Rilasciato il 12 Giugno 2017 / Issued on 12 June 2017

Questo booklet è stato chiuso con le informazioni disponibili al 31 May 2017 This booklet has been draft using information available as of 31st May, 2017 2 Contents

1. Italy and : perception and reality 5 • Italian public debt: 132.6% of GDP but only 68% of household net financial assets

• Italian primary surplus: the highest cumulated value

• Explicit and implicit debt: Italy in the top 5 of the EU Sustainability Ranking

• Italian manufacturing export performance 2000-2016

• Italian manufacturing in global rankings

2. Lombardy and : business structure 11 • The leading Italian region: in 2016, 22% of the Italian GDP

• Lombardy in comparison: 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 over 3,000 multinational companies operating in Italy

• Over 12,000 knowledge-intensive startups born in Lombardy (2007-2013)

• 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 in percentage of total turnover

3 Contents

3. Lombardy and Milan: strengths 22

• 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?

• Milan S.T.E.A.M. city

4 1. Italy and Lombardy: perception and reality Italy and Lombardy: perception and reality

Italian public debt: 132.6% of GDP but only 68% of household net financial assets

Public debt as percentage of GDP - 2016 Public debt as percentage of household net financial assets (*) - 2015

200 250

200

150 132.6 150 100

100 68 50 50

0 0 FI NL DE AT UK IE FR ES BE PT IT EL 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: Tableau de bord Assolombarda Confindustria Milano e Brianza on Eurostat data

6 Italy and Lombardy: perception and reality

Italian primary surplus: the highest cumulated value

Cumulated primary balances (current values – billion euro)

800 600 671 400 374 200 Germany 0 France -200 Italy -278 -400 -428 UK -600 -605 Spain -800

Source: Tableau de bord Assolombarda Confindustria Milano Monza e Brianza on Eurostat data

7 Italy and Lombardy: perception and reality

Explicit and implicit debt: Italy in the top 5 of the EU Sustainability Ranking

EU Sustainability Ranking - 2016 (explicit and implicit debt as % of GDP)

900

Explicit debt Implicit debt 825 788

800 765

700 603

600 549 458

500 432

381 390

400 356

331 337

311

256

272

266 254

300 249

199

179 161

200 147

135

107

109

39 53

62 39 100 0 -100

Source: Tableau de bord Assolombarda Confindustria Milano Monza e Brianza on Stiftung Marktwirtschaft data

8 Italy and Lombardy: perception and reality

Italian manufacturing export performance 2000-2016

Italian manufacturing export (billion euro)

Export record level

395 400 374 374 383 348 351 360 317 323 272 286 277 253 264 260 253

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Source: Tableau de bord Assolombarda Confindustria Milano Monza e Brianza on Istat data

9 Italy and Lombardy: perception and reality

Italian manufacturing in global rankings

Manufacturing trade surplus - 2015 Share of global manufacturing value added - 2015 (US billion dollar) (% on current prices - US dollar)

1,062 28.6%

19.0% 7th th 5 worldwide worldwide 362 202 175 6.5% 6.1% 104 3.0% 3.0% 2.3%

China Germany Korea Japan Italy China USA Japan Germany Korea India Italy

Source: Tableau de bord Assolombarda Confindustria Milano Monza e Brianza on WTO and CSC data

10 2. Lombardy and Milan: business structure Lombardy and Milan: business structure

The leading Italian Region: in 2016, 22% of the Italian GDP

Gross Domestic Product % - 2016 Lombardy Italy Share

Area 23,864 302,073 7.9% (sq. km.) Milan* Population 10,008,349 60,665,551 16.5% Rest of (1/1/2016) 10% Lombardy Italy 22% 78% Workforce 4,673,439 25,769,875 18.1% (thousand, 2016)

GDP 367,420 1,672,432 22.0% (nominal, million euro, 2016)

Value Added 32,004 24,288 - Value Added per capita - 2015 (euro) (per capita, 2015)

Enterprises 807,466 4,359,087 18.5% 44,839 (2014) 32,004 R&D expenditure 4,625 22,291 20.8% 24,288 (million euro, 2014)

Import 114,664 365,579 31.4% (million euro, 2016)

Export 112,199 417,077 26.9% (million euro, 2016) Milan* Lombardy Italy (*) 2014

Source: Tableau de bord Assolombarda Confindustria Milano Monza e Brianza on Istat and Prometeia data

12 Lombardy and Milan: business structure

Lombardy in comparison: the leading Italian Region in terms of manufacturing gross value added

Lombardy workforce by business sector - 2014 Manufacturing gross value added at basic prices by region - 2014 (billion euro)

130 129 Information and communication Manufacturing 3.9% 25.7% Real Estate 63 activities 2.0% 32 31 30 28 23 Other Professional, scientific 37.4% and technical activities 8.4%

Financial and Insurance Trade activities 18.3% 4.2%

Source: Tableau de bord Assolombarda Confindustria Milano Monza e Brianza on Istat and Eurostat data

