N 06/July 2018
Rilasciato il 19 31 febbraio luglio 2018 2018 / Issued / on on 3119 July February 2018 2018 Questo booklet è stato chiuso con le le informazioni disponibili al al 3130 January luglio 2018 This booklet has been draft using information availableasasof of 31st 30th January, July 2018 2018
Contents Executive summary 5 1. Italy and Lombardy: perception and reality 7 Italian public debt: 131.8% of GDP but only 68% of household net financial assets Italian primary surplus: the highest cumulated value Explicit and implicit debt: Italy seventh in the EU Sustainability Ranking Italian manufacturing export performance 2000-2017 Italian manufacturing in global rankings 2. Lombardy and Milan: business structure 13 Lombardy, the leading Italian region: in 2016, 22% of the Italian GDP Lombardy, the leading Italian region in terms of manufacturing gross value added 250 manufacturing medium enterprises located in Milan, 1,000 located in Lombardy 90 large enterprises in Milan Milan the prime location for 4,200 multinational companies operating in Italy Over 15,000 knowledge-intensive startups born in Lombardy (2007-2014) Export: Lombardy vs other European regions Export: Lombardy s main trade partners Openness to international trade: outdoing German regions also worth mentioning: the importance of export over total turnover 3
Contents 3. Lombardy and Milan: strengths 24 Business R&D investments in Lombardy: in line with German regions Research and innovation Innovation: the role of Lombardy in Italy Strong presence of high-quality public and private research centers Universities: high concentration (13) and international attractiveness Universities: Politecnico of Milano and Bocconi examples of excellence Milan, a driver of Italian creativity Labour market: a better performance than the Italian average Labour market: high female employment rate What makes Lombardy and Milan a knowledge hub? 5 typical vocations for Milan 4
Executive summary 5
Executive summary Who we are Assolombarda Confindustria Milano, Monza e Brianza, Lodi is the largest local entrepreneurial association in Italy and the most important association within the Confindustria system, the National Confederation of entrepreneurial associations. Italy: perception and reality «Made in Italy» is one of the most famous brands in the world. But Italy proves capable of competing in international markets setting records also in less renowned fields. To name a few: the growing export performance of the manufacturing sector (448 billion euros in 2017); the manufacturing trade surplus and the share of manufacturing value added, where Italy ranks fifth and seventh worldwide respectively Lombardy and Milan: business structure and strengths A solid and highly diversified economy (from industry to trade, to services, to finance) is the main feature of Lombardy and Milan: 25% of Italian exports and manufacturing are produced within a range of 60 km. Milan stands out for its international stance, the city being home to over 4,200 MNCs for a total workforce of 431,000 employees and a turnover of 208 billion euros. These multinational companies are well-integrated in a dynamic system connecting small, medium and large firms, 90 of which boast a turnover of over 1 billion euros, a number higher than in Munich (61 firms) and Barcelona (39). Lombardy is also an attractive place for knowledge-intensive startups (over 15,000 between 2007 and 2014). Innovation and qualified human capital make of Lombardy and Milan a knowledge hub. This territory is home to the main Italian research centers, 12 CNR (Italian National Research Council), 19 IRCCS (Institutes for Treatment and Research) and 13 universities attracting 270,000 students, of which almost 13,000 are foreigners. Last but not least, Lombardy and Milan are specialized in business supply chains and sectors which enjoy international prominence and a high growth potential, these typical vocations being identified with the Life Sciences, Agribusiness, Manufacturing 4.0, Art, culture and design, and Finance. Of particular relevance, Lombardy and Milan are the leaders in the national creative industry. Thanks to its rich and blooming cultural offer and its excellences in the fashion and design industry, Milan has indeed established itself as the capital for arts, culture and design. 6 Booklet Italy, Lombardy and Milan
