The State supports investment in immaterial capital in two ways. Directly, through scientific research in public universities and public research institutions and through the provision of education; indirectly, in the form of subsidies and tax incentives to the private sector. There is evidence that both these forms of intervention, if well designed, have a positive impact on economic growth.
In a context of rapid technological change, fostering investment in human capital and improving its quality appears equally, if not more, important than investing in material infrastructure, especially in our country. Public spending on education is around 4 per cent of GDP, much lower than the euro-area average (Figure 1).