nterviewwith the 67-

years old Milandesigner who sayshe now considershimself more of anentreprenuer thana designer. Aftere n d i n g h i sd e c a d e s - l o n gagreement withGft, Armani willnow produce anddistribute hisproducts himself.There are plansfor accessories and home furnishings, but not for astock market listing."At this point I think of myself more as an entrepreneurthan a designer", says a very tan Giorgio Armani, dressedin his usual blue T-shirt and matching trousers, and sittingin the library of his Milan headquarters in Via Borgonuovo.In recent months the internationally-known designer hasoverseen his company's upstream re-organisation, bringingto a close the long-term licensing agreement with Piedmontclothing producer Gft and starting his own productionof men's and women's collections, in collaboration withhigh-level specialists such as Zegna (men's clothing)and Vestimenta. Downstream, investment in distributionand brand-name stores has been continuing apace. Butwhat is the outlook?Q. Mr. Armani, one doesn't become an entrepreneur overnight, you know that don't you?

entire life and the idea of seeing others managing itwould have been very difficult, no, impossible.Q. So you were never really close to selling?A. Well, let's say I had a few sleepless nights, askingmyself if I was doing the right thing by saying no. I wascertainly attracted by the amount of money involvedbut, you know, I have less and less time in which tospend all this money and I don't even know what I couldbuy. It's true that it’s better to have money than not tohave it, but when it gets to be over a certain amount itbegins to matter much less, and I say that with all therespect in the world for all those people who waitdesperately for their monthly pay-checks.Q. Which of the two giants appealed to you more?A. Oh, they were both delightfully kind, telling me Iwouldn't have had any more worries and that they wouldhave seen to everything. An elegant approach but whenI hear words like that I get furious.Q. The trend towards brand integration is snowballingnow, don't you think?A. Yes, but in some cases it's turning out to be moredifficult than one thought. When the supply of fashionitems becomes so enormous, the consumer tends tochoose the leading brand, which means that others areleft behind. And to establish real credibility in the pret-a-porter sector is by no means a simple matter.

A. Of course, but all through my career I've alwaysthrown myself into things without really thinking veryhard about it and without real training. I became adesigner without knowing how to draw, and now I ambecoming an entrepreneur, gaining experience as I goalong. Remember, I grew up in a small, agriculturalprovincial town (Piacenza) and I brought with me thefarmer's sixth sense about how much one can get doneand when it is advisable to take a risk. I’ve now surroundedmyself with specialists and I've been reading up on howthe decision-making process should develop in a company.But the long and short of it for me is that the entrepreneuris the one who at the end decides yes or no and I likethat even though it's a lot of responsibility, because ouremployees now number almost 4,000 world wide.Q. Gft has been your partner for a very long time. Areyou sorry that the relationship has come to an end?A. Very. It's a fantastic company and the Giorgio Armaniname owes a great deal to it, since it was Gft which hadfaith in us from the start.Q. You have been courted for a long time by two of theluxury goods greats, Lvmh and Gucci. Have you definitelydecided not to sell out to one of them?A. Nothing in life is definitive but for the time beingthis is not a solution which interests me. It may be thatI was able to resist selling out because of my involvementin the move into new sectors such as accessories andhome furnishings.Q. Yes, but wouldn't a launch into accessories have beeneasier alongside either Lvmh o Gucci, which are specialistsin that field?A. Yes, but it would have kept me from seeing just whatI myself could accomplish. This kind of work is my

1

OCTOBER 2001No. 14

I

GIORGIO ARMANI: A DESIGNER TURNS ENTREPRENEUR

he picture shows ItalianForeign Minister Renato

Ruggiero during his visit toIsrael on August 29, 2001.The mission took place in theframework of Europe’s stepped-up efforts to overcome thepresent critical situation in theMiddle East. Minister Ruggieromet with Prime Minister ArielSharon and his counterpart,Foreign Minister Shimon Peres.He said he hoped to come againon an official visit in autumn.<>

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(continued on page 2)

Calendar of

Embassy of Italy4, Weizman St. Tel AvivTel: 03-6964223 Fax: 03-6918428E-mail:italemb@netvision.net.ilwww.italian-embassy-israel.org