1. Italy and Lombardy: perception and reality
68 131,8 Italy and Lombardy: perception and reality Italian public debt: 131.8% of GDP but only 68% of household net financial assets Public debt as percentage of GDP - 2017 Public debt as percentage of household net financial assets (*) - 2016 250 200 150 250 200 150 100 100 50 50 0 NL FI DE IE AT UK FR ES BE PT IT EL 0 NL UK BE DE FR AT IT ES FI IE PT EL (*) Financial assets held by households include: currency and deposits, securities other than shares, loans, shares and other equity, net equity of households in life insurance reserves, net equity of households in pension funds, prepayments of premiums and reserves against outstanding claims Source: Assolombarda on Eurostat data 8 Booklet Italy, Lombardy and Milan
Italy and Lombardy: perception and reality Italian primary surplus: the highest cumulated value Cumulated primary balances (current values - billion euro) 800 600 400 200 0-200 -400-600 -800 694 449-286 -436-586 Germany France Italy UK Spain Source: Assolombarda on Eurostat data 9 Booklet Italy, Lombardy and Milan
-12 64 85 99 105 123 130 144 146 157 177 198 206 217 249 260 280 288 288 298 309 326 406 417 489 490 619 697 915 Italy and Lombardy: perception and reality Explicit and implicit debt: Italy seventh in the EU Sustainability Ranking EU Sustainability Ranking - 2017 (explicit and implicit debt as % of GDP) 1100 900 Explicit debt Implicit debt 700 500 300 100-100 Source: Assolombarda on Stiftung Marktwirtschaft data 10 Booklet Italy, Lombardy and Milan
Italy and Lombardy: perception and reality Italian manufacturing export performance 2000-2017 Italian manufacturing export (billion euro) Export record level 260 273 269 265 284 300 332 365 369 292 337 376 390 390 399 412 417 448 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Source: Assolombarda on Istat data 11 Booklet Italy, Lombardy and Milan
Italy and Lombardy: perception and reality Italian manufacturing in global rankings Manufacturing trade surplus - 2016 (US billion dollar) Share of global manufacturing value added - 2016 (% on current prices - US dollar) 1,066 29.5% 359 202 175 5 th worldwide 100 19.0% 7 th worldwide 8.4% 5.9% 2.8% 2.5% 2.3% China Germany Korea Japan Italy China USA Japan Germany Korea India Italy Source: Assolombarda on WTO and CSC data 12 Booklet Italy, Lombardy and Milan
2. Lombardy and Milan: business structure
Lombardy and Milan: business structure Lombardy, the leading Italian Region: in 2016, 22% of the Italian GDP Area (sq. km.) Population (1/1/2018) Workforce (thousand, 2017) GDP (nominal, million euro, 2016) Value Added (per capita, 2016) Enterprises (2017) R&D expenditure (million euro, 2014) Import (million euro, 2017) Export (million euro, 2017) Lombardy Italy Share 23,864 302,073 7.9% 10,036,258 60,483,973 16.1% 4,399,374 23,023,959 19.1% 368,582 1,680,523 21.9% 32,860 24,884-815,956 5,150,149 15.8% 4,625 22,291 20.8% 124,737 400,659 31.1% 120,334 448,107 26.9% Gross Domestic Product % - 2016 Rest of Italy 78% Value Added per capita - 2016 (euro) (*) 2015 45,652 32,860 Milan 9% Lombardy 22% 24,884 Milan* Lombardy Italy Source: Assolombarda on Istat and Prometeia data 14 Booklet Italy, Lombardy and Milan
Lombardy and Milan: business structure Lombardy, the leading Italian region in terms of manufacturing gross value added Lombardy workforce by business sector - 2015 Manufacturing gross value added at basic prices by region - 2015 (billion euro) Manufacturing 25.2% Information and communication 4.0% Real Estate activities 2.1% 139 135 65 Other 37.6% Professional, scientific and technical activities 8.6% 35 33 32 28 24 Trade 18.3% Financial and Insurance activities 4.2% Source: Assolombarda on Istat and Eurostat data 15 Booklet Italy, Lombardy and Milan
Lombardy and Milan: business structure 250 manufacturing medium enterprises located in Milan, 1,000 located in Lombardy Number of manufacturing medium enterprises, with 50 to 499 persons employed and a sales volume of 15 to 330 million euro (excluding subsidiaries of large corporations or those under foreign control) In Milan 7% and in Lombardy 31% of the 3,300* medium enterprises active in Italy * Italian medium-sized manufacturing companies account for approximately 15% of the domestic manufacturing value added and of Italian exports Source: Assolombarda on Mediobanca Unioncamere data 16 Booklet Italy, Lombardy and Milan
