Italy is one of the 3 key economies within the Eurozone with a GDP worth EUR 1,72 billion (EU, 2017), accounting for 16% of the Eurozone market. The domestic market offers many opportunities, with a population of more than 60 million and a GDP per capita of EUR 27,700 (EU, 2017).
10 Reasons to invest
Italy represents a strategic gateway to 500 million consumers across the European Union and to 270 million in Northern Africa and the Middle East, and is the main thoroughfare linking southern Europe to central and eastern Europe.
Transport networks include 6,000 km of motorways (AISCAT, 2016), 1,350 km of high-speed rail (RFI, 2017) and strategic ports for maritime freight and transhipment along the Italian coast and islands.
Italy is the 2nd largest manufacturing economy in Europe, the 5th largest globally (World Bank, 2017) and the 9th largest exporter in the world, selling goods worth EUR 448 Billion in 2017 (ISTAT, 2017), maintaining a 2.9% worldwide market share (WTO, 2017) and holding a rare export trade surplus for goods (EUR 47.5 Billion in 2017) among developed countries.
Italy holds leading positions for trade surplus in 899 products out of 5,117 marketed goods (according to the most detailed breakdown of world trade by industry): 1st in 353 products, 2nd in 227 products and 3rd in 319 products (Fondazione Symbola, 2017).
Investing in Italy means having access to unique expertise in leading sectors, such as robotics, fashion, design and food.
Companies operating in Italy can also rely on extensive networks of SMEs and manufacturing clusters throughout the country, able to supply high-quality intermediate products specifically tailored to meet customers’ needs in a wide range of sectors (industrial machinery, metals, chemicals, plastics, paper, ceramics, textile, marine industries, etc.).
Continued global growth of the middle classes and the increasing numbers of tourist visits are resulting in increased demand for ‘Made in Italy’ products that are viewed as being prestigious and of high-quality.
Italy’s skilled workforce offers an overall better cost performance than its comparable European partners. The labour cost in Italy is in fact below the Eurozone average and, on an hourly basis, labour costs in Italy are about 22% lower than in France and 16% lower than in Germany (Eurostat, 2017).
31 Italian universities are ranked in the top 500 academic institutions in the Times Higher Education World University Ranking (THE, 2017).
Research and innovation are widely integrated into industrial processes with a long tradition of excellence in many fields of physics and engineering (e.g. robotics), life sciences (e.g. neurosciences), and social sciences and humanities (e.g. high-tech archaeological techniques).
Italian researchers, internationally recognized as highly productive in terms of articles and citations, actively participate and/or lead R&D European networks, such as the CERN physics laboratory, and top-level research infrastructures of transnational interest in sectors such as aerospace, systems biology, earth observation, nanobiotechnology, marine and maritime research, etc.
Italy also ranks 5th in the EU for the contribution of high-tech and medium-tech products to the trade balance as % of total exports & imports of products, and 6th for design applications (Eurostat, Research & Innovation Performance Survey, 2014).
Italian cities are overflowing with ancient monuments and treasures, and this - combined with its world-famous art, culture, music, food, and quality goods - gives Italy an unparalleled quality of life. Italy is ranked 1st worldwide for UNESCO World Heritage (53 sites as of end 2017). As a result, international tourist arrivals to Italy are more than 50 million annually, placing Italy 5th among the world’s top destinations (Untwo 2017).
As the 7th top global country brand relating to ‘experience’ (Nation Brand Index 2017), Italy inspires passion and interest over its heritage & culture, tourism and ‘Made in Italy’ goods. The ‘Made in Italy’ factor makes every brand unique and attractive.
Innovative investments: stimulate private investments in Industry4.0 technology drivers; increase private expenditure in research & development & innovation; expand open innovation relationships between mature companies and high-tech startups.
Skills: spread the I4.0 culture through educational and vocational training programs through Technological Clusters and Industrial PhDs; create Competence Centers and Digital Innovation Hubs.
According to the “FDI Confidence Index”, Italy ranked 10th overall in 2018, up from 13th in 2017 and 16th in 2016. Italy’s improvement was influenced by the several reforms enacted since 2014 to facilitate investments, including those to streamline labour policies and make starting-a-business easier (A.T. Kearney, 2018).
In 2016, Italy received USD 29 Billion of Foreign Direct Investments (including 181 investment projects), up from USD 19 Billion in 2015 and 135 projects (EY European Investment Monitor).
The Italian Association of Foreign Banks Index, measuring Italy’s attractiveness on data gathered from foreign managers and institutional investors, has increased from 33.2 in 2014 to 40.3 today.
In 2016, mergers-&-acquisitions in Italy reached EUR 49 Billion, the highest level since 2001 (Chiomenti Report 2017).
As one stop shop, the Italian Trade Agency takes care of the full investment cycle.
- Preinvestment information: market and business environment; taxes, legal system and labour market; incentive programme framework and financial scouting.
- Business set-up: location scouting & site visit; authorisations; permits for foreign investors; Human Resources research; Liaison Office with Public Administration.
- After care: assistance for new projects and expansion.