A strategic entry point to the EU with a Strategic Logistical Position within the EU and Mediterranean area.

A national manufacturing structure of which an important

pillar is represented by dynamic family owned businesses

many of which are world leaders in their production sector.

An industrial production system focused on Innovation, Quality and Excellence.

A country open to Foreign Investments.

Italy is at the center of 3 key markets of about 800 million

consumers

Southern Mediterranean Countries

� Inhabitants: 269 million

� GDP: USD 2,256 billion

Balkan Countries

� Inhabitants: 58 million

� GDP: USD 700 billion

European Union

� Inhabitants: 491 million

� GDP(PPP): USD15,821 billion (IMF 2011)

A Strategic Geographical Position

N. of company

Employees%

employeesAdded Value

(mln €)% added

value

Micro Co’s 4.200.000 8.200.000 47,2 237.400 33,4

Small Co’s 211.000 3.800.000 21,8 157.000 22,1

Medium Co’s 22.000 2.200.000 12,6 114.300 16,1

Large Co’s 3.508 3.200.000 18,4 202.200 28,4

Total 4.436.508 17.400.000 100.00 710.900 100%

• In Italy about 28% of the added

value is concentrated in Large Co’s;

• About 72% of the total added value

is generated by Micro Co’s and

SMEs;

• SMEs are known for niche

specialization; their share in export

is slightly higher: 27,3% than the

EU average: 27,1%.

Source: Ministry of Economic Development 2012

Breakdown of Italian Companies by Size

Italian Industrial Structure (1/2)

Geographical distribution (%)

Turnover sectordistribution (%)

About 70% of companies with a turnover of between €50

and €500 million are concentrated in only 4 Italian

Regions.

More than 1/3 are in manufacturing.Source: Bureau Van Dick 2011

Source: Bureau Van Dick

0,8

0,6

0,2 1,42,7

0,3

1,0

1,6

9,2

0,3

7,5

35,3

3,1

1,6

11,4

13,6

1,8

1,6

Italian Industrial Structure (2/2)

Source: IDATE Mobile 2009

World's 5th manufacturing country in terms

of added value, after US, China, Japan and

Germany.

EU’s 2nd industrial manufacturing base

after Germany.

Major driving forces of the Italian

manufacturing sector with significant foreign trade surplus are:

�Industrial machinery and high tech

specialized suppliers,

�Fashion (including apparel, leather

goods, footwear, jewelry, eyewear,

cosmetics),

�Furniture, ceramics and building

materials,

�Food and wines.

Each year these sectors account for over 65% of the overall manufacturing value added, with

a trade surplus among the world’s highest.

Shift towards higher value - added productions

and personal luxury goods.Reduced volumes but

increased value of exports .30% share (together with France)

of the world luxury production ,

followed by US (20%) and Switzerland (8%).

A Dynamic and Mature Export

The Innovation System

Innovation is driven by an extensive, high-quality network of universities and R&D centers.

87 universities and some 8,600 graduate courses.

40 networks of science and technological parks ensure the integration of research into industrial production.

1,7 million university students and an average of 270,000 graduates each year.

Over 200 R&D Centers (public and private) and 16,000 employees with a high level of technological expertise.

Excellent sector-specific technical and managerial skills which top foreign multinationals.

4th in the G12 countries for registered trademarks and 8th for number of pending patents.

Source: MIUR

Comparative advantage in different technology

sectors: aerospace, biotechnologies, automation.

Widespread cooperation between firms and

scientific institutions contributes to innovation and

success in the market.

Growing importance of nanotechnologies with more

than 200 institutions involved in the field.

The Innovation System: Technological Districts (1/2)

Technological Districts (TDs) are innovation poles of excellence.

28 TDs specialized in different areas:

nanotechnologies, innovative materials, ICT, aero-

space, life science, etc.

Source: MIUR

The Innovation System: Technological Districts (2/2)

Source: MIUR

• Distretto Tecnologico AgroBio e Pesca eco-compatibil e

• Distretto Tecnologico Trasporti navali commerciali e da diporto

• Distretto Tecnologico Micro e Nanosistemi• Distretto Tecnologico Energia Petrolchimica e Ambie nte

• Distretto Biotecnologico agroalimentare Pugliese

• Distretto Meccatronico Pugliese

• Distretto Tecnologico Pugliese High-Tech

• Distretto DI.T.N.E (energia rinnovabile)

• Distretto Tecnologie innovative per la tutela dei rischi idrogeologici e sismici

• Distretto Tecnologico Innovazione Sicurezza e Quali tà degli Alimenti

• Distretto Tecnologico per l'innovazione agroindustr iale

• Distretto Materiali speciali metallurgici dell'Umbr ia

• Distretto Tecnologico per i Sistemi Intelligenti In tegrati• Distretto Ligure delle Tecnologie Marine

• Distretto Tecnologico ICT • Distretto Tecnologico Materiali Avanzati• Distretto Tecnologico Biotecnologie• Distretto Tecnologico Agroalimentare

