Milan CEO Adriano Galliani believes that the club 'have an identity' since adopting the policy of fielding their young players.
The 72-year-old also hailed Coach Vincenzo Montella, admitting that the club brought him on board with the philosophy of youth in mind.
"The corporate policy adopted by President Berlusconi since he signed is now bearing fruit," Galliani told Teleradiostereo.
"But I must admit that I did not expect that Milan could do so well this season.
"Italian football has to change course, it is now unthinkable to hope to outspend teams such as Real Madrid in the transfer market.
"Juventus? In the league they are much stronger, but in one-off matches we have shown that we can beat them.
"They own their stadium, and thanks to this the Bianconeri manage to dominate. There is no problem with the stadium for us for Inter at the moment.
"Our youngsters? We have [Gianluigi] Donnarumma, [Manuel] Locatelli, [Mattia] De Sciglio, [Davide] Calabria and [Alessio] Romagnoli, but there are many others around me and this is the right path to follow.
"For this reason we chose Montella. It was a long courtship, but now we are reaping the rewards.
"Now there is an ideal environment to launch our young players.
"Milan have an identity: it was the right choice."