FOREIGN COMPANIES, CONFINDUSTRIA-LUISS: CONTRIBUTION TO THE ITALIAN ECONOMY RISES TO 173 BN

Cimmino: focus on simplification, human capital, retention, Single SEZ and international promotion
Fossa: attracting foreign investment is no longer just an economic necessity, but above all a strategic choice for Italy

Rome, 7 May 2025 - They are over 18.400 foreign-controlled companies in our country and play an increasingly important role in Italy's economic development. They generate 173 billion euro added value, amounting to 17.4% of the national total, employing 1.7 million peoplethe 9.7% of the employed in Italy. This is what emerges from the VII Report of the Observatory of Foreign Enterprises (OIE) of Confindustria and Luiss, with the scientific collaboration of Istat, Liuc, Ice and Scuola Imt Alti Studi Lucca, entitled "Global competitiveness, local innovation. the role of foreign companies for Italy in the new international scenario"presented today in Rome at The Dome - Campus Luiss, on the occasion of the Annual Meeting of the Advisory Board for Foreign Investors (ABIE) of Confindustria, "Italy and foreign companies: innovating to compete in the new global scenario"..

In the last available year alone (2022), the contribution of foreign companies rose, compared to 2021, by 10.7% in industry and the 15.3% in services. The average company size also increased, from 95.8 to 99.4 employees per company. The Report therefore confirms the strategic value of foreign multinationals in the Italian production fabric, but also sends out a clear signal: attracting new ones requires systemic actionthat improves the competitive environment and removes the obstacles that still discourage international investment.

In 2022, compared to the previous year, the incidence of turnover of foreign subsidiaries was 21% compared to the total produced by Italian resident companies.

Foreign companies are confirmed as protagonists of innovation, exports and skilled employment. They invest in research and development over EUR 6 billion per year, amounting to 37.6% of the national totalwith a higher incidence in technology-intensive sectors. They are digitally more advancedbeyond the 77% has a high digital intensity, with a strong propensity to adopt theartificial intelligence. In the three-year period 2020-2022, 71.2% of foreign-controlled enterprises in Italy introduced innovations, compared to a national average of just under 60%. In terms ofexportforeign companies play a leading role with about 200 billion euro of exported goods in 2022, or more than one third of Italian exports - more than 35% of the national total - highlighting their centrality also in the country's international projection. The figure for exports to the United States is also significant: one third is made by companies with foreign capital.

The main investors come from United States (19.9% of the employed), France (19.4% of turnover) e The Netherlandswhich together account for the bulk of the value generated. In particular, The Netherlands and the United States lead in R&D investmentThis confirms the link between foreign capital and innovative growth.

The territorial picture remains concentrated: Lombardy, Lazio, Piedmont, Veneto, Emilia-Romagna and Tuscany collect 82% of the added value of foreign companies. However, the Single SEZ can represent a concrete opportunity to rebalancing the investment map and boost the competitiveness of the South. The weight of the international private equity fundsincreasingly active players in financing the transformation and expansion of Italian SMEs.

"Foreign companies are not just investors: they are engines of innovation, competitiveness and internationalisation. Without their contribution, the Italian economy would be less dynamic and less ready to face the major transitions underway. Our goal is to strengthen their roots and attract new ones, removing the obstacles that still discourage investment. To do this, we need to act decisively on five levers: simplifying bureaucracy to facilitate the investor, focusing on human capital to offer skills adapted to the technological challenges, strengthening retention activities to retain those who have already invested, enhancing the Single SEZ as an engine for the revitalisation of the Mezzogiorno, and promote Italy's image internationally as a stable, attractive and dynamic country. We want Italy to be recognised in the world not only for its manufacturing and cultural excellence, but also as a strategic platform for global investments with high added value,' he said. Barbara Cimmino, Vice President for Export and Investment Attraction and ABIE President of Confindustria.

Giorgio Fossa, President of Luiss University, he stated: 'In a complex geopolitical context, attracting investment is no longer just an economic necessity, but above all a strategic choice for Italy. Foreign-controlled companies are, in fact, an important vector of innovation, productivity, development of qualified skills and global connections. In this scenario, theForeign Companies Observatory, promoted by Confindustria and Luiss, confirms itself as a virtuous example of collaboration between universities and the business worldcapable of combining the rigour of academic analysis with the operational experience of companies to offer concrete proposals and effective tools for the international competitiveness of our country'.

L' Advisory Board Foreign Investors (ABIE) of Confindustria brings together the top executives of the main multinationals present in Italy and works to enhance the contribution of foreign-owned companies to the country's development. It collaborates with policy makers to identify tools and conditions to make Italy a priority and stable destination for new investments.