IT

COUNTRYPROFILE ITALY

CONTENTS<<COUNTRY>>

IMD World Competitiveness Yearbook, Talent & Digital 2020: summaries

WORLD COMPETITIVENESSRANKING 2020

All data are available from theWorld Competitiveness Online.

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BASIC FACTSCapital

Land area (square km '000) 3012019

Exchange Rate (per $) 0.8932019

Population - market size (millions) 60.362019 15

Gross Domestic Product (GDP) (US$ billions) 2,001.22019 8

GDP (PPP) per capita (US$) 40,6702019 29

Real GDP growth (%) 0.32019 57

Consumer price inflation (%) 0.632019 13

Unemployment rate (%) 9.952019 55

Labor force (millions) 25.942019 16

Current account balance (% of GDP) 2.962019 24

Direct investment stocks inward ($bn) 431.02018 17

Direct investment flows inward (% of GDP) 1.462019 42

PEER GROUPS RANKINGSEUROPE - MIDDLE EAST - AFRICA (40 countries) POPULATIONS > 20 MILLION (29 countries)

COMPETITIVENESS TRENDS - OVERALL

ITALYOVERALL PERFORMANCE (63 countries) Rank

Rome

CHALLENGES IN 2020Stimulate investment, both public and private.

Implement a major plan for infrastructure.

CONFINDUSTRIA, Economic Research Department, Rome

COMPETITIVENESS LANDSCAPE

35 44 42 44 44

2016 2017 2018 2019 2020

35

25

15

59

47

60 59

42 45 44

34

58

4248

53 53

39

22 21

33

Dom

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Inte

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Empl

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Pric

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Publ

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Tax

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Inst

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Busi

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Leg

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Soci

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Fra

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Prod

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Effi

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Labo

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Fina

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Man

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Prac

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Att

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Tech

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Scie

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Economic Performance Government Efficiency Business Efficiency Infrastructure

23 29 29 29 29

2016 2017 2018 2019 2020

1518

1618 18

2016 2017 2018 2019 2020

• Stimulate investment, both public and private.• Implement a major plan for infrastructure.• Strengthen the measures to support firms.• Support household income.• Promote a European investment plan.

Provided by:CONFINDUSTRIA, Economic Research Department, Rome

IMPROVEMENTSWCY 2019

WCY 2020 DECLINES

WCY 2019

2.3.08 Exchange rate stability 0.046 0.005 2.4.14 Start-up days 6.0

1.5.01 Consumer price inflation 1.24 0.63 1.1.14 Real GDP growth 0.9

4.3.18 Number of patents in force 192.1 238.7 1.1.18 Gross fixed capital formation - real growth 3.44

2.1.02 Government budget surplus/deficit (%) -2.14 -1.64 1.1.15 Real GDP growth per capita 1.06

2.5.05 Social cohesion 4.23 5.18 4.1.07 Population - growth -0.17

2.3.10 Adaptability of government policy 2.20 2.68 2.4.15 Start-up procedures 6.0

1.2.02 Current account balance 2.44 2.96 2.3.12 Bureaucracy 1.62

4.1.14 Distribution infrastructure 5.68 6.86 3.4.11 Women in management 27.49

2.3.11 Transparency 2.76 3.29 4.4.23 Environment-related technologies 1.91

4.1.15 Energy infrastructure 6.53 7.73 2.3.09 Legal and regulatory framework 3.41

2.4.17 Unemployment legislation 3.30 3.86 2.2.12 Real personal taxes 3.91

1.3.13 Relocation threats of business 4.14 4.84 3.1.10 Use of digital tools and technologies 5.48

2.1.09 Public finances 2.04 2.36 3.2.21 Brain drain 4.40

2.3.07 Foreign currency reserves per capita 2,521 2,904 4.4.26 Pollution problems 5.25

4.2.16 High-tech exports (%) 6.84 7.79 2.1.10 Tax evasion 2.13

COMPETITIVENESS EVOLUTION & ATTRACTIVENESS INDICATORS

ITALYCOMPETITIVENESS EVOLUTION

11.0

-0.21

7.0

1.36

23.15

1.64

3.05

4.89

The criteria below highlight the 15 biggest Improvements and the 15 biggest Declines in the overall performance of the economy. They are

determined by the largest percentage changes in the value of each criterion from one yearbook to the next.

