Hiroshi Azuma, consul general of Japan to Italy

Despite somber economic forecasts around the world, Italians have been forging a pathway to long-term growth and stability to remain one of the world’s leading and innovative business cultures.

Berlusconi’s fresh mandate means that he will have a strengthened ability to push through many reforms needed to keep Italy more competitive in the global economy.

Among other things, the new prime minister has vowed to reduce the national debt, cut taxes and liberalize the economy. Many see his goal to slash corporate taxes as a step in the right direction to attract further investment in the country.

Move over, Bermuda

Comprised of Milan, Turin and Genoa, the so-called Industrial Triangle of Italy first experienced its boom in the 1960s as it pushed forward a modernization process that allowed it to surge ahead of its southern counterparts.

Today, the region stands as one of the “Four Engines of Europe,” a network made up of the most advanced European regions, which include Baden-Wurttemberg in Germany, Rhone-Alpes in France and Catalonia in Spain.

The Lombardy region alone has 800,000 companies and generates 296 billion euros a year, which represents 20 percent of the nation’s GDP.

Lombardy also has a much lower unemployment rate (around 3 percent) than the national average (6.8 percent), according to the office of the region of Lombardy.

Despite all the changes that have taken place in Italy over many decades, the backbone of the economy remains small and medium-size family businesses, which have been the face of Italian commerce for hundreds of years.

Companies like the publishing giant De Agostini, based in Novara for over 100 years, are thriving in Italy and throughout the world.

“Today, we are operating in over 30 countries and have relations with over 100 countries. Our growth and success can be partially attributed to our Italian identity and the excellent reputation that comes along with it,” says CEO Marco Drago.

Geox, a home-grown shoe and apparel company founded by Mario Moretti Polegato, is another prime example of Italian innovation and design that has become the No. 1 shoe company in Italy and No. 2 in the world in the “comfortable shoe” segment.

Already enjoying that sterling reputation for producing some of the world’s most coveted goods, northern Italy also holds a geographic advantage over many of its neighbors.

The region is in the center of the area bounded by the 5 Lisbon-Kiev corridor and by the Genoa-Rotterdam and Rome-Berlin northsouth routes, all vital trade links in the modern European economy.

A modern business renaissance?

One of the world's premier motorcycle brands, Ducati embodies the deeply ingrained spirit of technological and design innovation that Italy has become known for around the globe.

With the rise of globalization and stiff competition from other parts of Europe and the world, Milan has had to adapt to the ever-changing economic landscape.

In true Italian style, over the past five years the whole of Italy has taken its cue from Milan and reinvented itself. Italy is currently emerging as one of the world’s leading markets in a number of new areas.

Masahiro Hirai, director general of the Japan External Trade Organization (JETRO), points out that new industries such as biotechnology, telecommunications, medical technology and energy as well as the traditional automotive, textile and fashion industries are all thriving in the north.

Meanwhile, Turin has capitalized on the worldwide exposure it gained during the 2006 Winter Olympics and further bolstered its reputation for automotive excellence with the resurgence of ever-present Fiat.

Infrastructure, high technology, and a highly educated, creative and skilled workforce, are just a part of the long list of reasons many foreign companies operate in the north today.

Ducati, regarded as one of the premier motorcycle brands in the world and an Italian flagship company, is based in Bologna.

“Intelligence, design and passion are the three most important things that combine to make up our Italian identity. These go into our products and we come out with something special,” says Ducati CEO Gabriele Del Torchio.

Meanwhile, the center and south of Italy continue to grow and attract foreign investment in a number of different sectors.

Many large Japanese and multinational companies like Toyota are choosing to base their Italian operations in Rome due to its specialized, well-educated workforce, and convenient location as a hub between north and south Italy.

Strengthening infrastructure is another key to the country’s longterm growth and potential.

The government has established initiatives for the creation of new roads, subway and railway lines, all with the aim of attracting business and tourism throughout the country.

The long history of relations between Italy and Japan is still paying off today as well.

“The combination of Japanese efficiency and quality coupled with Italian design and innovation is a strong one. There is great respect and admiration between the two complementary cultures,” says Consul General of Japan Hiroshi Azuma.

President of the Lombardy Region Roberto Formigoni says, “The Japanese have been a trusted partner of Italians for over 100 years, and we will continue to foster this critical relationship, as it is not only mutually beneficial, but beneficial to the world.”

Milan received a huge honor this year when it won the bid to host the World Expo 2015, beating out its chief competitor city Izmir in Turkey.

Amid all these exciting changes, President of the Province of Milan Filipo Penati outlines the best reasons to invest in Italy.

“We should be able to convey our sense of beauty and culture to all who come here. If you invest in Italy, you should be aware that you are buying a piece of the Coliseum, a piece of “The Last Supper,” a piece of the Italian Renaissance. There is an enormous benefit to all who do this,” he says.