Support for business internationalisation and innovation hubs
As part of its action to support the internationalisation of enterprises, the Italian Ministry of Foreign Affairs also devotes special attention to the promotion on international markets of Italian start-ups and scale-ups, and, more generally, of national innovation hubs, with a view to making them increasingly internationalised and capable of attracting foreign capital, talent, technologies and enterprises.
To this end, also in light of its guidance and supervisory functions, the Italian Ministry of Foreign Affairs and International Cooperation (MAECI) collaborates with the Italian Trade Agency (ITA) in the context of Italian collective exhibitions at international technology events and fairs (List of Startup and SME Initiatives for 2024 (ice.it)) and in the Global Startup Program (Global Start Up Program), an initiative promoted by the Italian Trade Agency and reserved for up to 150 innovative Italian start-ups engaged in the development of innovative products or services and intending to consolidate their technical, organisational and financial capabilities with the aim of tackling new markets. According to the programme, during their acceleration period abroad the start-ups will be involved in mentoring activities, networking events, and meetings with investors and corporates. The goal is to provide companies with a growth path that allows them to exponentially develop their professional skills. Participation in the project and each of its phases is free of charge.
INNOVIT – Focus on Acceleration Programmes
INNOVIT – Italian Innovation and Culture Hub – is a project promoted by the Directorate General for Country Promotion of the Italian Ministry of Foreign Affairs, in collaboration with the Embassy of Italy in Washington DC and the Consulate General of Italy in San Francisco, and managed with the support of the Italian Trade Agency (ITA) and the Italian Cultural Institute of San Francisco. It is a strategic hub whose mission is to serve as a stimulus for innovative business ideas and initiatives, a catalyst for innovative “cross border” projects and an accelerator for their international development, enabling Italian players to have a stable presence in the Silicon Valley, and from there across the United States.
The Hub is managed by Fondazione Giacomo Brodolini, a think and do tank dedicated to innovation and local development, and Entopan Innovation, an incubator and accelerator belonging to the Harmonic Innovation Group. Since its establishment, the Hub has quickly become a place for sharing information and collaborating with the best companies in the Bay Area, offering (a) start-ups and SMEs access to acceleration paths alongside innovation professionals and large corporations, and (b) other Italian entities a hub for building relationships and studying what is happening in the Silicon Valley economic ecosystem.
The efforts undertaken by the Italian Innovation and Culture Hub alongside Italian companies have grown exponentially since its inauguration. Six CALL4INNOVITs have been scheduled for 2024, bringing together Italy’s best and most innovative ideas in the fields of Generative AI; Robotic, Hardware and Advanced Materials; Life Science and Digital Health; Green Energy, CleanTech, ClimateTech and AgriFoodTech; Fintech and Insurtech; and Space Economy. Details on the program are available here: www.call4innovitsf.com CALL4INNOVIT – 2024 (notion.site)
All calls follow an identical procedure, consisting of three phases:
- Readiness. From the pool of applicants, the top 40 start-ups and 25 SMEs are selected to access a two-week online orientation and mentorship program;
- Experience. The selected 20 start-ups, 15 Scaleups and 15 SMEs participate in the acceleration batch in the Silicon Valley. The program includes one week of activities for SMEs and two weeks for start-ups, offering exclusive interactions with the innovative ecosystem of the Bay Area;
- Follow–up. Upon completion of the program, the start-ups and SMEs are guided through the processes of consolidating the relationships and activities initiated in the Silicon Valley during Phase 2 (duration: 1 week).
The seven editions of CALL4INNOVIT held between 2023 and today (June 2024) received a total of more than 700 applications, with more than 360 companies selected for online pre-acceleration programs. A total of 250 entrepreneurs, representing more than 150 start-ups and SMEs, flew to San Francisco to INNOVIT’s headquarters at 710 Sansome Street, and participated in more than 400 discussion and training sessions organised thanks to the support of a network of 500 mentors working in Big Tech (Microsoft, NVIDIA, Apple, Google, X, Amazon, Meta, Bosch, Oracle, …), of Silicon Valley venture capital funds, and of experts from prestigious universities such as Stanford University and UC Berkeley.
Confirming INNOVIT’s mission to support the Country System, the Hub opens its doors to corporations, local authorities and other interested entities by offering dedicated spaces and services. For example, Italgas opened its space at INNOVIT meeting with a select group of start-ups working in the energy and sustainability sectors. The Tuscany Region inaugurated ‘Casa Toscana’, an outpost desk funded by the Regional Council to support and promote in the heart of Silicon Valley the most innovative start-ups and business initiatives from its territory. Terna signed a Memorandum of Understanding with INNOVIT to develop, over the three years of the partnership, joint initiatives to accelerate and support high-potential Italian innovative companies that have come into contact with Terna. Intesa Sanpaolo signed an agreement to develop joint activities for the promotion of innovation programs between the two sides of the Atlantic.
Internationalisation of VC funds and investor attraction – Invest in Italy link
Italy’s attractiveness as a destination for foreign investment is growing strongly. The country, also thanks to NRRP resources, has considerably boosted investments in research and development, promoting production capacity in strategic value chains. Additionally, Italy has embarked on a strategic path to strengthen its status as an international business hub, displaying an unprecedented commitment to supporting companies seeking to become part of an extraordinary ecosystem.
In recent years, the Italian Government has introduced a series of legislative initiatives to encourage foreigners to relocate to Italy. Starting in 2015, a legislative body was approved to guarantee a series of fiscal and administrative benefits for foreign investors and workers wishing to live, work and do business in Italy, such as, for example, tax benefits for “impatriate” workers, a flat tax for high-net-worth individuals, and different types of visas for investors, start-ups and digital nomads. Further information is available at Homepage | Invest in Italy
With regard to venture capital, the 2-billion threshold was exceeded for the first time in 2022: an important milestone, achieved mainly thanks to some mega rounds. In 2022, investments in innovation and start-ups in Italy had in fact increased by 68%, (for a total value of 2.3 billion euros) about a billion more than in 2021. 2023 saw a downward trend with about 1.2 billion euros, although still in linear growth compared to recent years.
The first quarter of 2024 opened rather well and still up compared to the figures reported in the last quarter of 2023: 443 million euros were invested compared to 389 million euros in the fourth quarter of 2023, while investment rounds increased from 88 to 108. From a sectoral perspective, the ICT sector continues to monopolise the interest of venture capital investors, accounting for a 38% share (data updated to 2023): with 23% of deals involving start-ups in the digital consumer services sector and 77% involving companies with a focus on enterprise technology. The Italian Ministry of Foreign Affairs, through its several instruments, also works to attract venture capital investments to Italy, both for the financing of Italian start-ups and for the participation in Italian VC funds. In this regard, the Ministry operates in close contact and coordination with CDP Venture Capital.
In 2023, there were about 14,000 innovative start-ups and SMEs in Italy, with a total of 20,994 employees (average head count of 3.5), an average value of production per company of just over 196.6 thousand euros in the financial year 2021 and average assets of about 392 thousand euros (data down by about 15000 euros compared to 2020). Lastly, total production amounted to 1,951,608,630 euros, over 100 million euros lower than at the end of the previous quarter (2,068,143,474 euros), but still over 580 million euros higher than in the second quarter of 2022 (with budgetary data updated to 2020).[1]
RELEVANT CONTACTS:
Directorate General for Country Promotion
Office XI – Technological Innovation and Start-ups
E-mail: dgsp-11@esteri.it
[1] Report with MISE Innovative Startups Structural Data – National Data 4th Quarter 2022: 4_trimestre_2022.pdf (mise.gov.it)