WCY 2020

1.98

KEY ATTRACTIVENESS INDICATORSFrom a list of 15 indicators, respondents of the Executive Opinion Survey were asked to select 5 that they perceived as the key

attractiveness factors of their economy. The chart shows the percentage of responses per indicator from the highest number of responses

to the lowest.

0.3

1.40

0.51

3.54

4.98

4.05

0.9%3.6%5.4%7.2%9.0%14.4%19.8%22.5%27.0%30.6%36.9%50.5%67.6%69.4%82.9%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Competitive tax regimeEffective legal environment

Competency of governmentPolicy stability & predictability

Access to financingQuality of corporate governance

Business-friendly environmentEffective labor relations

Reliable infrastructureDynamism of the economy

Cost competitivenessStrong R&D culture

Open and positive attitudesHigh educational level

Skilled workforce

WORLD COMPETITIVENESSDIGITAL RANKING 2020

All data are available from theWorld Competitiveness Online.

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Alpha AlphaLabelBeta BetaLabel Gamma GammaLabel1 2 2 2 2 2 24 4 4 2 2

6.5 4 4 2 28.5 4 4 2 211 4 4 2 2

2016 2017 2018 2019 2020

34 39 41 41 42

40 42 42 41 42

44 45 41 46 46

29 30 36 31 38

OVERALL

Future readiness

PEER GROUPS RANKINGS

EUROPE - MIDDLE EAST - AFRICA (40 countries) POPULATIONS > 20 MILLION (29 countries)

COMPETITIVENESS & DIGITAL RANKINGS

Technology

DIGITAL TRENDS - OVERALL

ITALY

OVERALL PERFORMANCE (63 countries)

OVERALL & FACTORS - 5 years

Knowledge

3439 41 41 423544 42 44 44

2016 2017 2018 2019 2020

Digital

Competitiveness

24 28 28 29 29

2016 2017 2018 2019 2020

12 15 16 17 16

2016 2017 2018 2019 2020

42 42 58 22

46 48 54 4342

38 42 23 39

Knowledge Talent Training & education Scientific concentration

Technology Regulatory framework Capital Technological framework

Future readiness Adaptive attitudes Business agility IT integrationThe direction of the triangle indicates the performance change from the last year: improved or stabledeclined

Overall Factors Sub-Factors

N.B. This graph provides only a comparison of the country’s performance in the two rankings.

u Overall top strengths

w Overall top weaknesses

Subfactors 2016 2017 2018 2019 202044 44 41 44 42

48 46 56 57 58

29 32 28 23 22

Talent Rank Rank Rank

Educational assessment PISA - Math 30 w 60 27 International experience 50 41 25 Foreign highly-skilled personnel 52 52 37 Management of cities 44 49 u 6 Digital/Technological skills 51 26 u 16 Net flow of international students 33 48 48 u 11

Subfactors 2016 2017 2018 2019 202041 42 41 44 48

51 53 49 53 54

43 42 44 46 43

Regulatory framework Rank Rank Rank

Starting a business 42 39 49w Enforcing contracts 56 47 49 Immigration laws 21 w 54 26 Development & application of tech. 52 48 24 Scientific research legislation 47 52 43 Intellectual property rights 31 24 46

Subfactors 2016 2017 2018 2019 202027 27 36 35 42

16 30 32 31 23

33 35 32 34 39

Adaptive attitudes Rank Rank Rank

E-Participation 35 25 34 Internet retailing 27 u 6 48 Tablet possession 42 45 47 Smartphone possession 51 w 59 33w Attitudes toward globalization 55 33 u 4

Training & education Scientific concentration

Talent

Robots in Education and R&D

IT integration

Business agility IT integration

Scientific concentration

Capital Technological framework

FACTORS BREAKDOWN - STRENGTHS AND WEAKNESSES

ITALY

FUTURE READINESS

TECHNOLOGY

Technological framework

Opportunities and threats E-GovernmentWorld robots distribution Public-private partnerships

