A rather clear picture emerged from the 11th Internationalization Steering Committee 2023.In 2022, the international economic context – marked since 2020 by the pandemic emergency – suddenly shifted with the outbreak of the conflict in Ukraine. The main channel through which the war's impact was transmitted was commodities, whose prices on financial markets soared, fueling an upward trend already underway since the second half of 2021.
Despite this, on the export front, in the period January-November 2022, compared to 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 (+20.81% YoY) is higher than that of Germany (+14.41 TP3T) and France (+19.61 TP3T), while remaining slightly lower than that of Spain (+23.6%).
The support of all system stakeholders for the growth of our businesses in foreign markets is a central objective of Italy's foreign and economic policy. This objective will be pursued with renewed commitment, through constant dialogue with economic operators and by deploying new tools to more effectively address the challenges arising from the international situation.
In this regard, in 2023 The Italian government has developed a series of initiatives to support Italian businesses in expanding their foreign markets., with a specific focus on SMEs.
This diplomacy for growth is deployed across all the lines of action identified by the Steering Committee and is expressed across the board: in the economic intelligence of the Farnesina and ICE Agency's network abroad, in order to seize opportunities for businesses; in the promotion of major international trade fairs; in integrated communication and promotion actions, to foster an innovative narrative of our country that highlights our strengths, namely that synthesis of creativity, innovation, and beauty that are synonymous with Made in Italy.
In recent years, digitalization and e-commerce have become increasingly important for businesses looking to expand internationally. Italy, like many other countries, has seen this trend accelerate 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 allow SMEs to fully leverage the opportunities offered by digitalization.
In addition, the Italian government has decided to create a unified list of digital managers, which will allow interested companies to more easily access digitalization tools. This list will be created using databases already available from 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 Italian businesses in e-commerce and exports. 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 by activating dedicated showcases on major international marketplaces.
Finally, the government decided to relaunching Fund 394/81 and the soft loan financing instrument for “e-commerce” initiatives managed by SIMEST. These subsidized financing instruments have been very useful for Italian businesses during the pandemic and have become an exceptional lever for implementing the support required by Italian businesses, suffering from the contraction of exports determined by the pandemic.
The trade fair system represents another important area for supporting the export of Italian companies. The government plans to reduce contributions to companies for participation in national pavilions organized by ICE Agency at foreign trade fairs compared to the pre-pandemic period, in order facilitate the involvement of other exhibition entities on the occasion of specific international trade fairs.
The Italian government will also promote the internationalization of Italian exhibition centers through exporting the reference events, replicating its trade fair format in other areas of the world.
Finally, the government will intensify initiatives to support 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, the state implemented numerous initiatives to incentivize companies' expansion into foreign markets.
The conflict in Ukraine has necessitated the activation of further emergency measures under Fund 394/81 within the Temporary Crisis Framework, leading to the introduction of two additional financing 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 has confirmed the instrument's central role in internationalization support strategies.
This was followed by the recognition in the 2022 Budget Law of an annual financial allocation of 1.5 billion euros, as well as an annual share of non-repayable funds from the Integrated Promotion Fund of 160 million euros, for the years 2022 to 2026.
One of the first proposals worth noting concerns the expansion of the range of businesses eligible for initiatives funded through Law 394/81. The goal is to open access to all Italian companies, regardless of legal form or size, by establishing selection criteria for the co-financing component, which can reach up to 10% in the form of non-repayable grants. In this way, the aim is to support the growth of an increasing number of companies seeking to expand into foreign markets.
Another of the main innovations concerns the expansion of existing intervention lines, with the support for the hiring not only of “Temporary Export Managers” but also of “Temporary Managers” with cross-functional skills in various areas, such as digital, marketing, technological innovation, and sustainability.
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A third proposal concerns the introduction of new lines of intervention for Fund 394. 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. This way, efforts are made to facilitate the expansion of Italian companies into international markets.
Another important aspect concerns the expansion of the number of initiatives eligible for funding through Fund 394/81 and the amount allocated to each individual line of action. In particular, the proposal provides for the possibility of to disburse funding within the scope of the Fairs and Events incentive intervention, for the coverage of costs related to participation in up to three international events, also in Italy within two years.
Finally, the possibility of granting financing within the scope of the E-commerce incentive intervention, for covering costs related to the development or enhancement of multiple e-commerce platforms, either proprietary or third-party. These initiatives aim to facilitate the participation of Italian companies in major international events and to support the development of e-commerce.
In this article, we reported all the news regarding internationalization, which emerged from the XIth "Cabina di Regia per l’Internazionalizzazione" (Steering Committee for Internationalization). This is the operational tool overseen by the Ministry of Foreign Affairs, in favor of and in support of the export development of Italian companies. As observed, the tool aims to leverage the positive momentum of Made in Italy exports to counter a period 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. The incentives, calls for proposals, and contributions to support internationalization offered in 2023, with a renewed focus on supporting digital and sustainable development, will surely be of great help to companies looking to expand their horizons abroad.
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