Italy: A New European Pharmaceutical Hub

Abstract

The chapter analyzes a sector which in recent years has acquired a prominent role in the Italian economy. The pharmaceutical sector of late has experienced considerable growth due to numerous investments from foreign multinationals attracted by Italian manufacturing sites, research centers, and specialized personnel at competitive rates. Consequently, Italy is strategically placed for becoming a major European pharmaceutical hub. In fact, it is already the second largest EU-28 pharmaceutical producer in terms of value. The chapter begins with a description of the Italian pharmaceutical sector and then focuses on the regions in which pharma has developed the most. It also provides a European comparison of how five Italian regions rank within the classification of large European pharmaceutical regions. Production, investment and exports are analyzed in terms of the Italian pharmaceutical industry’s performance nationally and internationally. Research results show that from 1991 to 2014 Italian export quotas of medicines and pharmaceutical preparations, as a share of total exports, increased from 0.5 to 4.5 %. Italy’s ranking in the classification of exported pharma products moved up from 53rd place in 1991 to 4th place in 2014. Internationally, Italy over the last five years, has had the highest increase in absolute value of pharmaceutical exports ($8.1 billion). Between 2010 and 2014, its world market share increased by 2 % from 4.5 to 6.5 %. A comparison of the major European nations, shows that Germany increased by 1 %, while other large EU countries saw a decrease in their export share of pharmaceutical products. Last, the chapter concludes with a brief analysis of the biotech sector. Italy has SMEs exclusively dedicated to biotechnologies as well as large pharmaceutical companies which also specialize in biotech.