Lombardy and Milan: business structure 90 large enterprises in Milan Other Finance, insurance and real estate Information and communication Trade and transport Construction Manufacturing and energy Numer of enterprises with turnover > 1bn (2015) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 20,8% 18,0% 23,1% 20,8% 4,2% 12,5% 4,2% 36,1% 8,2% 37,5% 34,4% Stuttgart 24 Munich 61 3,3% 23,1% 7,7% 6,7% 7,7% 8,9% 7,7% 11,1% 12,8% 10,3% 18,9% 2,2% 53,8% 53,8% 52,2% Lyon 13 Barcelona 39 Milano 90 Source: Assolombarda on Orbis data 17 Booklet Italy, Lombardy and Milan
Lombardy and Milan: business structure Milan the prime location for over 4,200 multinational companies operating in Italy Foreign multinational enterprises 4,224 foreign multinational companies located in Milan (32,4% of those active in Italy) with 207,692 employees and 208 billion turnover Source: Assolombarda on Milan Chamber of Commerce data 18 Booklet Italy, Lombardy and Milan
Lombardy and Milan: business structure Over 15,000 knowledge-intensive startups born in Lombardy (2007-2014) 15,351 knowledge-intensive startups - out of 66,040 located in Italy - born in Lombardy (2007-2014) Arts, culture and creative activities 6,9% 7,5% 6,6% 17,2% 11,7% Engineering & architectural services and R&D 25,8% 25,7% 31,7% 17,7% 23,7% Advisory services Software Machinery and special tools Science-based industry 27,8% 30,9% 39,3% 39,2% 24,2% 26,8% 23,5% 26,3% 14,9% 20,0% 9,6% 14,4% 7,0% 6,9% 4,9% 3,2% 2,6% 0,6% 0,9% 2,6% Baden- Bayern Rhône-Alpes Cataluña Lombardia Württemberg Source: Assolombarda and Politecnico of Milano, Booklet Startup n.2/2017 19 Booklet Italy, Lombardy and Milan
53 42 49 55 55 53 53 57 57 60 51 41 49 55 59 59 60 64 65 71 104 82 94 104 108 108 110 111 112 120 123 149 153 172 175 173 181 196 191 201 154 122 144 160 165 166 169 178 182 192 Lombardy and Milan: business structure Export: Lombardy vs other European regions Export (billion euro) Lombardia Baden-W. Bayern Auvergne-Rhône-Alpes Cataluña 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Source: Assolombarda on Istat, Destatis, Idescat, Douanes et droits indirects data 20 Booklet Italy, Lombardy and Milan
Lombardy and Milan: business structure Export: Lombardy s main trade partners Lombardy s main trade partners - 2017 (million euro) Repositioning on extra-eu markets: the case of Milan - 2017 Export 2017 % change 2017-2008 1 Germany 16,018 12.2% 2 France 11,687-4.1% 50 40 35.9 Export Milan (billion euro) World EU-28 41.1 3 USA 9,072 54.4% 4 Spain 6,634 2.5% 5 Switzerland 6,511 30.1% 6 United Kingdom 5,329 12.7% 7 China 3,957 64.8% 8 Poland 3,536 34.7% 9 Netherlands 2,880 9.7% 10 Turkey 2,742 34.4% 30 20 10 0 45% 61% 55% 39% Source: Assolombarda on Istat data 21 Booklet Italy, Lombardy and Milan
extra-ue extra-ue extra-ue extra-ue extra-ue Lombardy and Milan: business structure Openness to international trade: outdoing German regions Manufacturing exporters - 2015 (% of firms) 73.2% 76.3% 46.8% 33.6% 57.8% 51.2% 40.4% 38.4% 53.2% 56.1% Baden-Württemberg Bayern Rhône-Alpes Cataluña Lombardy Source: Assolombarda, The performances of European firms: a benchmark analysis, Report 2017 22 Booklet Italy, Lombardy and Milan
extra -UE extra -UE extra -UE extra -UE extra -UE Lombardy and Milan: business structure also worth mentioning: the importance of export over total turnover Export turnover of manufacturing firms - 2015 (% over total turnover) 40.3% 26.8% 27.2% 26.2% 25.9% 14.7% 9.3% 8.6% 9.4% 7.9% Baden-Württemberg Bayern Rhône-Alpes Cataluña Lombardy Source: Assolombarda, The performances of European firms: a benchmark analysis, Report 2017 23 Booklet Italy, Lombardy and Milan
3. Lombardy and Milan: strengths
Lombardy and Milan: strengths Business R&D investments in Lombardy: in line with German regions R&D activity in manufacturing firms - 2013-2015 (% of firms) 41.9% 45.9% 43.7% 49.8% 33.4% Baden-Württemberg Bayern Rhône-Alpes Cataluña Lombardy Source: Assolombarda, The performances of European firms: a benchmark analysis, Report 2017 25 Booklet Italy, Lombardy and Milan
