THE POWERPOINT PRESENTATION

THE PERFECT PLATFORM FOR
BIOTECHNOLOGY INDUSTRYMay 2019

COUNTRY OVERVIEWrd3 LARGESTEU ECONOMY
Italy has a large and skilled workforce.
Competitive location for investment. Cheaper
than USA and many Western Europeancompetitors.
Italy has among the lowest labour costs inWestern Europe

34540LABOUR
COST3530252015
More cost effective than most of the competing
economies

1050(manufacturing hourly compensation costs; UE €)Source: Eurostat 2018 (2017 data); Conference Board, International Labor Comparisons (2017 – data 2016)4rd3 LARGESTEU ECONOMY
Italy is open to Technology and 4.0
manufacturing
Italy is the 8th economy in the world, based onstrong export
Ranks 8th in 2019 for FDI attractiveness, +10
than in 2015 (FDI CI AT Kearney)

5ECONOMICOUTLOOK
1% GDP growth forecast for 2019(2018 German GDP 0,6%)
Export increased by 3.5% between 2017-2018
New employment policies IoT based
A new single website portal for incentives toinvest now available

6

CORPORATE TAXATION REFORM
machinery & industrial equipment (Hyper depreciation
170%-100%-50% and Super-depreciation: over-valuationof investments in newly purchased 4.0 technologies)

In the last years the Italian Parliament approved newlegislation, including tax incentives, specifically aimed at making
Italy an attractive location for investment in manufacturing andR&D.

Other tax incentives are:Among those specific tax incentives, the following are particularlyrelevant:

The “Destination Italy” Decree• Patent box– a 5 year-elective regime will grant a partial tax exemption
on income derived from qualifying intangible assets(patents, know-how, trademarks) as long as the Italiancompany performs R&D activities• R&D tax credit– It provides a 25% or 50% tax credit on R&D incremental
expenses (at least equal to € 30 K or more), calculated ona fixed basis given by the average of R&D expenses
incurred in the previous 3-years period.
• Tax credits/incentives for the purchase of digital– created a specific and dedicated desk of the Revenue Agency(Agenzia delle Entrate) in order to help and provide
information to foreign investors– enhanced the tax ruling procedures, by extending the validity
period of the preventive rulings from 3 to 5 years and including
also the existence of Italian permanent establishments offoreign companies– 50% bonus on social security contribution for companies hiringpeople under 35 recruited in 2019-2020 (100% in SouthernRegions)

7

SEZI O N E

BIOTECH
INDUSTRY
THE MOVE FROM TREATMENT TO PREVENTION,DIAGNOSTICS AND CURE…
Any technological application that uses biologicalsystems, living organisms, or derivatives thereof, tomake or modify products or processes for specificuse. White biotechnology is the application ofbiotechnology for industrial purposes. It includes thepractice of using cells such as micro-organisms, orcomponents of cells like enzymes, to generateindustrially useful products.

9BIOTECH RESEARCH
Tech Districts
Scientific and tecnological Parks
Distretto H-BIO Puglia
PST della Sardegna - Porto Conte
POINT POlo INnovazione Tecnologica provincia di Bergamo Medis – Distretto meccatronico
Di.T.N.E. - Distretto Tecnologico Nazionale sull'Energia
Polaris - PST della Sardegna - Pula
ComoNext
Parco Scientifico e Tecnologico della Sicilia - Catania
Distretto Agro-alimentare Regionale D.A.Re. ScarlConsorzio PST Multisettoriale Magna Graecia
DHITECH Scarl - Distretto TEcnologico High TechPa.L.MerTecnopolo di Mirandola
Parco Scientifico biotecnologico San Raffaele
Imast S.c.a.r.l.
Parco Tecnologico Padano
Atcoroglio
Parco Scientifico e Tecnologico Galileo
Polo Tecnologico di Pavia
Parco Scientifico e Tecnologico della Sicilia - Palermo
Polo tecnologico di Navacchio
CERFITT
Sardegna DistrICT - DT Biomedicina-Tecnologie SaluteTecnopolo Tiburtino
Sardegna DistrICT - DT Tecnologie e Comunicazioni
Tecnopolo di Castel Romano
DTA - Distretto Tecnologico Aerospaziale
Fondazione Toscana Life Sciences
Habitech Distretto Tecnologico Trentino
Parco Scientifico e Tecnologico Kilometro Rosso
Fondazione Torino Wireless
Sviluppumbria
Centro di Biomedicina Molecolare (CBM)
3A Parco Tecnologico Agroalimentare dell'Umbria
BioTecnoMed
AREA Science Park
Other Centres
Polo ICT
ART-ER
Environment Park
C.R.M.P.A. Centro Ricerca Matematica Pura Applicata
Bioindustry Park Silvano Fumero S.p.A.
CUSSMAC
Friuli Innovazione - Centro ricerca e trasferimento tecnologico
Tis Innovation Park
VEGA VEnice GAteway for Science and Technology
Tecnogranda
DT Sicilia Micro e Nano sistemi

