Rome, May 5, 2023 - There are 15,631 foreign-controlled companies operating in Italy, and they make a significant contribution to the national economy, serving as strategic partners for the growth of the country’s competitiveness. These companies employ 8.8% of the workforce, generate 19.0% of turnover, 16.5% of value added, and 26.8% of research and development spending, and account for 32.3% of exports and 50.3% of imports of goods.

These are the figures from the Third Report by the Confindustria and Luiss Foreign Companies Observatory, in collaboration with ISTAT, the IMT Alti Studi Lucca School, and the ICE Agency, titled “Foreign companies in Italy: between signs of recovery and new global risks.” The report was presented today in Rome at The Dome – Campus Luiss during the first Annual Meeting of Confindustria’s Foreign Investors Advisory Board (ABIE), which was titled “Global companies and the world to come.” The Report not only provides updated data on the characteristics of multinational companies within the Italian production system, but also analyzes their contribution to exports, key supply chains, and the regions where they operate. This analysis takes into account the “double crisis” caused by COVID-19 and the combined impact of rising inflation and geopolitical tensions.

The Report reveals that foreign companies that have invested in Italy show a lower propensity to divest between 2019 and 2022 compared to other global markets, preferring to remain in the country with a presence primarily downstream of international supply chains. The reorganization of intra-group supply chains beyond national borders indicates a move toward simplification, with relatively shorter and more geographically differentiated supply chains. In fact, some projections suggest that, despite Italy being significantly impacted by the pandemic, there is no intention for headquarters to divest their Italian subsidiaries.

Furthermore, the Report confirms that, compared to 2021, foreign-controlled companies in Italy saw a 21% increase in exports to foreign countries in 2022. This represents the highest growth among all types of companies operating in the country.

“Foreign-owned companies are crucial to our country’s growth, and the Observatory’s work clearly identifies why. Our proposal to the government is to organize an annual meeting with global CEOs, as is already done in many of our competitor countries, to attract and plan strategic investments for the near future. We are ready to take action immediately and collaborate in organizing the initiative,” stated Barbara Beltrame Giacomello, Confindustria’s Vice President for Internationalization and President of ABIE.

“The Observatory’s report on foreign companies in Italy provides a truly interesting picture of the phenomenon, confirming its vital importance for the growth of the national economy. Researching, classifying, and delving deeper into the aspects that can best contribute to creating connections and collaborations between companies and industrial systems is a challenging task for a university like Luiss, which is increasingly committed to establishing its strategic role as a hub for Euro-Mediterranean education,” said Luiss President Vincenzo Boccia.

“The Report’s data confirms that foreign-controlled Italian companies are playing an increasingly crucial role in the development of our country’s economy. To provide a snapshot of the sector, in 2020, the 15,631 foreign-controlled companies operating in Italy generated a turnover of nearly 548 billion euros and an added value of around 122 billion euros. In the latest edition of the report, we further consolidated the results and analyzed the historical data. This allows us to state that foreign-owned companies, which are increasingly rooted in the region and interconnected with the local communities where they operate, stand out for their greater propensity to invest and innovate. They also bring a new corporate culture to the country, with widespread benefits,” said Marco Travaglia, Coordinator of the ABIE Observatory and President and CEO of the Nestlé Group in Italy.

The Foreign Investors Advisory Board (ABIE) is Confindustria’s technical group comprised of the top executives from leading international companies with offices in Italy. One of its goals is to enhance the role that foreign-owned companies play in our country, emphasizing the connection between foreign investors and the Italian business world. ABIE also supports policymakers and technical bodies by providing guidance on factors that can help promote Italy as a leading business destination.

The Report can be downloaded from the Foreign Companies Observatory's website: click here