Edited by:The Italian Embassy in Tel Aviv

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GIORGIO ARMANI: A DESIGNER TURNSENTREPRENEUR

ITALIAN FOREIGN MINISTER RENATO RUGGIEROVISITED ISRAEL

RENATO RUGGIEROProfile of the Minister of Foreign Affairs

SCIENTIFIC FLASH

ITALY'S EXPORT SUCCESS STORIES

ITALY AS FOREIGN INVESTMENT SITE:THE COMPARATIVE ADVANTAGE OF THE ICTSECTOR

ITALIAN NATIONAL INSTITUTE OF HEALTH

ITALY AND U.S. JOIN FORCES IN FIGHT AGAINSTANTIQUITIES SMUGGLING

EVENTS IN ITALY

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Inside

ITALIAN FOREIGN MINISTERRENATO RUGGIERO VISITED ISRAEL

Italian Foreign Minister Renato Ruggiero (left), Israeli Prime Minister Ariel Sharon(right), Israel's Ambassador to Italy Ehud Gol (center). At the far right, AmbassadorGiuseppe Baldocci, Secretary General of the Italian Ministry of Foreign Affairs

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Giorgio Armani was born July 11,1934 in Piacenza (about 50 milessouth of Milan, in Emilia Romagna)

Groups like Louis Vuiton areknown for accessories and the

Japanese tourists who crowd into the Lvmh mega-storeon the Champs Elysees are to buy purses, bags, walletsand belts and certainly not clothing. In the same sense,turning John Galliano's ideas for Christian Dior intosaleable pret-a-porter is also difficult. In fact, BernardArnault asked me if I wanted to assume the role of afilter, someone who can look at what he sends down therunway and decide whether it can also be sold. I don'tthink Lvmh knows how to do this at the moment. Theyhave top designers but you can't become credible overnightjust on the basis of huge advertising campaigns.Q. What about Gucci?A. Well, they seem to be doing more research and TomFord is a man who knows how to adapt runway stylesfor stores.

Q. Do you think at all about who will take over fromyou?A. Well, I'm 67 now but I have not decided anythingalong the lines of "at 70, I'll stop working". It's hard tothink concretely about such an issue. But I know I'vecreated something which in the future will have to beable to function without my presence. So it is for thisreason that I'm re-structuring the company and trainingsome very capable people. In fashion, if there is no oneheir, one works with a team of creative people whoprovide one with a basis for work.Q. How long do you think it will be before your newcompany is structurally complete?A. In another year everything will be working smoothly.And in the meantime, we are looking into other sectorssuch as luxury watches and jewellery, as well as intoexpansion into previously untapped markets such as

Russia and China. And we have also been thinking aboutgetting into the hotel sector, possibly - to begin with -with furnishings. This is a business in which you simplycan't sit still. The competition is always breathing downyour neck.Q. A final question. What about the stock market? Haveyou definitely put aside plans for a listing?A. At the moment we are perfectly able to finance ourprojects without going onto the stock market to raisecapital. If we were to become a listed company, I wouldhave to be constantly justifying certain expenses to myshareholders, expenditures that are sometimes absurdlyenormous but which can produce an enormous return.And I don't see why I should.

Il Sole 24 Ore.comSeptember 8, 2001By Paola Bottelli, Milan <>

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enato Ruggiero was bornin Naples on 9 April