Source: https://www.bancaditalia.it/pubblicazioni/temi-discussione/2014/2014-0983/en_tema_983.pdf; http://www.apsti.it/en/associates/members-list/; Web; Press10

AND UPTODATE, NEW IDEAS…
CONSORZIO INTERUNIVERSITARIO BIOTECNOLOGIEUNIVERSITIESFACULTIES AND
DEPARTMENTS

http://www.cibiotech.it/

BIOTECHNOLOGY - ENGINEERING – CHEMISTRY - PHARMACY – MEDICAL UNIVERSITIESASS. NAZ. BIOTECNOLOGI ITALIANI

http://www.biotecnologi.org/‘’ASSOCIAZIONE FARMACEUTICA INDUSTRIA’’

http://www.afiscientifica.it/
11

NATIONAL TECH CLUSTERSMINISTRY OF EDUCATION, UNIVERSITY AND RESEARCH•AEROSPACE TECHNOLOGYROME

http://www.ctna.it/• AGRIFOOD

ROME

http://www.clusteragrifood.it/en/• GREEN CHEMISTRYMILAN

http://www.clusterspring.it/home/• INTELLIGENT FACTORIESBOLOGNA

http://www.fabbricaintelligente.it/en/• CLUSTER TRASPORTIROME• LIFE SCIENCEMILAN• SMART LIVING TECHNOLOGIESANCONA

http://www.smartlivingtech.it/en• SMART COMMUNITIES TECH

TURIN

http://www.smartcommunitiestech.it/en/

http://www.clustertrasporti.it/
http://www.clusteralisei.it/en/

What’s coming next…
• HERITAGE TECH
• DESIGN, MADE IN ITALY• SEA ECONOMICS• ENERGY

12

ITALIAN TECHNOLOGY INSTITUT
11 scientific programs of three types:

IIT’s production includes 8569 publications,over 150 European projects and 18 ERC(European Research Council) winners, morethan 700 active patent applications, 17established start-ups and more than 20
under due diligence.

Since 2009, the Institute’s scientific activity
has been further strengthened with thecreation of eleven IIT research centres inItaly (in Turin, two in Milan, Trento, Rome,
two in Pisa, Naples, Lecce, Ferrara) and twooutstations located abroad (MIT andHarvard in the US)

Source: https://www.iit.it/research/13-research/74-programs

Technology Programs, primarily aimed at developing High techresearch in collaboration with external entities and industries:
Portable Energy, Robotic Rehabilitation, Graphene

Core Programs, dedicated to the basic research activities
traditionally developed by IIT :Brain Science, Robotics, New Materials, Materials
Chemistry

Cross Disciplinary Programs, primarily devoted to high riskhigh return research both basic or applied:Interaction, Health Technologies, Nano-Bio Photonics,
Computation

NationalFoundation
financed by theState to conductscientific research
for the purpose oftechnologicaldevelopment. IITaims to promote
excellence in basicand appliedresearch and topromote thedevelopment of thenational economy.
Scientists with 21
different
profiles (spanningfrom medicine toengineering)collaborate to the
execution of theStrategic plan.

13

I TAL I AN T E C H N O L O G Y I N S T I TU T E

Application portfolio by platform (October 11th, 2017)%

138

TECHNOLOGY
TRANSFER

%

212

%

INVENTIONS AND PATENTS
PORTFOLIO

166
63%

Strong points

Source: https://www.iit.it/about-us/facts-and-figures

14

ABUNDANT AND SKILLED WORKFORCE
Italy has some of the world’s best engineering
universities. Indeed, engineering is the 2nd highest
course for enrolment in the country – 225,619
currently studying an engineering discipline.1
The Technological Departments of the ItalianUniversities annually produce a pool of graduateswith the knowledge and industry experience toimmediately enter the work force.

The engineering sector currently employsaround 417,000 people in Italy.2

And much more.

15%
15%

Source: 1Ministry of Education, 2Press; OECD Library “Education at a glance 2018” (September 2018), indicator B5, https://www.oecd-ilibrary.org/docserver/eag-2018-18en.pdf?expires=1559199423&id=id&accname=guest&checksum=8B9275D6557CD9E2EF53800E37CA07E2, p. 215; http://dati.istat.it/Index.aspx?DataSetCode=INDUNIV15

C O M PAN I ES ASSO C I ATI O N S…RIGHT DEVELOPMENTFEDERCHIMICA ASSOBIOTECASCHIMFARMAFEDERCHIMICA

https://assobiotec.federchimica.it/en/home
https://aschimfarma.federchimica.it/

FARMINDUSTRIA

https://www.farmindustria.it/

ASSOBIOMEDICA

https://www.assobiomedica.it/it/index.html16INVEST IN ITALIAN BIOTECHNOLOGY2018

ITALIAN INNOVATION DAYS, ASIA AND…
NORTH AMERICA

2019
BIAT Sections
Aerospace
Environment
Biotechnologies
Greentech
ICT
Nanotechnologies
New materials
Mechatronics
Smart Communities technologies

