To be successful in today’s knowledge economy, communities need to boost not only the skills of local people but also the utilisation and deployment of these skills by employers. By ensuring that skills are utilised effectively, local economies can become more competitive and host better quality and better paid jobs, while simultaneously improving living standards and stimulating innovation. The OECD LEED Skills for Competitiveness project has reviewed the tools and governance mechanisms which policy makers are putting in place to tackle this policy area in three LEED member countries, Canada, the United Kingdom and Italy, with information on a wider set of policies and measurement tools being collected through an international literature review. This country report for Italy sets out data findings on the supply and demand for skills at sub-regional level (OECD territorial level 3) before exploring policy responses in Campania and Veneto, and local case studies from the Riviera del Brenta industrial district and Treviso in Veneto. The report concludes with potential policy levers for further driving sectoral and local skills development in the future.