The Glass Half Full of Italian Innovation (ECONOMIA & MANAGEMENT)

Summary

• Italy ranks among the top ten countries globally for scientific output with over 2.6 million publications.p.1
• The business birth rate in Italy is 7.9%, compared to an EU average of 10.5%.p.2
• Venture capital investment in Italy between 2020 and 2024 reached approximately 14% of France and Germany and 6% of the UK.p.2
• Lombardy hosts 27.5% of Italy's innovative startups (3,182 out of 11,565), with 72.5% of those based in Milan.p.2
• Milan accounts for over 50% of Italian VC deals and capital invested, but ranks 15th in Europe for startup attraction.p.3
• TEF launched the TEF Ignition program targeting 200 student teams annually with grants of €2,000.p.5

Key insights

1. Italy produces high-quality scientific research but struggles to convert academic excellence into new scalable businesses.p.1
2. Venture capital funding in Italy over the 2020-2024 period was equal to just 14% of levels seen in France and Germany.p.2
3. Over 20,000 Italian university graduates aged 25 to 34 moved abroad in 2023, exacerbating national brain drain.p.2
4. Milan dominates the national startup landscape with over 50% of VC investments, yet ranks only 15th among European startup hubs.p.3
5. Excessive fragmentation and localism among Italian incubators and innovation hubs prevent them from reaching critical scale.p.3
6. Tech Europe Foundation was created as a non-profit effort by academic and institutional partners to strengthen Italy's deep tech startup creation.p.4
7. TEF has partnered with Creative Destruction Lab to launch CDL-Milan, supporting 20 deep tech startups in Advanced Manufacturing.p.5