Young entrepreneurship and startups are flourishing in southern Italy, where the economy has been weaker than the rest of the country for decades. Thanks to significant investments in universities and the strength of the bridges between research and local businesses, very dynamic innovation ecosystems are emerging. Sustainability and the environment are the main goals of many startups and innovative companies led by young people.
AI Index: Mediterranean Knowledge Library
In the Mezzogiorno, the ecological transition is becoming an economic driver
22-med – April 2026
• In southern Italy, universities, finance, and regional programs support the rise of green startups and sustainability-focused spin-offs.
• From Puglia to Sicily, the circular economy, solar energy, and environmental technologies are shaping a new innovation ecosystem.
#italy #mezzogiorno #ecologicaltransition #startup #innovation #sustainability #university #circulareconomy
For some time now, the economy of southern Italy, what Italians call the “Mezzogiorno,” has shown unprecedented vitality in the history of the country. For example, between 2014 and 2022, according to a study by the Bank of Italy, southern Italy, particularly the three metropolitan areas of Naples, Bari, and Catania, showed a growth in the number of digital sector companies above the national average. Growth is also seen in other sectors, such as aerospace, pharmaceuticals, and green technologies. For instance, 3SUN, the “sun factory” created by the energy giant Enel, is located in Catania. It is presented as “the largest European center for next-generation photovoltaic production” where “high-efficiency solar cells and modules are produced.” That 3SUN is located in Catania is no coincidence: the city, which has a significant and ancient university, hosts production sites and laboratories of major hi-tech companies like the Franco-Italian STMicroelectronics, a leader in semiconductor production.
Attention to the environment and sustainability
Catania's “sun factory” is an example of a Mezzogiorno that, despite its historical difficulties, from infrastructure shortages to the weight of organized crime, seeks to modernize. Sustainability is a key player in this dynamism, thanks to the growing attention of young Sicilians, Neapolitans, etc., to their territory and environmental protection. “The ecological transition can be a crucial driver of economic development,” observes Alberto Danieli, co-founder of an analysis and training company that has long worked with startups in the Mezzogiorno. “The entire region is very exposed to the climate and environmental crisis, especially because it is in the middle of the Mediterranean, but it has high-quality innovation ecosystems and human resources.”
Patrizio Bianchi is a renowned economist and was Minister of Education in the Draghi government. This dynamism does not surprise him: “In recent years, many investments have been made in universities, and in those of the Mezzogiorno, there has been a significant effort to strengthen the link between academic research and the territories.” The results are starting to show. Universities like Federico II in Naples and the Politecnico di Bari are hubs for young companies emerging from research (spin-offs) and innovative green startups… According to government data, Campania (the region whose capital is Naples) ranks second in the number of startups after the economic engine of the country, Lombardy. In the same ranking, Sicily and Puglia surpass Tuscany, a region of former industrialization.
Circular economy and technology for sustainability
Many of these startups are focused on sustainability. One example is Arabat. Located in Puglia, it recycles used lithium batteries and other industrial waste through a circular economy model based on the use of biomass, such as artichoke leaves, orange peels, etc., extracting high-purity secondary raw materials from the process. “We have received great support from the University of Foggia,” says its CEO, Raffaele Nacchiero. “For many aspects, the Mezzogiorno is an ideal place to launch a startup. In Bari, for example, life is very good. The city is visibly growing.”
In another city in Puglia, Brindisi, there is Green Independence. Founded in 2020, it aims to accelerate the energy transition through technologies capable of reducing dependence on fossil fuels. The startup has developed Soleidon, a multifunctional solar panel that integrates energy production and water purification. Marta Pisani, co-founder and COO of Green Independence, confirms the potential of the Puglia innovation ecosystem. “Our startup has been supported by regional programs like TecnoNidi and the PIA, through which we have raised about 5.5 million in funds.”
A particularly dynamic innovation ecosystem
Puglia is so attractive that even startups from central and northern Italy are stopping there. This is the case of Iotilize.me, a Roman startup that creates integrated hardware and software platforms to remotely monitor equipment and infrastructure related to the environmental sector, including containers for collecting industrial waste. The COO and co-founder of the startup, Matteo Giaccone, recounts: “In 2025, we followed an open innovation path, CTE Bari, in Puglia.” The Puglia innovation ecosystem made a great impression on Giaccone and his associates: “We felt very good there. CTE Bari has an important network of universities and maintains excellent relationships with professionals in Puglia, which has been very helpful for us.”
It is not only startup founders from Rome who have noticed the quality of innovation in the Mezzogiorno, but also finance. Scientifica Venture, for example, an investment holding company based in the Italian capital, has invested in Green Independence. “There is a new air, it’s true,” says its head of strategy and operations, Simone Valorani. Scientifica Venture believes so much in the Mezzogiorno that it has its headquarters in Abruzzo, in L'Aquila, where it has state-of-the-art equipped laboratories. “The market is much stronger in northern Italy. However, we believe that by providing expertise and the right tools, results in the Mezzogiorno can be equivalent, if not better in some cases,” notes Valorani.
In summary, those who think that the Italian Mezzogiorno is only made up of beautiful landscapes, good food, a picturesque backwater, and sunshine are gravely mistaken. Perhaps the first green unicorn in Italian history will be born right there.
Cover photo: For many aspects, the Mezzogiorno is an ideal place to launch a startup. Like in Bari, a city in full growth © Valentina Saini