Over the past ten years, the contribution of multinational corporations to the Italian economy has risen sharply. In fact, from 2009 to 2019, the number of their employees grew by 23.6% (+289,000 employees), reaching 1.5 million employees in 2019. This occurred alongside an overall loss of about 176,000 jobs recorded in our country during the same period. The value added generated by these companies is also on the rise: with an increase of 55 billion euros, it reached 134 billion euros, a figure that accounts for nearly 30% of the increase in value added across the country as a whole. Their turnover also grew significantly, reaching 624 billion euros in 2019. This 40.4% increase accounts for 31% of the total growth in turnover among resident companies. Their contribution to R&D is also highly significant. At 4.3 billion euros in 2019, it accounts for 26% of all private research conducted in Italy, providing a strong boost to innovation.

These are the findings from the report “Foreign Companies in Italy and the New Paradigms of Competitiveness,” prepared by Confindustria’s Foreign Companies Observatory and LUISS. It’s the first report to offer a comprehensive picture of multinational companies in Italy, analyzing their impact on the Italian economy, their structural characteristics, their positioning within global value chains, and their awareness of environmental sustainability issues.

The analysis reveals that foreign multinationals are able to respond more quickly to new challenges thanks to organizational models based on managerial leadership, streamlined and efficient corporate governance, their large size, and their place in global value chains. In fact, these companies have proven to be particularly resilient in the face of the pandemic crisis, during which they even increased their share of intangible investments.

The report also shows that the profiles of foreign multinationals operating in Italy are in line with the new economic paradigm, which combines growth, social development, and environmental awareness. These goals are well integrated into their business strategies and across all corporate functions, enabling foreign companies to also serve as a significant driving force for SMEs and the regions where they operate. Finally, foreign-owned companies are particularly inclined to adopt actions and behaviors focused on environmental sustainability, resulting in an impact level nearly 8% higher than that of other companies.

“Multinational companies, which often lead supply chains, are deeply integrated into both our production structure and the institutional and regional context where they operate. They are an integral part of our national industrial vocation.” This is according to Barbara Beltrame Giacomello, Vice President for Internationalization and President of Confindustria’s Foreign Investors Technical Group. “Global value chains are under severe strain due to rising energy costs, challenges in sourcing and procuring raw materials, and critical logistical issues. This will lead to a rethinking of the global value chains themselves, where Italy, with a systemic approach that sees the supply chain as the driving force between domestic and foreign-owned companies, could seize significant opportunities.”

“Innovation, resilience, high productivity, a focus on sustainability, and a strong inclination to invest in research and development and human capital: these are the strengths of international companies in Italy, as captured in the Report by the Foreign Companies Observatory. They paint a picture of an ecosystem that makes a fundamental contribution to the country’s economic growth.” Luiss President Vincenzo Boccia emphasized, continuing: “Today, more than ever, research plays a central role in analyzing the complexity of trends and phenomena in our society, understanding their strengths and weaknesses, and proposing strategies and solutions that can have a positive impact to accelerate the development and competitiveness of our economy.”