13 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 3,000* 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: Tableau de bord Assolombarda Confindustria Milano Monza e Brianza on Mediobanca – Unioncamere data

14 Lombardy and Milan: business structure

90 large enterprises in Milan

Other 0,9% 3,2% 100% 3,7% 10,3% 3,5% 90% 18,0% 13,5% Finance, insurance and 80% 0,8% 28,9% 33,7% 13,4% real estate 12,2% 4,0% 70% 2,2% 2,6% 9,9% 20,4% Information and 60% 10,4% 11,0% 6,4% communication 4,4% 50% Trade and transport 40% 65,9% 30% 54,8% 55,3% 56,0% 54,3% Construction 20% 10% Manufacturing and 0% energy Stuttgart Munich Lyon Barcelona Milano Numer of enterprises with 20 50 13 37 90 turnover > € 1bn (2014)

Source: Tableau de bord Assolombarda Confindustria Milano Monza e Brianza on Orbis data

15 Lombardy and Milan: business structure

Milan the prime location for over 3,000 multinational companies operating in Italy

Foreign multinational enterprises

Over 3,000 foreign multinational companies located in Milan (34% of those active in Italy) with 289,000 employees and € 169 billion turnover

Source: Tableau de bord Assolombarda Confindustria Milano Monza e Brianza on Milan Chamber of Commerce data

16 Lombardy and Milan: business structure

Over 12,000 knowledge-intensive startups born in Lombardy (2007-2013)

12,121 knowledge-intensive startups - out of 52,675 located in Italy - born in Lombardy (2007-2013)

1.2% Science-based industry 3.2% 2.7% 0.7% 2.6% 7.0% 7.5% 6.9% 7.2% 18.4% 12.0% 9.5% 7.2% Arts, culture and creative 14.7% activities 5.7% 25.5% 25.9% 32.3% 13.5% Machinery and special tools 23.9% 19.5% Engineering & architectural 25.6% 14.9% services and R&D 26.6% 22.7% Software 38.0% 41.6% 31.2% Advisory services 28.2% 24.1%

Baden-Württemberg Bayern Rhône-Alpes Cataluña Lombardy

Source: Tableau de bord Assolombarda Confindustria Milano Monza e Brianza and Politecnico of Milano data

17 Lombardy and Milan: business structure

Export: Lombardy vs other European regions

Export

(billion euro)

196

192

183

181

178

175

173

172

169

166

165

160

154

153

149

144

123

122

112

111

110

108

108

104

104

94

82

65

64

60

59

59

57 57

55 55

55

53 53 53

51

49

49

42 41

Lombardia Baden-W. Bayern Auvergne-Rhône-Alpes Cataluña

2008 2009 2010 2011 2012 2013 2014 2015 2016

Source: Tableau de bord Assolombarda Confindustria Milano Monza e Brianza on Istat, Destatis, Idescat, Douanes et droits indirects data

18 Lombardy and Milan: business structure

Export: Lombardy’s main trade partners

Lombardy’s main trade partners - 2016 Repositioning on extra-EU markets: the case of Milan - 2016 (million euro)

Export % change Export Milan World 2016 2016-2008 50 (billion euro) EU-28 1 Germany 15,140 6.0% 38.5 2 France 11,237 -7.8% 40 35.9 3 USA 8,053 37.0% 30 4 Spain 6,146 -5.0% 45% 60%

5 Switzerland 6,121 22.3% 20 6 United Kingdom 5,248 11.0% 7 China 10 3,608 50.2% 55% 40% 8 Poland 3,078 17.2% 0 9 Netherlands 2,732 4.1% 10 Turkey 2,592 27.0%

Source: Tableau de bord Assolombarda Confindustria Milano Monza e Brianza on Istat data

19 Lombardy and Milan: business structure

Openness to international trade: outdoing German regions …

Manufacturing exporters - 2013 (% of firms)

68.7% 63.2%

52.7% 50.5% 47.3% 45.7% 46.8%

40.7% 38.8% 41.5%

EU

EU

-

-

EU

EU

EU

-

-

-

extra

extra

extra

extra extra

Baden-Württemberg Bayern Rhône-Alpes Cataluña Lombardy

Source: Tableau de bord Assolombarda Confindustria Milano Monza e Brianza on Assolombarda Confindustria Milano Monza e Brianza, The performances of European firms: a benchmark analysis

20 Lombardy and Milan: business structure

… also worth mentioning: the importance of export relative to total turnover

Manufacturing firms’ turnover from export – 2013 (% over total turnover)

39.8%

33.3%

27.6% 25.8% 23.5%

14.1%

12.6% 8.1% 8.9% 12.7%

EU EU EU EU EU

- - - - -

extra extra extra extra extra

Baden-Württemberg Bayern Rhône-Alpes Cataluña Lombardy

Source: Tableau de bord Assolombarda Confindustria Milano Monza e Brianza on Assolombarda Confindustria Milano Monza e Brianza, The performances of European firms: a benchmark analysis

21 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 – 2011-2013 (% of firms)