• Distretto Tecnologico ICT & Security

• Distretto Tecnologico per l'Aerospazio-DTA• Distretto Tecnologico Beni culturali• Distretto Tecnologico Bioscienze

• Distretto Tecnologico Torino Wireless

• Distretto Tecnologico per la Biomedicina e delle Te cnologie per la salute

• Distretto Tecnologico sull’ingegneria dei materiali compositi e polimerici

• Distretto Tecnologico di Biomedicina Molecolare • Distretto Tecnologico Navale e Nautico - DITENAVE

• Distretto Tecnologico Veneto Nanotech

• Distretto Tecnologico Hi Mech

• Distretto Tecnologico della Logistica e Trasformazi one• Distretto Tecnologico per il restauro dei Beni Cult urali

• Distretto Tecnologico Habitech• Distretto Tecnologico Tecnologie Alpine

• Distretto Tecnologico Qualità della vita, Innovazion e e Sicurezza nell’abitare

In 2010, Inward Foreign Direct Investment (FDI) stock was €248 billion (USD332

billion).

For the past four years (2007–2010), average inflows were €10,8 billion (USD14,7

billion).

Compared to other major EU countries, Italy is underperforming in its FDI attraction

related to the size of its economy: while Italy accounted for 13% of the EU’s GDP in

2010, its inward stock was 4,9% of the EU’s totals.

EU countries are the origins of most of Italy’s FDI. The five largest investor countries

are Luxembourg, France, the Netherlands, the United Kingdom and Germany.

The value of net M&A sales, however, more than doubled from USD6 billion in 2010 to

$13 billion in 2011. The takeovers by French firms of Bulgari, a luxury-goods firm, and

Parmalat, a dairy group, accounted for much of the rise.

Source: UNCTAD February 2012

Foreign Direct Investments in Italy

Source: IDATE Mobile 2009

Foreign companies may apply for a variety of business incentives according to the location

and size of the business. Some incentives are granted automatically upon meeting the

requirements for access, while others require successful completion of evaluation procedures.

Business Incentives:

�Grants for investment in new and existing production facilities, the revitalization of industrial

areas, local development, R&D and the agro-industry.

�Capital grants, easy-term loans or tax credits.

�Incentives for larger local development programs involving the central and local government.

�R&D tax credit for companies (including nonresident companies with a permanent

establishment in Italy) outsourcing R&D activities to universities or public research bodies.

Hiring and training incentive schemes (grants or tax relief) are available in all the Italian

Regions and depend upon several parameters such as: enrollment fees, gender, age,

long/short time of unemployment status, social status, disabilities, etc.

Financial Packages for International Investors (1/2)

Development Contract:

� support is provided in the form of grants or soft loans, as well as combinations of the two

forms; the incentives are calculated on the basis of eligible investment cost;

� eligible projects: manufacturing, mining, power generation activities (excluding activities

associated with the steel and coal industry), services.

Law 181/ 89:

� support is provided through a mix of incentives: grants, soft loans and minority equity

participation;

� eligible projects: new investment projects (including new plants, expansion,

modernization and restructuring) in manufacturing and service industries.

For further information

http://www.invitalia.it/site/eng/home/business-environment/incentives.html

Financial Packages for International Investors (2/2)

ICE- Trade Promotion Agency, under mandate of the Ministry for Economic Development, provides

information, support and advice to Italian and foreign companies. ICE operates worldwide from a large

network of Trade Promotion Offices linked to Italian embassies and consulates.

http://www.italtrade.com/about/about_us.htm

INVITALIA-National Agency for Inward Investments and Economic Development , under mandate

of the Ministry for Economic Development, manages contacts and relations with foreign investors,

Ministries and local authorities. INVITALIA provides services free of charge and administers a set of

Financial Support packages :

�Development Contract�Law 181/89

http://www.invitalia.it/site/eng/home.html

Desk Italia –Decree Law “Dl Crescita 2.0” (GU 18 ottobre 2012 n° 179), art. 35, establishes Desk Italia,

a one-stop-shop for foreign investors. Under mandate of the Ministry for Economic Development, Desk

Italia assists and advises international companies regarding business location, location

expansion, relocation & FDI services in Italy.

National Agencies for Internationalisation

ICTs (INFORMATION AND COMMUNICATIONS TECHNOLOGIES)

Life sciences

Logistics

Tourism

Renewable Energy

Investment opportunities: Italy’s Strategic Sectors

Italy’s Strategic Sectors ICT

Italy is Europe’s 4th largest ICT market, with market

value exceeding € 60 billion in 2010.

ICT market share is worth € 41,8 billion of which IT

is worth € 18,4 billion.

Italy ranks 2nd in Europe for mobile phone

penetration with over 90 million active SIM cards.

Source: Eurostat,2011

Over 500 foreign ICTs companies.

R&D centers: Intel, Microsoft, IBM, Siemens, LG,

Marvell, Infineon, Maxim, International Rectifier.

