A rather clear picture emerged from the 11th Steering Committee for Internationalization 2023.: In 2022, the international economic environment - marked by the 2020 pandemic emergency - abruptly changed with the onset of the conflict in Ukraine. The main channel of transmission of the impact of the war is commodities, whose prices in financial markets have soared, fueling an upward phase that has been underway since the second half of 2021.
Despite this, on the export front, in the January-November 2022 period, compared with the first eleven months of the previous year, Italian exports mark a growth of 20.58% worth 573 billion euros and an increase also in volume, albeit small, of +0.3%. In comparison with major European partners, the increase in Italian exports In the first ten months of this year (+20.8%) is higher than that of Germany (+14.4%) and France (+19.6%), while remaining slightly lower than that of Spain (+23.6%).
The support of all system players for the growth of our companies in foreign markets is a central objective of Italy's foreign and economic policy, which is intended to be addressed with renewed commitment, through constant dialogue with economic operators and by deploying new tools to cope more effectively with the challenges arising from the international economic situation.
In this regard, in 2023 the Italian government has developed a series of initiatives to support Italian companies in expanding their foreign markets, with a specific focus on SMEs.
This diplomacy for growth is deployed on all lines of action identified by the Cabina di Regia and is expressed across the board: in the economic intelligence of the Farnesina's network abroad and ICE Agenzia, in order to seize opportunities for companies; in the promotion of the main international trade fairs; in communication and integrated promotion actions, to nurture an innovative narrative of our country that enhances our strengths, namely that synthesis of creativity, innovation and beauty that are synonymous with Made in Italy.
In recent years, digitization and e-commerce have become increasingly important for businesses wishing to expand internationally. Italy, like many other countries, has seen the acceleration of this trend during the pandemic.
Therefore, the government planned to use resources from the Structural Funds for the period 2021-2027 to Train and place 800 digital managers in southern Italian companies, in partnership with eight southern universities. This will enable SMEs to take full advantage of the opportunities offered by digitization.
In addition, the Italian government has decided to create a unified list of digital managers, which will enable interested companies to more easily access digitization tools. This list will be created using the databases already available on various projects such as D-TEM, Digital Export Bonus and Smart Export.
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It is planned to develop a set of strategies and tools to Support e-commerce and export of Italian enterprises. In particular, the government intends to Increase the presence of Italian companies on major international e-commerce platforms, using new promotional tools and strategies. This includes promoting the internationalization of Italian e-commerce platforms through the activation of special showcases on major international marketplaces.
Finally, the government decided to Relaunch Fund 394/81 and the concessional financing instrument for “e-commerce” interventions managed by SIMEST. These subsidized financing instruments were very useful for Italian companies during the pandemic and became an exceptional lever to implement the support required by Italian companies suffering from the export contraction brought about by the pandemic.
The trade fair system is another important area to support the export of Italian companies. The government has planned to reduce subsidies to companies for participation in domestic pavilions organized by ICE Agency at foreign trade fairs compared to the pre-pandemic period, to Facilitate the involvement of other fair entities at specific fairs abroad.
The Italian government will also promote the internationalization of Italian exhibition organizations through the export of reference events, replicating its exhibition format in other areas of the world.
Finally, the government will intensify initiatives to support the Participation of foreign traders and buyers in the many trade shows of an international nature hosted in Italy, through the establishment of specific, enhanced incoming programs agreed upon between fair organizers/bodies with ICE.
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Throughout 2022, there were many initiatives put in place by the state to incentivize the expansion of companies into foreign markets.
The conflict in Ukraine necessitated the activation of additional emergency measures from Fund 394/81 under the Temporary Crisis Framework, which led to the introduction of two additional funding lines. Overall, the performance achieved by Fund 394/81 during the pandemic in support of Italian companies, with a focus on SMEs, and in the subsequent recovery phase confirmed the instrument's centrality in internationalization support strategies.
This was followed by the recognition within the Budget Law 2022, of an annual budget allocation of 1.5 billion euros, in addition to an annual non-repayable portion from the Integrated Promotion Fund of 160 million euros, for the years 2022 to 2026.
One of the first proposals worth mentioning concerns the extension of beneficiary enterprises of initiatives eligible for financing through F. 394/81. The goal is to open access to all Italian companies, of all legal forms and size classes, by providing selective criteria for the co-financing component up to 10% non-refundable. In this way, it seeks to support the growth of an increasing number of companies wishing to expand into foreign markets.
Another of the main changes concerns the expansion of existing lines of intervention, with the Support for hiring not only “Temporary Export Managers” but also “Temporary Managers” with soft skills in different subjects, such as digital, marketing, technological innovation and sustainability.
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A third proposal concerns The introduction of new lines of intervention of the 394 Fund.. These lines aim to To support technological innovation, digitalization and environmental sustainability. In particular, we aim to Provide the necessary support for enterprises to obtain certifications (product, environmental, safety, etc.), Patents and specialized consulting for access to foreign markets. In this way, it seeks to facilitate the expansion of Italian companies into international markets.
Another important aspect concerns The expansion of the number of initiatives that can be financed through F. 394/81. and the amount of the individual line of intervention. In particular, there is provision for Provide funding under the Fairs and Events Facilitating Intervention to cover costs related to participation in up to three events of an international nature, also in Italy within two years.
Finally, the possibility of providing financing under the E-commerce facilitation intervention, to cover costs related to the development or enhancement of multiple e-commerce platforms, own or third-party. These initiatives aim to facilitate the participation of Italian companies in major international events and support the development of e-commerce.
In this article, we have reported on all the news in the field of internationalization that emerged from the 11th Cabina di Regia per l'Internazionalizzazione, the operational tool manned by the Ministry of Foreign Affairs, for and in support of the export development of Italian companies. As seen, the tool aims to take advantage of the positive momentum of Made in Italy exports, to counter a moment of crisis common to many sectors in the domestic market.
Through the Development of digitalization, presence on e-commerce and international marketplaces, and the exhibition facility, the Italian government aims to further develop the Italian business fabric also in international markets. Incentives, calls and grants to support internationalization proposed in 2023, with a revamped look to support digital and sustainable development, will certainly be of great help to businesses looking to expand their horizons abroad.
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