Italy

ItalianRepublic consists of Municipalities, Provinces, Metropolitan Areas and Regions.

Italy has twenty Regions, five of which have a special status (Valle d'Aosta, Trentino-Alto Adige, Friuli-Venezia Giulia, Sicilia and Sardegna).

The Regions are subdivided into 103 Provinces and 8101 Municipalities.

Piedmont

As part of a network of international technology exchanges and trade, with a specialised and innovative production sector, Piedmont offers top-ranking competencies in various sectors, from the automotive industry to aerospace, from information and communication technology to logistics and bio-technologies.

The region is able to offer Italian and foreign businesses a network of external economies consolidated by lengthy experience, made up of professional skills, service networks, supply systems, technology innovation centres and education/training facilities.

With its solid industrial tradition, Piedmont is a region strongly linked to manufacturing, enhanced by the diversification and expansion of its economic structure.

The industrial districts are a further confirmation of the dynamism and diversification of the region's economy.

With over 400,000 companies, more than 700 of them foreign, Piedmont produces 8.5% of the entire nation's gross domestic product, for over € 96 billion. The region's exports, worth € 30 billion, represent 11% of the national total. In terms of income and consumption, Piedmont is clearly above the national average and in line with Europe's richest regions.

Piedmont is Italy's second region for foreign investment and one of the top thirty five out of more than two hundred in Europe. Inward investment represents 13% of the national total and 16% of outward investment.

CENTRE - Economy

Dynamic regional economy

In 2000 the Centre region accounted for 3.6% of the GDP of France. In terms of GDP per inhabitant, the region is losing ground to other metropolitan regions. With a GDP per inhabitant of 20 603 euro the region ranks ninth on the national scale, and this figure is 12% below the national average. At the origin of this relative decline is the falling productivity of its workforce, which is perceptible since the recession of 1993. One factor is below national level of job skills and training of the working population, and the low rate of business start-ups: 9.4% in 2001 compared to the national average of 11.1%.

In the agricultural sector, the contribution of the region represented 5.6% of France's gross value added of the agricultural sector in 2000. The region's contribution to other branches was 4.5% of the France's industrial gross value added, 4.0% of the construction industry, and 3.0% market services.

France's leading cereal grower

The Centre is still a major agricultural region with highly-diversified connected industries. The Centre is France's leading grain grower accounting for 13.6% of total production in 2000, with the second biggest regional producer - Picardie - behind with 8.4%. The Centre region produced the highest share of the country's wheat and oilseed plants: 15.6% and 18.7% respectively, and the second highest share of the country's barley production (14.9%). Intensive, large-scale production on large modern holdings began in Beauce and north-eastern Berry, and has spread rapidly to other districts. Stock-raising accounts for 20% of the region's farm production. The Centre boasts the largest cattle-market in France, at Sancoins (Cher d¨¦partement). Finally, more than 12% of the value of production comes from vines, orchards, vegetables and flowers. These are concentrated along the Loire valley and provide a driving force in the region's agricultural economy.

Nevertheless, the share in terms of value added accounted for by the agricultural sector of the Centre region's economy is falling. In 1995 it represented 5.1% and in 2000 it accounted for 4.4% of gross value added.

Industry makes up 26% of the region's value added

Compared to the other French regions, industry makes up a considerable share of total gross value added produced by the Centre region, accounting for 26% in 2000.

The region's industrial structure shows a number of distinguishing features, notably a diversified sectoral breakdown, with a sizeable network of small and medium-sized businesses and specialist subcontractors, and a dependence on foreign capital (23.2% of businesses in 1999).

The region's industrial dynamism relies more on the capital and consumer goods sectors, both of which have made a major effort to modernize. The production of the intermediate goods and capital goods sectors make up the biggest shares of the gross value added generated by industry (33.3% and 23.5% respectively in 2000). Even if of lesser importance the percentage share of the production of consumer goods in the regional industrial value added was however the biggest after Ile-de-France (19.3%).

The Centre's industry is the result of the decentralization of the 1960s and 1970s. A number of centres and specializations have emerged in particular:

- the pharmaceutical, cosmetics and perfumery industries: these are located mainly along the valley of the Loire;
- the rubber and plastics industries in Tours, Bourges, Orl¨¦ans and Montargis;
- metalworking and mechanical engineering, supplying the motor industry;
- electrical and electronic engineering, concentrated in the Eure-et-Loir and Loiret d¨¦partements;
- aerospace and arms in Bourges, textiles and clothing in Indre, and publishing.

Looking simply at total figures, the region's industry invested heavily in the 1970s and 1980s. The bulk of this is nevertheless attributable to the construction of nuclear power stations along the Loire. In 1999 the region generated 19% of all the nuclear energy produced in France. The region Centre is among the only 5 regions to produce more energy than it consumes.

