circular economy growth and eco-innovations, by tackling the growing problem of plastic waste, its recyclability, reusability and replaceability;
• AI REDGIO 5.0 (Horizon Europe), which focuses on renovating and extending the alliance between Vanguard European regions and Digital Innovation Hubs (DIHs), with a view at implementing a competitive AI-at-the-Edge Digital Transformation of Industry 5.0 Manufacturing SMEs;
• GreenSmartMed (Interreg Euro-MED), whose aim is to develop a methodology to foster trans-regional cooperation between 4HELIX players (companies, academics, public authorities and citizens) to promote innovation and sustainability in the manufacturing industry of the Euro-Mediterranean area, within strategic sectors such as textiles, plastics, agri-food, mobility and industrial machinery.

Since 2014, AFIL has been working on the topic of Circular Economy paying a specific attention to the steel process and the development of new Life Cycle Assessment (LCA) techniques for the sustainability balance, with the aim of characterising all the energy-intensive aspects of the manufacturing process and arriving at an Environmental Product Declaration of product for the steel sector.

An additional topic for the Circular Economy Strategic Community is the reuse and recycling of batteries used for electric vehicles. The subgroup’s objective is to define a circular development model for batteries for electric vehicles by implementing technological functions in batteries that have reached the end of their life cycle. The possibilities being studied are the production of “second-life” modules for stationary applications, for example for powering photovoltaic parks, or for new applications in electric mobility, and new recycling strategies in mechanical and chemical treatments.

A third subgroup of the Circular Economy Strategic Community addresses the topic of textile recycling. The group started working in February 2021 and outlined seven priorities on which to focus, confirming and detailing what was already included in the Roadmap on Circular Economy of Lombardy Region: recycling technologies (sorting and separation), sustainable products and processes (performance and quality of recycled fabrics, new sustainable raw materials), digital platforms, design for circular economy, new business models, standards and certifications, and training.

The case of AFIL and Lombardy Region highlights the important role of policy support for cluster-based economic development at national and regional levels. Moreover, it shows the need for a close alignment of national and regional industry and R&I policy initiatives. The case also demonstrates how clusters can be used to facilitate green and digital industrial transition by exploiting the potential of a targeted and innovative service portfolio. Finally, the case underlines the relevance of international engagement and partnering in European research and innovation projects.