Lombardy and Milan: strengths Research and innovation Highly cited scientific articles per million inhabitants Patents per million inhabitants 32 27 22 31 23 470 443 549 564 12 13 11 10 8 153 152 69 74 140 144 2007 2015 2007 2015 2007 2015 2007 2015 2007 2015 Baden-W. Bayern Rhône- Alpes Cataluña Lombardy 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 Baden-W. Bayern Auvergne - Rhône- Alpes Cataluña Lombardy Source: Assolombarda, Booklet Ricerca e Innovazione n. 2/2017 26 Booklet Italy, Lombardy and Milan
Lombardy and Milan: strengths Innovation: the role of Lombardy in Italy 17% population 23% high-growth knowledge-intensive startups \ 28% highly cited scientific articles 35% patents Source: Assolombarda, Booklet Ricerca e Innovazione n. 2/2017 27 Booklet Italy, Lombardy and Milan
Lombardy and Milan: strengths Strong presence of high-quality public and private research centers 13 universities 1 Institute for Advanced Study 3 sections of the Italian National Institute for Nuclear Physics and one European Joint Research Center 19 Institutes for Treatment and Research 12 CNR (National Research Council) Institutes and 18 territorial sections of CNR Institutes 700 Research and Technology Transfer Centers Source: Assolombarda on CNR and Regione Lombardia data 28 Booklet Italy, Lombardy and Milan
Lombardy and Milan: strengths Universities: high concentration (13) and international attractiveness In Lombardy Just under 270,000 university students of which 12,500 international university students (around 10,000 in Milan) equal to 5% of the total number of students The equivalent figure is 10% in France 8% in Germany 3% in Spain Source: Assolombarda on Miur, OECD and Assolombarda data 29 Booklet Italy, Lombardy and Milan
Lombardy and Milan: strengths Universities: Politecnico of Milano and Bocconi examples of excellence Engineering and Technology: Ranking by faculty - 2018 Social Sciences and Management: Ranking by faculty - 2018 Bocconi University: 11 (2018) 17 (2017) 22 (2016) Politecnico of Milano: 17 (2018) 24 (2017) 24 (2016) Source: Assolombarda on QS Ranking data 30 Booklet Italy, Lombardy and Milan
Lombardy and Milan: strengths Milan, a driver of Italian creativity 14 Most popular exhibitions worldwide Over 29,000 Theatre shows museum attendance Over 7 million Theatre audiences 7 million Museum visitors 28 Museums Source: Assolombarda and Comune di Milano, Milano Scoreboard 2018 31 Booklet Italy, Lombardy and Milan
Lombardy and Milan: strengths Labour market: a better performance than the Italian average Unemployment rate Employment rate 11.2 Euro Area Germany Lombardy Italy 11.2 Euro Area Germany Lombardy Italy 75.2 9.1 9.0 65.5 65.5 67.3 7.7 4.1 6.4 63.5 66.3 58.0 3.7 57.6 2005 2007 2009 2011 2013 2015 2017 2005 2007 2009 2011 2013 2015 2017 Source: Assolombarda on Istat and Eurostat data 32 Booklet Italy, Lombardy and Milan
Lombardy and Milan: strengths Labour market: high female employment rate Female employment rate Euro Area Germany Lombardy Italy 71.5 59.6 61.2 55.4 59.3 55.2 45.4 48.9 2005200620072008200920102011201220132014201520162017 In Lombardy the female employment rate is in line with the 2010 Lisbon targets, thanks to: more opportunities for women to reach relevant positions/roles in their firms diffusion of part-time contracts (25% among working women) welfare initiatives both by large private companies and public institutions (78% of municipalities provide childcare services, such as kindergarten). Source: Assolombarda on Istat and Eurostat data 33 Booklet Italy, Lombardy and Milan
Lombardy and Milan: strengths What makes Lombardy and Milan a knowledge hub? The fact that here you find: a multi-sectorial economy, with a core manufacturing sector integrated with a highly developed service sector (especially in Milan); a virtuos network of small and medium enterprises well integrated with large enterprises and multinational companies; the concentration of 13 long-standing and prestigious universities, closely connected to the entrepreneurial system; a strong specialization in knowledge-intensive sectors and the availability of high-skilled human capital. 34 Booklet Italy, Lombardy and Milan
Lombardy and Milan: strengths 5 typical vocations for Milan Value chains and sectorial specializations that are internationally recognized and have a high growth potential Life sciences Agribusiness Manufacturing 4.0 Finance Art, culture and design Source: Assolombarda and Comune di Milano, Milano Scoreboard 2018 37 Booklet Italy, Lombardy and Milan