Riccardo Gallo - Ipi (Italy)1 Korea – Italy Business Forum Seoul Apr 18, 2007 Investment Opportunities emerging from the Korea – Italy Industry Workshop Seoul Apr 17, 2007 Riccardo Gallo, Chairman of IPI (Italian Institute for Industrial Promotion)

Riccardo Gallo - Ipi (Italy)2  Entrepreneurship  Quality of products  Strong identification with Made in Italy industries  Industrial clusters  Export oriented enterprises  Market niches specialization Main features of the Italian productive system

Riccardo Gallo - Ipi (Italy)3 Made in Italy key-factors  Specialization and internationally recognized excellence in traditional systems: o Fashion (textile, clothing, shoes, bags, glasses, jewellery, accessories) o Home (furniture, light, tile and ceramic) o Food (agro-industry and transformation)  Also defined as Italian life-style: distinctive elements find roots in our history and culture  Individual features: creativity, design, luxury, taylor made and continuous product innovation

Riccardo Gallo - Ipi (Italy)4 Italian exportations prices’ trend

Riccardo Gallo - Ipi (Italy)5 Italian exportations prices’ trend  Possible reasons for this trend, among others: o an intra-sectoral wide turnaround, followed by:  a falling out and/or a transfer abroad of less efficient enterprises or of their single phases  a qualitative upgrading of remaining productions  a shifting of many Made in Italy districts towards both products for final consumption and machinery for manufacturing  Frequent presence of the machinery and equipment industry related to the sector as a source of continuous innovation

Riccardo Gallo - Ipi (Italy)6 The Made in Italy System  A new value chain as an integrated system: o Living, Wearing, Eating  But also and overall: o The Machine Industry, which has high competitiveness and, at the same time, is growing pushed by the market demand of Made in Italy o Machines and systems able “to match tech know-how with creative eclecticism” (Mr. A. Delachi, Federmacchine – Federation of 10 Italian Associations of Manufacturers of capital goods)

Riccardo Gallo - Ipi (Italy)7 Machine Industry for Made in Italy

Riccardo Gallo - Ipi (Italy)8 The Italian Textile Machinery Industry  Italy: 2 nd global exporter of Textile Machinery (TM), with 11% of market share (2005)  China: the main country that Italy provides with TM  Italian TM producers: o specialized in every single stage of the Mftg cycle o highly innovative in the widest market segments range (Mr. G. Sora, Association of Italian Textile Machine Manufacturers)

Riccardo Gallo - Ipi (Italy)9 Korea – Italy: Machine Industry and Hi-Technology  The Italian Machine Industry’s aims in Korea: o to improve its own sales o to develop co-operation with Korean partners  by a model (why not?) similar to the ST-Hynix successful one  with Korean government aid, for instance in terms of: tax incentives, R&D and technical training funding, business match making and technical standards setting (Mr. R. Sirtori, ST VP CFO Asia)

Riccardo Gallo - Ipi (Italy)10 Korea – Italy: Neo-renewable Energy  The Renewable Energies Industry is moving its first steps both in Korea and in Italy: o Italy’s policies are defined at EU level o Korea offers a direct relationship to Italy o As Energy represents one of the most important limits to economic and social development of the world, a direct relationship between Korea and Italy cannot conflict with the membership of Italy in the EU (Mr. S. Taglienti, Italian National Agency for New Technologies, Energy and the Enviroment)