53.7%

40.2% 39.2% 39.3%

28.4%

Baden-Württemberg Bayern Rhône-Alpes Cataluña Lombardy

Source: Tableau de bord Assolombarda Confindustria Milano Monza e Brianza on Assolombarda Confindustria Milano Monza e Brianza, The performances of European firms: a benchmark analysis

23 Lombardy and Milan: strengths

Research and innovation

Highly cited scientific articles per million inhabitants Patents per million inhabitants

32 31 549 564 27 470 443 22 23

13 12 11 10 153 152 140 144 8 69 74

2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2007 2015 2007 2015 2007 2015 2007 2015 2007 2015 Baden-W. Bayern Auvergne - Cataluña Lombardy Baden-W. Bayern Rhône- Cataluña Lombardy Rhône- Alpes Alpes

Source: Tableau de bord Assolombarda Confindustria Milano Monza e Brianza on Incites-Thomson Reuters data and EPO

24 Lombardy and Milan: strengths

Innovation: the role of Lombardy in Italy

16% 28% population highly cited scientific articles

\ 28% 35% high-growth patents knowledge-intensive startups

Source: Tableau de bord Assolombarda Confindustria Milano Monza e Brianza on Istat data, Politecnico of Milano, Incites-Thomson Reuters data and EPO

25 Lombardy and Milan: strengths

Strong presence of high-quality public and private research centers

3 sections of the Italian National Institute for universities 13 Nuclear Physics and one European Joint Research Center

1 Institute for Advanced Study

12 CNR (National Research Council) Institutes and 18 territorial 19 Institutes for Treatment and Research sections of CNR Institutes

Source: Tableau de bord Assolombarda Confindustria Milano Monza e Brianza on CNR data

26 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 7% in Germany 2% in Spain

Source: Tableau de bord Assolombarda Confindustria Milano Monza e Brianza on Miur, OECD and Assolombarda Confindustria Milano Monza e Brianza data

27 Lombardy and Milan: strengths

Universities: Politecnico of Milano and Bocconi examples of excellence

Engineering and Technology: Ranking by faculty - 2017

Social Sciences and Management: Ranking by faculty - 2017

Bocconi University: 17° (2017) 22° (2016)

Politecnico of Milano: 24° (2017) 24° (2016)

Source: Tableau de bord Assolombarda Confindustria Milano Monza e Brianza on QS Ranking data

28 Lombardy and Milan: strengths

Milan, a driver of Italian creativity

10 Over 4 milion Most popular exhibitions worldwide Theatre audience 28 Museumsmuseum attendance Over 6.5 milion Museum attendance Over 20,000 Theatre shows

Source: Tableau de bord Assolombarda Confindustria Milano Monza e Brianza on Milano Scoreboard 2017

29 Lombardy and Milan: strengths

Labour market: a better performance than the Italian average

Unemployment rate Employment rate

Euro Area Germany Lombardy Italy Euro Area Germany Lombardy Italy 11.7 11.2 74.7 65.5 9.1 10.0 65.5 66.2 7.4 7.7 65.4 63.5 4.1 57.2 4.1 57.6

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 200520062007200820092010201120122013201420152016

Source: Tableau de bord Assolombarda Confindustria Milano Monza e Brianza on Istat and Eurostat data

30 Lombardy and Milan: strengths

Labour market: high female employment rate

Female employment rate

Euro Area Germany Lombardy Italy 70.8 In Lombardy the female employment rate is in line with the 2010 Lisbon targets, thanks to:

59.6 60.3  …more opportunities for women to reach relevant positions/roles in their firms… 55.4 58.1  …diffusion of part-time contracts (25% among working women)… 55.2  …welfare initiatives both by large private 48.1 companies and public institutions (78% of 45.4 municipalities provide childcare services, such as kindergarten). 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Source: Tableau de bord Assolombarda Confindustria Milano Monza e Brianza on Istat and Eurostat data

31 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.

32 Lombardy and Milan: strengths

Milan S.T.E.A.M. city

STEAM, the acronym of Science, Technology, Engineering & Environment, Arts, Manufacturing Capitale economico

Science Technology Engineering&Environment Arts Manufacturing Capitale scientifico

33 Lombardy and Milan: strengths

Milan S.T.E.A.M. city

The strength of Milan originates from the unique and distinctive blend of four assets:

• dynamic and supportive social capital • rich and diversified economic capital • top-grade scientific capital • widespread “aesthetic” capital, ranging from art to design and to craftsmanship

34 Lombardy and Milan: strengths

Milan S.T.E.A.M. city

STEAM - our vision: 4 enablers, 3 strategic levers and 4 innovation trajectories

4 enablers 4 innovation trajectories • A simple and digital city • Life sciences • A quick and accessible city • Manufacturing 4.0 • Quality human capital • Art, culture e creativity • An inclusive city • Sustainable economy

3 strategic levers • Innovation • Startups • Global outreach

35 www.assolombarda.it www.farvolaremilano.it www.assolombardanews.it @assolombarda Assolombarda company/assolombarda AssolombardaTV @assolombarda