1 Italian Firms, Global Markets 22 May 2012 CCIAA Parma Fabio Sdogati

2 Table of Contents 1. The Global Scenario 2. Internationalization 1.1. The Great Recession 1.2. Great Divergences 2.2. Fragmentation of Production 2.1. Productivity

3 Japan UK USA DEUFRAITAESP Sources: IMF, World Economic Outlook, April The Global Scenario Forecasts: 2012 real GDP growth 1.1. The Great Recession

4 Mexico China Russia Brazil India Turkey The Global Scenario Forecasts: 2012 real GDP growth 1.1. The Great Recession Sources: IMF, World Economic Outlook, April 2012

5 1. The Global Scenario Divergences between OECD and non-OECD countries: Contribution to annualized real GDP 1.2. Great Divergences Sources: OECD, Economic Outlook No. 90, 28 November 2011 Note: Calculated using moving nominal GDP weights, PPP. OECD Non- OECD

6 Divergences between OECD and non-OECD countries: Growth of emerging markets (GDP, 2001=100) Source: IMF, World Economic Outlook, accessed on May The Global Scenario1.2. Great Divergences

7 1. The Global Scenario Divergences between Europe and the US: Unemployment (%) 1.2. Great Divergences 8.3% 10.8% Source: Eurostat, accessed on May 2012

8 2. Internationalization Ways out? Productivity Yet, from the Mediobanca–Unioncamere report: “La presenza delle medie imprese nei settori convenzionalmente definiti high tech è marginale tanto a livello nazionale quanto nel Nord Est. Secondo la metodologia OCSE (basata sull’intensità delle spese di ricerca) l’alta tecnologia copre appena il 3,1% del fatturato.” 2.1. Productivity

9 2. Internationalization In Italy, high-technology (and productive) firms are very rare: 2.1. Productivity Notes: VA = value added; CL = Cost of Labor Source: Mediobanca and Unioncamere, based on OCSE data

10 2. Internationalization Labor productivity (output per hour, 2002=100) 2.1. Productivity Source: US Bureau of Labor Statistics, accessed on May 2012

11 2. Internationalization Value added by enterprise size class, non-financial businesses, Productivity Source: Eurostat

12 2. Internationalization Number of persons employed by enterprise size class, non-financial, Productivity Source: Eurostat

13 2. Internationalization Larger firms enjoy higher productivity: 2.1. Productivity Source: Eurostat

14 2. Internationalization Larger firms enjoy higher productivity: 2.1. Productivity Source: Eurostat

15 Freer trade due to falling protectionist pressures Falling transport costs Falling coordination costs Globally integrated enterprise High growth of per capita income in emerging countries Slow growth and deindustrialization in high per capita income countries AND Mode 2: Global Market Seeking BOTH Mode 1: Global Resource Seeking 2. Internationalization2.2. Fragmentation of Production

16 2. Internationalization Share of intermediate goods in non-fuel merchandise trade, Fragmentation of Production Source: UN Comtrade 2011.