Since 2001 Italian economy is on trouble. The main stream explanations pick out primary causes on industrial specialization (based on traditional sectors) and related size structure (strong weight of small firms): this conditions should expose economy to low costs competitors and grows to be difficult technological innovation processes investments. This article advances a different insight in so called industrial decline of Italy and it tries to outline several growth trajectories based on a realistic political economy perspective. First of all, the paper propose a reading of institutional cycles as key to an understanding this critical economic passage, that is shared with other advanced economies, specifically in Europe. On the other hand, it discuss four innovation economic strategies for Made in Italy industries: experience goods and services, technological integration processes, information goods disjointing from industrial operations, and multinational organization of production. Conclusions try to discuss the schumpeterian problem of social opposition to innovation as one of the main barrier to growth that economic institutions have to face in high developed countries.