The crisis in the building and civil engineering industries was particularly severe in the Centre, but later moderated under the effects of major projects such as the high-speed train (TGV) and motorway construction. In 2000 the construction industry accounted for 5.1% of the region's gross value added.

Market services less developed at regional level

In 2000, gross value added of services as a whole generated by the Centre region accounted to 3.2% of the nation's GDP.

At regional level, market services accounted for 42.3% of gross valued added in 2000, compared to the national average of 51.6%. Broken down by sector, wholesale and retail accounted for 14.8% of gross value added of services, above the national average. The share of value added of financial intermediation and real estate (22.8%), transport (4.6%), services to businesses (16.4%), and personal services (7.1%) were all below the national average. Social and collective services were above the national average: 34.3% against 28.1%.

The garden of France

With its cathedrals (Chartres) and the chateaux of the Loire (Chenonceaux and Chambord), the Centre region has an architectural heritage of world-wide renown. Together they form one of the world's leading centres for cultural tourism, attracting many million visitors each year. In 2000 nights spent in hotels the region amounted to nearly 6 million and accounted for 3.2% of total nights in hotels in France.

Visitors to the chateaux tend to remark on the close links they perceive between the beauty of the architecture and that of the environment. The Loire valley is the 'garden of France' not only for its fruit-and vegetable-growing, but also because of the wealth of images it conjures for visitors.

Walking, cycling and horseback tourism have developed over the last 10 years. Certain lakes have been developed for water sports and are used regularly, but are still a great way from being used to capacity.

1 524 100 vehicles were registered in Centre in 2001, of which 83.6% were private cars. In 2001 there were 12.0% more private cars than in 1990. In 2000 the road network comprised 1 612 km of main roads and 688 km of motorways.

Investing in Italian aerospace makes sense for hi-tech players.
Italy is a truly global player, leading the field in helicopter production and contributing key elements to the International Space Station's embryonic space laboratory.

The sector is graced with world class performing companies, in an industry developing at a skyrocketing pace. Backing up business is a responsive university structure replete with dedicated aerospace faculties and departments, as well as internationally renowned research centers.

• 10 billion Euro annual turnover
• Employing some 50,000 specialists, researchers and workers
• Over 1.3 billion Euro invested in R&D and production.

Italy has a long history of designing automobiles and automotive components. It all began with Leonardo da Vinci who designed a series of vehicles and machines with technical solutions which are used even today. These include a type of differential, ball bearings and a three stage gear shift.
Just over a century later, in 1629, another Italian, Giovanni Branca, was the first to design a semi-mobile vehicle powered by steam and this design was later realized by Isaac Newton in 1680.
Besides these breakthroughs, the first prototype of an internal combustion engine was made in 1858, in Florence, by two other Italians: Eugenio Bersanti and Felice Matteucci.
At the end of the century, when automobile factories started to become a reality, Italy was the first in line, in 1885, with Bianchi in Milan followed in 1898-99 by Isotta Fraschini and OM in Milan and by FIAT in Turin. The new century saw the birth of Itala and Lancia in Turin, of Alfa Romeo in Milan and of Maserati in Bologna in the period between 1904 and 1912. In the 1940s the legendary Ferrari was created along with Abarth and Moretti. While Lamborghini, Giannini and Innocenti saw light in the Sixties.

It is also due to this long tradition that Italy is among the top five auto-manufacturing countries in Europe with more than one million automobiles produced per year.

The Automotive sector is Italian manufacturing's star performer also, and especially, because of the important contributions it makes to R&D on the national level and to its role in the introduction of new technologies on the international scene.

One indicator of the importance of this sector is the massive presence of companies, universities and research centers in the relevant public procurement programs. For example, the data concerning participation in the Sixth Framework Program for Technological Research and Development in the European Union, 2002-2006, on "Sustainable Development and Global Changes - Sustainable Transportation" showed that, in comparison to other countries, Italy not only made a greater number of proposals but that the majority of these received financing. The relevant public tenders mainly concern the new challenges posed by sustainable transportation but also include design and manufacturing techniques for the reduction of vehicle weight and for vehicle recycling as well as new transmission systems and fuels.

With Europe accounting for over a quarter of global chemicals production, Italy is its third largest chemical producer and a major player on the international market. Exports play a key role in the Italian chemicals sector, with a higher proportion of export-oriented firms than any other industry.

The sector embodies the dynamic side of Italian industry, with small and medium-sized enterprise at the vanguard, spending well above-average amounts on R&D and training and employing one of the country's most highly qualified workforces.

• Third largest industrial base in Europe
• Major presence of foreign multinationals with 35% market share
• Some 6,000 graduates annually in chemicals/pharmaceutical related disciplines
• Firm emphasis on innovation and research

Popular the world over, Italian food and the Italians' passion for what they eat makes the country a magnet for investment in the food and drink sector.

