Europe’s second largest manufacturer remains a key player in fostering international collaboration and strengthening its global influence through close economic partnerships, particularly with the United States. In the wake of the pandemic, FDI in Italy skyrocketed, hitting a record $32.2 billion in 2022, signaling renewed confidence in the nation’s economic potential. The US remains a key partner in mutual economic growth, with US multinational companies leading in terms of foreign investment into Italy, making up 19.1% of its sales, contributing 20.1% to its added value and accounting for 23.7% of local R&D spending.
Italian universities, famous for their centuries-old traditions, are now becoming centers of technological progress. Dynamic and innovative cultural changes in society pose new challenges for educational institutions. Today’s most successful universities must prepare students for the challenges of the global digital economy. As pioneers in education, Italian institutions are actively integrating the latest technologies, including AI, into their educational programs, while maintaining academic rigor and cultural heritage. At first glance, combining such elements may seem challenging, but Italian universities are finding numerous benefits of the new approach.
Italian education is now at the forefront of digital change, offering students the opportunity to earn a European degree with a focus on innovation. Italy is proving that even the oldest universities can be laboratories of the future – without loud metaphors, but with real results.
Industria 4.0
Industria 4.0 is set to revolutionise the manufacturing sector with increased connectivity, automation and AI. The Italian market offers several financial incentives aimed at increasing the attractiveness of the country and the transition of companies towards the 4.0 paradigm. Introduced in 2015, the special Industry 4.0 legislation consists mainly of tax credits. These are primarily through encouraging R&D operations but also for 4.0 innovation introduced in the company. There are also incentives for intellectual property rights (IPR) valorisation, which involves the process of leveraging and commercialising IP for economic benefit. As an R&D incentive, it aims to maximise the value of intellectual assets through licensing, selling, or other strategic partnerships through extra deductions deemed at 110% of the IPR costs from the tax base. The plans are currently valid until 2025 but can be extended if sufficient demand is there of willing investors.
Green Economy
The Italian recycling rate of all waste excluding major mineral waste is the highest among the five main European economies at 67% and Italy boasts the second highest share (21.6%) of material recovered and fed back into the economy among the main EU economies. In 2021, Italy achieved a recycling rate of 73.3% for packaging, beating the EU target of 65% by 2030 four years in advance and nine years ahead of the target of 70% by 2030. The country has a National Recovery and Resilience Plan which is set to transform the national economic landscape, being one of the most comprehensive investment plans in Italy with the Circular Economy principles at its core. Italy has allocated €55.52 billion whose aims include urban waste management improvement, the purchase of 3000 zero emissions buses, establishing 40 hydrogen charging stations, upgrading 115 electricity substations to the smart grid, introducing digitisation into 45,000km of water network to reduce water losses, upgrading buildings to be more energy efficient, revitalising 14 cities including the development of 4500 hectares of urban forests and digitising 24 national parks and 31 marine protected areas.
Design
Italy has over 50,680 companies in the fashion and apparel sector, with recognised leadership in the EU. These companies generate a turnover of approximately €96.4 billion, accounting for 45% of the EU’s total. Fashion is the second sector by contribution to the Italian trade balance, with a high export propensity (75% of turnover). The country is the world’s second largest exporter of textiles after China with an export value of €66.6 billion. In March 2024, the country hosted the eighth edition of the Italian Design Day in the World. The event promotes Italian design abroad, supports exports and the internationalisation of companies in the sector, spreads knowledge about the technical and creative skills of Italian operators and attracts tourist flows to Italy. Since 20167, there have been 1,700 initiatives taken up by the Ministry of Foreign Affairs worldwide involving 570 designers. Italian space company Argotec announced plans in October 2023 to invest $25 million in a manufacturing facility in Maryland that will employ more than 60 people designing, building, testing and operating satellites. Argotec has worked extensively with the Italian Space Agency, the European Space Agency and NASA.
Sustainable Tourism
Italy has the two extremes of tourism: Rome is the world’s fourth most popular tourist city and Venice is now charging tourists to enter,** but local political pressure and a growing awareness of the exploitation of resources is leading the drive to sustainable tourism. A 2023 study by Rome Business School found that tourists increasingly desire an experience that is attentive to sustainability, seeking ‘smart cities’ that are accessible and highly innovative in terms of digito-cultural usability. Train travel is becoming more popular among tourists and Italy has developed the world’s first high speed train to receive environmental impact certification. The Ministry of Tourism is promoting Ecomondo in November 2024. This year’s event will focus on reducing carbon emissions, the management of marine resources, the promotion of the circular economy and renewable marine energy. Italy’s blue economy is worth €70 billion and supports 400,000 workers according to EU data, especially in Liguria and Sicily.