IT & media stock market capitalization Communications technology

Regulatory framework

Capital

KNOWLEDGE

Entrepreneurial fear of failure

Agility of companies Cyber securityUse of big data and analytics Software piracyKnowledge transfer

Adaptive attitudes

Business agility

Venture capital Internet bandwidth speedInvestment in Telecommunications High-tech exports (%)

Funding for technological development Mobile Broadband subscribersBanking and financial services Wireless broadbandCountry credit rating Internet users

Training & education

Employee training Total expenditure on R&D (%)Total public expenditure on education Total R&D personnel per capitaHigher education achievement Female researchersPupil-teacher ratio (tertiary education) R&D productivity by publicationGraduates in Sciences Scientific and technical employmentWomen with degrees High-tech patent grants

WORLD TALENTRANKING 2020

All data are available from theWorld Competitiveness Online.

Visit our eShop

Alpha AlphaLabel Beta BetaLabel Gamma GammaLabel1 2 2 2 2 2 24 4 4 2 2

Value

4.0 % 42 7,574 US$ 24u 11.53 ratio 10u 10.60 ratio 18 4.54 Survey [0..10] 48w 4.77 Survey [0..10] 60 42.81 % 47 7.13 Survey [0..10] 25

Value

88.70 index 45w 5.55 Survey [0..10] 60 5.52 Survey [0..10] 42 4.05 Survey [0..10] 46 7.59 Survey [0..10] 27w 3.73 Survey [0..10] 52u 32,932 US$ 23u 269,124 US$ 9w 23.85 % 50 3.98 Survey [0..10] 49 16.50 micrograms 35

Value

-0.11 % 49 6.11 Survey [0..10] 27 5.69 Survey [0..10] 47w 4.96 Survey [0..10] 50 5.66 Survey [0..10] 39 6.91 Survey [0..10] 25 24.20 % 32u 7.14 Survey [0..10] 23 6.61 Survey [0..10] 32 4.93 Survey [0..10] 49 1.76 number 39 477 Average 33

Investment & Development 2020 Rank

Health infrastructure meets the needs of society

2020 Rank

Total public expenditure on education Percentage of GDP

ApprenticeshipsEmployee training is a high priority in companies

Readiness 2020 Rank

Educational assessment - PISA PISA survey of 15-year olds

Appeal

Exposure to particle pollution Mean population exposure to PM2.5, Micrograms per cubic metre

Labor force growth Percentage change

Index of a basket of goods & services in the main city, including housing (New York City = 100)

Skilled labor is readily available

Cost-of-living index

Female labor force Percentage of total labor force

Pupil-teacher ratio (secondary education) Ratio of students to teaching staff

are sufficiently implemented

Total public exp. on education per student Spending per enrolled pupil/student, all levels

Pupil-teacher ratio (primary education) Ratio of students to teaching staff

Management education meets the needs of the business community

Language skills are meeting the needs of enterprises

Student mobility inbound Foreign tertiary-level students per 1000 inhabitants

Primary and secondary education meets the needs of a competitive economy

Graduates in Sciences % of graduates in ICT, Engineering, Math & Natural Sciences

University education meets the needs of a competitive economy

Finance skills are readily available

International experience of senior managers is generally significant

Competent senior managers are readily available

Justice is fairly administered

Gross annual income including supplements such as bonuses, US$

Remuneration of management Total base salary plus bonuses and long-term incentives, US$

Effective personal income tax rate Percentage of an income equal to GDP per capita

Attracting and retaining talents is a priority in companies

Worker motivation in companies is high

Brain drain (well-educated and skilled people) does not hinder competitiveness in your economy

Quality of life is high

Foreign highly-skilled personnel are attracted to your country's business environment

Remuneration in services professions

OVERALL PERFORMANCE (63 countries)

IMD World Talent Ranking 2020

ITALY

32

36

32

36 36

32

33 33

31

33

37

41

36

38

42

33

34

33

37

39

2016 2017 2018 2019 2020

Overall

Investment &Development

Appeal

Readiness

33

4236

39

Investment & Development

Appeal

Readiness

The direction of the triangle indicates the performance change from the last year: improved or stabledeclined

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IMD WORLDTALENTRANKING 2020

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