17TURNOVER
FIRMS

Green biotech
firms
8%

Green biotech
firms
9%

BIOTECHSECTORCOMPOSITION
Red Biotech, Italy is a pioneer and a global leader

GPTA firms
12%

BIOTECHSECTORWhitebiotech
firms
17%

Red biotech
firms

GPTA
firms
1%

Redbiotech
firms
74%

50%

White biotech
firms
29%

✓ 295 Firms in the field of human health✓ 74% of the total Italian Biotech turnover✓ 76% of employees involved in R&D activities✓ 91% of the total Biotech R&D investment (1.8bn)

1st Country by number of Advanced Therapy products authorized by
the EU (3 out of 6)

Source: ‘The Italian Biotech Industry – Facts & Figures’, BioInItaly Report 2018; https://www.ema.europa.eu/en/documents/presentation/presentation-advanced-therapymedicinal-products-atmps-atmp-regulation-patrick-celis_en.pdf

18TURNOVER
Green
biotech firms
9%BIOTECHSECTORCOMPOSITION
Green Biotech, agriculture and zootechnics area,

more than one company on two is an exporter

GPTA firms
12%

FIRMS

BIOTECHSECTOR

Green biotech
firms
8%

GPTA
firms
1%

Whitebiotech
firms
17%

Redbiotech
firms
74%

Red biotech
firms
50%

Whitebiotech firms
29%White Biotech, agriculture and zootechnics area,

more than one company on two is an exporter✓ 10%~ on total Biotech Firms in the field of Green✓ 30%~ on total Biotech Firms in White biotech✓ 900 mln~ total turnover✓ 2 bln~ total turnover✓ 80% are small or micro enterprices✓ 500 ~ R&D staff✓ +50% R&D investment on previous years✓ 250 mln R&D investment

from plant breeding innovation and genetic editing to biotransformations through enzymatic catalysis for the requalification of traditional industrial processes
and the preparation of chemical compounds by fermentation, from the production of bio-plastics to bioremediation and environmental diagnostics
Source: ‘The Italian Biotech Industry – Facts & Figures’, BioInItaly Report 2018

19Biotechnologies firms

BIOTECH
WHERE IN
ITALY
Italian biotechnologies companies widespreadthroughout the national territory, even if
concentrated for over 80% in the center-north of thecountry.

Almost 90% of turnover from biotech activities isachieved in only 3 regions, while investments in R &D are supported for over 87% by companies
located in just 5 regions.

Source: “Centro studi Assobiotec”, ENEA – Servizio Industria e associazioni imprenditoriali (April 2018)20

Biotech Turnover: where to invest

10%

32%
16%

BIOTECHEXPORT

21%

Biotech export is highly polarized at a territorial levelaround four regions (Lombardy, Lazio, Piedmont andTuscany) for more than 90% of the total
Biotech companies are characterized by a highprojection on foreign markets (38% of exportingcompanies in 2015). The share of exporting
companies has tended to increase in recent years(with 23% of exporting companies in 2015), widelyover the average of manufacturing sector and thetotal Italian industry

Source: “Centro studi Assobiotec”, ENEA – Servizio Industria e associazioni imprenditoriali (April 2018)21

ITALIAN BIOTECH R&D INVESTMENTS TREND(2014=100)

WHAT ABOUTRESEARCH
Investments in biotech R&D represent 35% of total R&D
investments. Around 764 million euros on biotech R&D,
up 22% compared to 2014
33% of total biotech investments are destined to financeresearch activities carried out in outsourcing, while 67%of research activities are carried out internally incompanies
In the last 3 years in Italy the growth in internal R&D
investments dedicated to biotech has been equal to
16% for all capital enterprises, and 29% for companies
dedicated to biotech R&D with Italian capital

Source: “Centro studi Assobiotec”, ENEA – Servizio Industria e associazioni imprenditoriali (May 2019)22REGIONAL CLUSTERS AND EXPORT

http://www.lombardialifesciences.it/en/

http://www.lazioinnova.it/il-distrettotecnologico-delle-bioscienze/

http://www.toscanalifesciences.org/en/

Source: ‘’Intesa Sanpaolo, 2018, Monitor dei Poli Tecnologici’’; WebSUBSTANTIAL
ADDED VALUE
In the national ranking of the technological poles ofall sectors for export in Italy, the first two arepharma/biotech, Lazio and Lombardy, and thepharma/biotech districts of Tuscany and Campania
are respectively in fourth and seventh place. The
pharmaceutical sector represents 55% of the totalexport of Italian technological poles23

B EST PR AC TI C ES

GENOMEEDITING
Italian researchers and companies are atforefront of the DNA engineering issue‘EvoCas9’
CRISPRIn nature, ‘cas’ protheins update bacterial
genome enabling evolution. CRISPR is thetechnique used by researchers for this purpose tomanipulate DNA

Source: https://ghr.nlm.nih.gov/primer/genomicresearch/genomeediting

is an evolution of CRISPR on genetic manipulation, an Italian‘Molecular scissors’, the world best technique at this moment
developed from CIBIO (University of Trento)24

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