In January 2006, leaders from Italy traveled to Silicon Valley, Calif., for the purpose of sharing what Italy had to offer to U.S. companies looking to expand in Europe. U.S. companies already operating in Europe shared their own success stories of growth into the country, in addition to the overview from Italian officials. Prior to the trip to the United States, Italy approved a High-Tech Fund to provide venture capital assistance for companies looking to expand in Southern Italy.
“Italy has already bridged the gap and paved the way to attract inward investment in the ICT (information and communication technology) sector,” said Lucio Stanca, minister of Innovation and Technologies for Italy. “Particularly in recent years, the government pinpointed and bet on digital technologies and ICT as a key strategic factor to spur the economic growth and competitiveness of the country. As a result, we’ve stepped up specific funding measures aimed at implementing a comprehensive plan to enhance innovation in all sectors.”
ICT companies are sitting up and taking notice of Italy’s commitment to the sector. Between 2002 and 2005, more than 15 percent of foreign direct investment into Italy went to the ICT sector, according to data from Invest in Italy. During the same time period, U.S. companies started more than 700 European projects in the ICT sector, with 32 percent of that total in Italy. In March, Siemens and Microsoft announced that they would build a new facility in Genoa. Workers at the facility will focus on creating new IT solutions.
“We confirm that Genoa has the role of global headquarters for Manufacturing Execution Systems, offering a true example of technology excellence in our country through the capability of attracting foreign investments and developing strategic components for the value chain in Italy,” said Vincenzo Gori, CEO of Siemens Italia.
Earlier this year, the leader of a U.S. nanotechnology firm also cited Italy’s commitment to growth as a reason for its expansion. Naples, Fla.,-based Industrial Nanotech Inc. chose an Italian joint venture partner to help it expand into the European market through Italy. Industrial Nanotech produces a line of nanotechnology-based coatings called Nansulate.
“Europe, the Middle East and Asia represent three of our strongest markets,” said Stuart Burchill, CEO of Industrial Nanotech. “The cost of shipping product from our manufacturing facility in Denver to those high growth rate regions is becoming a limiting factor for our profit margins and pricing structure.
“Italy presents a tremendous opportunity as a location for manufacturing,” he pointed out. “The country is aggressively pursuing high-tech manufacturing partnerships and is centrally located in the region, with easy access to ports and railroads to ship product.”
Another sector undergoing solid growth in Italy is pharmaceuticals. The $25 billion (U.S. dollars) annual industry enjoys access to a skilled, educated work force and a favorable business climate in which to operate.
The segment accounts for 74,000 jobs, and the pharmaceutical sector has grown by twice the overall country’s average during the past decade.
In July, PharmaNet, headquartered in New Jersey, announced its European growth efforts, including an office in Milan, Italy. The company, a provider of drug development services, also opened facilities in Toronto and Brussels, Belgium.
“In support of the continued growth in demand for clinical development services and the trend toward more large, global studies, we are opening additional office locations and clinics to intensify our presence in the region and meet the needs of our clients around the world,” said Jeffrey P. McMullen, president and CEO of PharmaNet Development Group.