1930. After graduating in lawfrom the University of Naplesin 1953, he entered the Italiandiplomatic service.His first posting abroad wasto the Italian Consulate inSao Paolo, Brazil. In January1959, he was assigned to theItalian Embassy in Moscow,where he worked towards thenormalisation of cultural andtrade relations between theSoviet Union and Italy duringthe years of destalinisation, theconfrontation in Berlin and theemerging Sino-Soviet conflict.In 1962 he was posted to theItalian Embassy in Washington, where he monitoredthe last phase of the Kennedy Administration, thedevelopment of the Cuban Missile Crisis, East-Westrelations and the Vietnam War.In 1964 he returned to Rome as Head of the PoliticalAffairs Secretariat of the Foreign Ministry. In1966 he was assigned to the Italian Embassy inBelgrade, where he monitored developments in theCold War and the events of the 1968 Prague Spring.After a short interval in Rome, he began the secondphase of his diplomatic career in 1969. Posted to theItalian Mission to the European Community inBrussels, he negotiated the terms for an agreementon social security for migrant workers. In July 1970he was appointed Chef de Cabinet of the Presidentof the European Commission, Franco Malfatti. Inthis role, he participated in the negotiations that ledto the accession of the United Kingdom, Denmarkand Ireland to the EEC, and in the development ofthe first European Economic and Monetary Unionproject and in the official launch of the EuropeanUnion project at the European Summit in Paris in1972.After a brief period as Political Advisor to thePresident of the European Commission, SiccoMansholt, he was appointed Director General forRegional Policy at the European Commission inBrussels. In this role he negotiated and created, withCommissioner George Thomson, the EuropeanRegional Development Fund, the most significantinstrument of financial support for the less developedregions in Europe.In 1977 he was appointed Spokesman of the Presidentof the European Commission, Roy Jenkins, whomhe assisted in the negotiations that led to the launchof the European Monetary System.

Between 1978 - the year he returned to the ForeignMinistry in Rome - and 1987 Ruggiero occupiedseveral positions at the highest level of the Italiandiplomatic service: he negotiated Italy’s entry intothe European Monetary System, was the DiplomaticAdvisor to the Prime Minister and the Chef deCabinet of two Foreign Ministers. In 1980, he wasappointed Ambassador and returned to Brussels asItaly’s Permanent Representative to the EuropeanCommunity. After four years in that position, hewas appointed DirectorGeneral for Economic Affairsat the Foreign Ministry inRome (1984-1985) and thenreached the highest positionin the diplomatic service whenhe became Secretary Generalof the Foreign Ministry (1985-1987). During this period hewas a l so the PersonalRepresentative of the PrimeMinister at six G7 summits,and the Chairman of theExecutive Committee of theOECD in Paris.In 1987, Ambassador Ruggierowas appointed Italian Ministerfor Foreign Trade, a post heheld until 1991. During thisperiod, he implemented the programme of liberalisationof Italy’s foreign trade and capital movements.After his service in government, Renato Ruggieroleft the diplomatic service and joined the board ofdirectors of FIAT and of several other Italian,European and American companies, either as a directoror as an international consultant.

In 1995, Ambassador Ruggierowas elected Director Generalo f t h e W o r l d Tr a d eOrganisation in Geneva by its130 member countries, andserved in that role until 1999.During this period, he promotedthe implementation of a tradedispute settlement system basedon the rule of law and not onpower. He also promoted thefurther inclusion of developingcountries in trade flows, andthe liberalisation of trade withthe 48 least developed countries.In addition, AmbassadorRuggiero began an institutionald ia logue wi th the Non-Governmental Organisations

( N G O s ) . D u r i n g h i s t e r m a t t h e W TO ,telecommunications, information technology andfinancial services were liberalised on a global basis.Following his tenure at the WTO, AmbassadorRuggiero was appointed Chairman of ENI. He leftthat position in September 1999 and became Vice-Chairman of Schroder Salomon Smith BarneyInternational and Chairman of Schroder SalomonSmith Barney Italy. He also served on the Boardof Directors or Advisory Boards of several important

companies in Italy and therest of the world.He was appointed Ministerfor Foreign Affairs in thesecond Government ofPrime Minister SilvioBerlusconi on 11 June 2001.In recognit ion of hiscontribution to public life,the President of the ItalianRepublic made AmbassadorRuggiero a Knight of theGrand Cross. Foreigngovernments have alsorecognised his work in thecause of international tradeand diplomacy. Her MajestyQueen Elizabeth II bestowedupon him the honorary

award of Knight Commander of the Order of St.Michael and St. George; His Majesty Emperor Hirohitoof Japan honoured him with the Grand Cordon ofthe Order of the Sacred Treasure; and His HolinessPope John Paul II named him Knight Grand Crossof the equestrian order of St. Gregory the Great.<>

R Renato Ruggiero

Profile of theMinister ofForeign Affairs

(continued from page 1)

Italian Foreign Minister Renato Ruggiero shakes handswith his counterpart Minister Shimon Peres at a pressconference in Jerusalem on 29 August, 2001.