Italy is among the top four countries in Europe in the production of food and beverages.

Playing a central role in the Italian economy, the sector's value added accounts for about one fourth of the industry's turnover.

As well as the obvious uniqueness of Italian food and drink products their reputation is built on high standards of quality and safety. Many items are internationally renowned and make a valuable contribution to the strong image of Italian products abroad.

Combining ancient traditions and the latest technical innovations, the sector is rife with high performing companies, both SMEs and large industrial groups.

• Leading European market for both production and consumption
• World-renowned products and high standards of excellence
• Vigorous commitment to quality and to innovation
• Presence of some of the sector's biggest global players

Italy is one of the world's market leaders in Life Sciences. The business environment for foreign companies is traditionally welcoming and offers an ideal setting for the development of innovative investment projects.

Italy's Life Sciences industry is the third largest in Europe in terms of turnover and number of employees. The sector is going through a period of transformation that places ever greater emphasis on innovative offshoots connected with biotechnology developments in the Health field.

Spending on R&D is on the rise and the number of new biotechnology ventures continues to grow, frequently as the spin-offs of academic work or of a foreign industrial presence in Italy.

This process of change, aided by the existence of research centers with a proven track record of excellence in Healthcare Research and ever stronger ties between the academic and business worlds, has already given life to several Biotechnology clusters including some specialized in the fields of Diagnostic and Therapeutic Trials. Recent applications in the Biomedical, Bioinformatics, Biomechanics, and Nano-biotechnology fields, in particular, are drawing the interest of investors.

With the world getting smaller, the globalization and liberalization of markets is significantly increasing demand for the movement of merchandise, goods and services, and for the wide range of activities in the logistics sector. Under this scenario, Italy rates not only as an important source and target market for goods, but also as a major logistic platform of trade exchange between the Mediterranean and Northern Europe.

Thanks to its strategic location, Italy serves as a junction for intercontinental flows between Asia, Europe, and North America.  An additional advantage lies in Italy's central position in the Mediterranean, bordered by several industrializing countries with high growth potential. Further, with EU enlargement likely to lead to rising commercial trade in Europe, particularly from East to West, Italy is well placed to support and benefit from this upswing.

• Largest number of harbors and connections with other Mediterranean countries
• 148 ports scattered along 7,400 km of coastline
• Modern infrastructure under further expansion with the 125 billion Euro National Plan for Strategic Infrastructure (PNIS)
• Annual turnover estimated at 120 billion Euro
• 160,000 businesses active in transport and logistic services
• Strong investment of foreign multinationals over the last few years

With over 1,200 people directly involved and 70 million Euro of R&D funding, Italy is shaping up to be a major world player in nanotechnology.
Despite a delayed start, there is increasing enthusiasm and a significant commitment to narrowing the gap with other developed countries and boosting Italian competitiveness in the sector.

The quality of Italian nanotechnology research continues to impress. Results in certain sub-sectors are extremely advanced, often surpassing those in leading countries, one example being hybrid nano-electronics with biotechnology components, eg, haemoglobin molecules.

Owing to the growing global relevance of nanotechnology in Italy, over one thousand participants from all over the world attended a meeting of the EuroNano Forum in December 2003.

• Significant nanotech investment, both private and public sector
• Dedicated research centers for nanotechnology
• Some 1,000 researchers active in the field
• Over 77,000 graduates in related scientific disciplines
• Large demand for nanotechnology applications from Italian industrial clusters

With annual revenues of some 70 billion euro accounting for 5.4% of GDP, more than 33,000 hotels and 400,000 jobs, the tourism sector is one of the driving forces of the Italian economy. Thanks to Italy's remarkable artistic, historic, and cultural heritage, combined with its internationally acclaimed excellence in terms of wine, food and the natural environment, the country offers enormous potential for growth and exceptional investment opportunities.

Specifically, the sector generates an ever-increasing demand for investments aimed at improving the quality of the services on offer and consolidating the degree of integration in terms of structural dimensions and internationalisation.

• An enviable geographical position: a natural port for goods and passengers in the heart of the Mediterranean area
• A healthy and pleasant climate throughout the year: dry and sunny for the most part, with brief relatively cold periods in the winter months
• Offering some of the world's richest cultural and natural resources
• Among the top five most sought-after tourist destinations in the world, with more than 37 million arrivals in 20041
• More than 31 million visitors each year to the country's museums2
• The incidence of revenues from the economy of travel and tourism on domestic GDP stands at 12%
• Spending on tourism equal to 10.8%3 of final domestic consumption
• Excellent investment opportunities in accommodation infrastructure and services, particularly with regard to transport and reception facilities (restaurants, shops, leisure).