A strong base of HR: about 50,000 new degree

graduates a year in ICT-related disciplines.

For further information

http://www.invitalia.it/site/eng/home/investment-opportunities/ict.html

CRESUniversity of Palermo

AREA Science ParkUniversity of Trieste

ISMBVirtual reality and

multimedia ParkPolitecnico of Turin

IITISTI

Scuola Superiore Sant’AnnaScuola Normale Superiore

-CEFRIEL-IMATI-Politecnico of Milan

IREAUniversity of Naples

Sannio University

ENEACNRIASI

University La Sapienza

IMMUniversity of Catania

CRS4University of Cagliari

NNLISSIA

Italian Instituteof Technology

Italy’s Strategic Sectors Lifescience

Italy is one of the world leaders in Life Sciences, being the 3rd

largest industry in Europe after Germany and France (Source: IMS

2011).

Pharmaceuticals rank 5th for total sales (pharmacies + hospitals),

thus providing a relevant driver for biotech development.

3rd highest turnover in Europe amounting to € 23,3 billion

Substantial R&D spending at over € 1,2 million per year

Some 100 foreign companies operating in the sector, including all

major multinationals.

Strong competencies in Biomedicine, Oncology, Diagnostics,

Neurosciences.

Large community of expertise: IFOM, European Institute of

Oncology, ICGEB.

Extremely competitive R&D labor and facilities costs compared to

USA, UK, Germany and France.

For further information

http://www.invitalia.it/site/eng/home/investment-opportunities/life-sciences.html

Science and Technology Park of

Sardinia

AREA Sciences park

San Raffaele Biomedical Sciences Park

CanaveseBioindustry Park

Toscana Life Science

Park

-San Raffaele Hospital-National Institute for Research and Treatment of Tumours-IEO-Mario Negri Institute

National Cancer Research Institute

-Regina Elena Institute for Research and Treatment of Tumors

- CNR- ENEA

Giovanni Pascale National Institute for Research and Treatment of Tumors

Parco TecnologicoPadano

Italy’s Strategic Sectors Tourism

As one of the top brands in the world, Italy continues to have a great reputation as a

preferred destination:

�1st place among EU countries for accommodation capacity;

�3rd place among EU countries for arrivals;

�4th place in world country rankings for currency earnings ;

�5th place in world rankings for arrival: 43,6 million of tourists in 2010 and revenues of

USD 38,8 billion (UNWTO, April 2011).

Italy’s attractiveness combines with its world renowned values such as life style and “Made

in Italy” quality, design, luxury and exclusive products.

Its “products portfolio” is broad, rich and flexible, combining intense experiences for those

in search of Art, History, Tradition, Nature, Landscape, Culture, ‘Best of’ and ‘Surprises to

discover’ thus satisfying all tourist needs .

The country benefits from highly qualified human resources, thanks to a widespread

hospitality culture, supported by a capillary training activity, from school to university,

targeted to students, workers and managers .

For further information

http://www.invitalia.it/site/eng/home/investment-opportunities/tourism.html

Italy’s Strategic Sectors Logistics 1/2

2nd longest road network: 6,500 km of motorways equal to 13.7% of all EU (25) motorways; 21.500 km of national roads.

5th longest rail network: 16,703 km of working lines and 24,216 km of tracks.

Most developed freight village systems in Europe: 7 Italian freight centers in the Top 20 of European logistic infrastructures, with Verona ranking 1st.

2nd most important country for maritime freight transport: 24 main commercial ports; 3 International Hubs; 7,400 km of coastline; around 10 million TEUs of total traffic containers in 2010.

1st EU country in maritime transport of passengers in 2009 with 92 million passengers.

The strategic position guarantees more favorable transit times (on average 5 days) to all major destinations.

For further information:

http://www.invitalia.it/site/eng/home/investment-opportunities/logistics.html

Italy’s Strategic Sectors Logistics 2/2

Italy’s Strategic Sectors Renewable Energy

The Italian renewable energy market is one of the world's

largest, ranking 5th globally (Ernst & Young Renewable

Energy Country Attractiveness Index 2011).

Italy legislature provides incentives for the production and

distribution of energy produced by all the renewable energy

sources (RES).

The solar photovoltaic (PV) sector is the dominant

technology thanks to the PV incentives and Italy’s

geographic position.

Other RES are growing: wind, geothermal, wave and tidal

power, biomass, biogas, landfill gas and sewage treatment

gas.

For further information

http://www.invitalia.it/site/eng/home/investment-opportunities/renewable-energy-sources.html

Directorate General for Country Promotion(Economy, Culture and Science)

Office I – Promotion and coordination of

international activities of the Italian economic

system, public/private partnerships, insurance and

financial instruments for foreign trade

Ministry of Foreign AffairsPiazzale della Farnesina 1

00135 Rome

℡℡℡℡ +390636912686

Email dgsp1@esteri.it

Contacts