The Observatory on Foreign Companies in Italy (OIE) has been established, an initiative of Confindustria’s Advisory Board for Foreign Investors (ABIE) in collaboration with Luiss Guido Carli University. The organization serves as a national reference point for collecting, analyzing, and disseminating data and information on foreign companies in Italy. “I am especially proud to present this project,” said Barbara Beltrame Giacomello, Confindustria’s Vice President for Internationalization and Attraction of Foreign Investment, at the Observatory’s first meeting, “Foreign Companies in Italy During the COVID-19 Pandemic: Insights on Resilience.” “Today, Italy lacks a scientific body dedicated to analyzing foreign companies that invest in our country. That’s why we decided to create a structure that bridges the gap between industry experts and scholars and the managers of the leading foreign multinationals in Italy who are part of Confindustria’s Advisory Board (ABIE),” explained Beltrame. “I am certain that the Observatory will help enhance the role of foreign investors in our country, creating the conditions to keep groups and multinationals in Italy and attracting new companies.”

“I am aware of the role played by foreign multinationals in Italy,” said Giancarlo Giorgetti, Minister of Economic Development, “not only in terms of economic impact but also from the perspective of environmental and social sustainability, thanks in part to the close ties that bind these companies to local communities and national production chains.” “The main drivers outlined in the PNRR (innovation, digitalization, youth, sustainability, and human capital),” the Minister explained, “are some of the areas that MNEs have been focusing their strategies on for several years now. That’s why we’re open to listening to their needs and are pleased to include the Observatory on Foreign Companies, unveiled today, among our partners on issues related to attracting and retaining foreign investment. This body combines the analytical and research capabilities of scholars with the expertise of managers.”  “Finally, as the government,” added Giorgetti, “we are committed to creating the conditions to overcome the structural shortcomings and inefficiencies that hinder the attraction of FDI to our country. First and foremost, I’m thinking of the excessive burden of bureaucracy, which has always been a disincentive to investing in Italy.”

“Luiss is proud to be part of this new Observatory, a key reference point for supporting foreign companies in creating value and analyzing the effects they have on the real economy and society,” said President Vincenzo Boccia. “Growth is the key prerequisite for reducing public debt, creating job opportunities for young people, and revitalizing Italy and Europe.”

“There are 15,519 foreign companies in Italy (up 1,141 in the last ten years), which is only 0.3% of all Italian companies. They employ nearly 1.5 million people (up 180,000 in the last ten years), which is 8.3% of the total workforce,” noted Marco Travaglia, President and CEO of Nestlé Italy and Coordinator of the Observatory. “However,” he added, “they are a crucial factor for our economy because they generate a turnover of about 600 billion euros, which is equivalent to 18.6% of that produced by all Italian companies, with an added value of 125 billion, or 15.5% of the national total. Multinational enterprises invest 3.7 billion euros in research and development, nearly a quarter of the total, accounting for over 14% of all investments made in Italy (2018 data).” Furthermore,” added Travaglia, “ for every euro invested by large foreign multinationals, the entire economy sees an overall growth in industrial production of about 3.3 euros, taking into account indirect and induced effects. In terms of employment, for every additional employee in large MNEs, 4.6 extra jobs are created across the entire economic system.”

The event was attended by, among others: Valentina Meliciani, Director of the Luiss School of European Political Economy; Roberto Monducci, Professional Affiliate of the Institute of Economics at the Scuola Superiore Sant'Anna in Pisa; Manuela Soffientini, President and CEO of Electrolux Appliances Spa; Pasquale Frega, President and CEO of Novartis Italia; Enrico Galasso, President and CEO of Birra Peroni; and Paolo Grue, President and CEO of Procter & Gamble.  

The OIE offers a unique blend of technical expertise in statistical and econometric analysis with the managerial acumen of top executives from foreign multinationals operating in Italy. Through its work, the Observatory aims to contribute to: the implementation of scientific studies assessing the economic, environmental, and social impact of foreign companies in Italy; the international comparison of foreign investment flows; the analysis of the systemic governance of the main foreign countries competing to attract investment; the identification of the most important economic sectors for foreign investment; and the analysis of successful business cases.