The number of startups in Italy is constantly growing, with numerous new companies emerging even during the COVID-19 crisis: While a total of 10,630 startups were registered in the commercial register in 2019, the number has now risen to 11,899. This corresponds to 3.2 percent of all newly founded corporations last year.
The startups are particularly concentrated in northern Italy, especially in Lombardy, where the largest number of startups was registered (26.9 percent). The city of Milan is the center of the Italian startup scene. However, the regions of Lazio (11.3 percent of all startups), Emilia-Romagna (8.6 percent), Campania in southern Italy, and Veneto (8.2 percent each) also boast active ecosystems.
The most important startup sponsors are the universities, especially the technical universities in Milan and Turin: according to the UBI Global World Rankings of Business Incubators and Accelerators 2019-2020, the one organized by the Polytechnic of Milan Foundation (it. Fondazione Politecnico di Milano) managed by the Poli-Hub of the Milan Polytechnic (it. Politecnico di Milano) is one of the top five university incubators worldwide. And the I3P incubator at the Polytechnic University of Turin (it. Politecnico di Torino) was named the best and most efficient public incubator in the world in the report. Other important hubs include the B4i incubator at Bocconi University in Milan and the Digital Hub at LUMSA University in Rome, which specializes in the food, agritech, and traveltech sectors. In total, more than 160 private and public incubators operate in Italy.
What does Italy have to offer?
German Startups find numerous potential customers in Italian industry from a wide variety of sectors, especially in the processing typical of "Made in Italy". The focus varies depending on the region: in the north in particular, a wide variety of industries are concentrated, from textiles and mechanics to footwear and aerospace. In Lombardy, especially around the city of Varese, there is a concentration of cosmetics, cereals, and rubber products. In Piedmont, on the other hand, there are mainly mechanical companies and firms from the agricultural and food sectors, while Liguria is characterized primarily by shipbuilding and handicrafts. In Veneto, there are industries with specialization in production, such as goldsmithing, wine, and Prosecco. In Friuli, the digital technology sector and the food industry stand out. In the central area of the boot, Emilia-Romagna, with its ceramics sector, as well as its tile, footwear, and furniture industries, should be mentioned. And Tuscany is known for Florentine leather goods and Carrara marble. Finally, in southern Italy there is the pasta sector in Campania and the aerospace sector in Apulia.
Furthermore, thanks to the Industrial Plan established in 2016, the country offers new business opportunities in the digital sector for the aforementioned manufacturing industries. Along with these reforms, the Italian government has also introduced numerous financial incentives aimed at increasing Italy's attractiveness for foreign direct investment. These include supporting areas experiencing industrial crises and promoting research and development activities and the growth of innovative companies.
The trademark “Made in Italy”
Doing business in Italy means gaining access to corporate know-how and a large network of experts capable of producing high-quality Italian products. Export figures demonstrate the quality of the international "Made in Italy" label: exports from the food and beverage industry, for example, are worth €40 trillion. Furthermore, Italy is the largest manufacturer of furniture and accessories in Europe and the second-largest exporter of machinery in the euro area – and even leads the export market in this sector outside of Europe. And thanks to its strength in research and innovation, Italy ranks fifth in the EU for the supply of high-tech and medium-tech products and sixth for design applications.
The uniqueness of the "Made in Italy" trademark is due to the country's cultural and artistic richness. This is recognized not only by the flow of tourists, but also by UNESCO: according to the organization, Italy ranks first for the number of sites considered World Heritage. Therefore, combined with cultural significance, strategy and innovation can – contrary to all clichés – open up new perspectives for the Beautiful Country open.
As a German company in Italy: the experience of Datenberg
However, with regard to different corporate cultures, there are many things that German companies have to consider, as the Munich startup mountain of data reported. As part of the “European Light Industries Innovation and Technology (ELIIT) Project” contacted the Italian yarn manufacturer Pecci Filati from Prato near Florence. The SME employs approximately 55 people and is managed by Roberta Pecci. Textile engineering has a centuries-old tradition in the Prato region, but has declined significantly in recent years. The migration of textile manufacturing to low-wage countries has gone hand in hand with a focus on sophisticated and innovative products. For example, Pecci Filati produces non-linear yarn in small batches, which is used by the fashion industry.
As part of ELIIT, Datenberg's task was to optimize production based on data. To achieve this, the Munich-based company searched for the greatest optimization potential and considered how to support humans at the plant. To achieve this, the startup used its proprietary analytics platform, Smartplaza, which is already used in industries such as body construction and rubber manufacturing. In doing so, Datenberg was able to learn a lot about the different corporate cultures:
- Ciao or Hello
As in every country, there are people in Italy who speak foreign languages, and some who don't. At Pecca Filati, for example, the management speaks English, but the rest of the team doesn't. This can lead to processes losing speed and efficiency due to the necessary intermediate step of translation. - Italian pragmatism
Issues such as data security and confidentiality can be handled more pragmatically in Italy than is often the case in Germany. For example, Datenberg has been provided with videos of Pecca Filati's production facilities via YouTube. - German punctuality
In on-site meetings, it's quite possible that deadlines aren't kept exactly—but the wait can easily be bridged with a few espressos. In online conferences, however, the Italian side also shows a penchant for punctuality. - Holiday in August
When planning projects, it's important to note that August is a busy holiday month in Italy. This summer lull is much more pronounced than in Germany, for example. If there's anything to be arranged, you'll have to wait until September. - Enjoyment at work
What particularly impressed Datenberg was the enthusiasm their Italian colleagues showed in their work. Since the German team can't communicate directly with their technical contact, the contact person edits videos in Italian with subtitles about production machines. This demonstrates appreciation and motivation – even without direct communication.
