"Plural" and with variable geometry: In Parma, PPP becomes 4P

In recent months, interest has grown in taking public-private partnerships (PPPs) beyond their traditional use as tools for financing public investments through private capital under concession schemes. These schemes, incidentally, are currently undergoing changes due to amendments in Italy’s Public Contracts Code, as part of the reforms envisaged by the National Recovery and Resilience Plan (PNRR).

SDA Bocconi, through its Government & Society research area and the INVESTinIT and PNRR Labs, has been exploring this topic by combining scientific evidence—published in prestigious journals like Public Administration Review—with pilot projects implemented at the local level. Our research reveals that public-private partnerships are increasingly “plural” and adopt a variable geometry, justifying the term 4P: Public Private Plural Partnership.

These models emerge at the intersection of traditional public welfare and corporate welfare, or strategic corporate philanthropy. Currently public welfare is contracting due to society's increasingly diverse needs and constrained public budgets, while corporate welfare is expanding, driven by ESG/sustainability policies and competitiveness. Collaborative territorial welfare models are emerging where these two trends intersect, with dynamics sometimes initiated by public entities, sometimes by private ones, but always through convergent processes.

The 4P model is vividly illustrated by initiatives undertaken in Parma.

The Parma context: Fertile ground for 4P

Parma, a medium-sized city (approximately 200,000 inhabitants with a compound growth rate of 44% over the last decade), boasts a vibrant business community and ranks among Italy’s top cities for per capita income. Its strong social capital, as defined by Putnam, is bolstered by two deeply rooted institutions, the Cariparma Foundation and the Teatro Regio Foundation.

In this context, the association Parma io ci sto! (count me in!) was established in 2016 by local businesses (including Chiesi, Dallara, Barilla, and the Parma Industrial Union) to spearhead some of the city's most significant initiatives in areas such as:

• Culture and tourism (e.g., Parma as the 2020 Italian Capital of Culture and 2027 European Youth Capital).
• Food (Parma as the "Food Valley").
• Innovation and human capital (e.g., initiatives to bridge the gap between technical education and workforce skills).

Today, with support from 140 companies, Parma io ci sto! aims to enhance social well-being and quality of life while boosting the productivity and competitiveness of Parma's ecosystem.

4P in action: Public-Private welfare collaboration

Collaboration with public institutions is critical to these goals. For instance, the municipality is implementing the Climate City Contract, approved by the European Commission in March 2024, which outlines 130 actions for achieving climate neutrality by 2030. The contract involves sizable private sector contributions.

Welfare is the sphere in which particularly noteworthy initiatives are taking shape, both in terms of content and collaborative approaches. In 2022, Welldone was launched—a project that now brings together 22 companies, both large and small, from Parma, coordinated by Parma io ci sto!. Welldone has established five working groups (Health and Well-Being, Family and Caregivers, Community, Diversity & Inclusion, and Work and Training), with the aim of sharing best practices and fostering synergies.

Welldone represents a valuable asset for the municipality, as highlighted by Ettore Briani, Parma’s Social Policy Councilor: “The working group serves as a hub to consolidate the needs of Parma’s families, as it brings together the city’s main employers. So, it’s the place where we can align resources and solutions. Primary needs relate to parenting, childcare, and eldercare, among other things, which inevitably intersect with the services offered by the Municipality. These services can be redesigned and integrated with those provided by companies.”

Indeed, this public-private collaboration gave rise to Insieme con Te (Together with You), a project carried out with the Parma Hospital, led by Dr. Nunzia D’Abbiero (an SDA Bocconi alumna), head of the provincial Onco-Hematology Department. The initiative aims to give people easier access to health screenings. To do so, on one hand, it enhances the reach of prevention campaigns, and on the other, it provides an added-value service for company employees. This is a clear example of value for society achieved through public-private synergy.

Key characteristics of the 4P model

From these examples, several distinctive features emerge:

1. 4P is bidirectional. Initiatives can originate from either public or private impetus. However, the dynamism and flexibility of the private sector (and its capital) can facilitate the launch of pilot projects, which could later be scaled up with public funding. This means private sector initiatives can drive innovation and mitigate risks, which are often factors in public administration isomorphism.

1. 4P has no need for formalization or additional structures. It can leverage existing networks and organizations, as demonstrated by Welldone. However, formalization may become necessary when attracting (public-private) capital or managing assets. For instance, in the field of affordable housing, Parma is establishing a participatory foundation to coordinate and manage housing solutions under the Emilia-Romagna Housing Pact framework.

1. 4P doesn’t aim to deliver public services. Instead, the partnership  focuses on aligning needs and identifying synergistic solutions that can be financed within existing public and private budgets.

1. 4P can trigger public service redesigns. These initiatives can also attract local private investors, whether they be institutions or individuals. The latter could subscribe to social bonds, becoming active savers and investors in the city.

1. 4P empowers businesses as socio-economic actors: Unlike traditional PPPs, where companies act as service providers or contractors for public authorities, in the 4P model involves businesses as socio-economic players. They mobilize resources from their corporate budgets or philanthropic funds, depending on the project's time frame. Long-term projects might activate the latter, while short-term ones with a direct impact on the company could draw on sustainability/ESG-related budgets.

Clearly, these partnerships must emerge organically, based on the characteristics and specificities of local contexts, because generating societal value increasingly relies on the coordinated efforts of diverse actors and distributed leadership. But regulatory support could certainly help.  For this reason, Parma io ci sto! has actively promoted a legislative proposal to create a fund to provide tax incentives for private investments aligned with the principles underpinning the project.

Readers might wonder about the replicability of this model. The secret lies in tailoring the 4P approach. What we need is more collaborative governance, which requires widespread expertise, leadership, and trust. Also essential are small wins – small projects that consolidate the core element of the 4P approach, primarily collective learning that fosters convergence. Public funds could achieve far greater impact if used synergistically with corporate funds and private savings.