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Scientific Flash

n agreement ons c i e n t i f i c

cooperation in the areaof computer science was

recently signed between the newly founded CaesareaEdmond Benjamin de Rothschild Foundation Institutefor Interdisciplinary Applications of Computer Science(University of Haifa) and the Institute for Researchin Science and Technology (Trento, Italy) .This agreement, ratified by their respective institutions,had been envisioned for some time by Professor MartinGolumbic, Director of the Caesarea Rothschild Institutein Haifa and Professor Oliviero Stock, the Director ofITC-IRST, as a way of increasing and strengtheningresearch collaboration. It will commence activities inthe coming academic year with the exchange of scientistsbetween Haifa and Trento, and continue with proposalsfor joint projects through the European Union. "Thisnew initiative will begin by building upon existing areasof scientific relations already active among Israeli andItalian researchers, such as computational linguistics,neural networks, algorithmic and artificial intelligence",said Prof. Golumbic. "The new Caesarea RothschildInstitute will have much to benefit from the experienceand expertise at IRST, not only on specific researchprojects, but especially in developing further contactsand joint participation in European Union programs.""For IRST it is an important opportunity to work togetherwith a very qualified Israeli research centre, that willinvolve a number of Haifa researchers of absoluteexcellence" said Stock.This is not their first joint project. In 1992 and 1996,Golumbic and Stock organized binational workshopson Artificial Intelligence in Israel and in Italy sponsoredby the Israeli Ministry of Science and the Italian NationalResearch Council (CNR). <>

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he most powerful telescope in the worldhas been developed at the factory of Ansaldo-

Comazzi in Milan. It will enable scientists toobserve planets discovered around other stars. Thetelescope will be disassembled and transported toArizona, where it will be completed, reassembledand installed at the 2,400 meter summit of Mt.Graham.The "Large Binocular Telescope" (LBT), as it iscalled, with its two huge mirrors 8.4 meters indiameter, looks like gigantic glasses. This feature,which is based on a technique of observation calledinterferometry, makes it the most powerful telescopein the world. It is capable of observing the coreof galaxies, the beginning of the birth of stars andthe planets around other stars with detail and claritythat were hitherto impossible. The new telescopeis the result of collaboration between the UnitedStates (50%), Italy and Germany (25% participation,each).

The two huge mirrors were developed in the UnitedStates, and the secondary mirrors which form the

heart of the telescope, in Italy.They are only 91 centimeters in diameter, but arethe result of a sophisticated technology that eliminatesthe defects of observation through the atmosphere.Each one is equipped with 672 actuators to correct,in less than a millisecond, the optical distortionswith accuracy of millionths of a millimeter. Inpractical terms, the telescope will be able to observeto the same depth as the Hubble Telescope (whichorbits around the Earth) but with an angular resolutionten times greater.A wide field camera which has been developed bythe University of Padua, will be installed in thefirst focus of the LBT. It will be able to observevery weak and very far-away objects in the depthsof the cosmos.The new Italian-German-American Observatoryof Arizona (which will cost one hundred millionUS dollars) will be operational in 2004, with thefirst mirror, and in 2005 with both mirrors. <>

TA TELESCOPE THAT WILL OBSERVE PLANETS OF OTHER STARS

h e I t a l i a np a c k i n g a n d

packaging machineryindustry is one of thehighlights of the Italianeconomy. With around250 companies on anindustrial level, plus ahundred craftsmanship-

based production units, this industry closed theyear 2000 with a turnover equal to Euro 2,561,63millio. 81% of the overall turnover was fromexports.The success of this industry is the result of a numberof factors including extreme production flexibilitycombined with high leveltechnological innovation;providing the customer with“tailor-made” solutions;competitiveness. These firmshave given rise to a networkof large integrated groupsand small and medium-sizedsuper-specialised companies.Most of the production isabsorbed by the food andbeverage sector (40% of theindustry’s turnover), followedby the pharmaceutical-cosmetics-toiletries sectorwith almost 20%; then thechemical-petrochemicalsector with around 10%. Therest is used in differentsectors, especially tobacco, where Italian technologyboasts a great tradition.In support of the industry and its globalisation process,UCIMA, the Italian Association of AutomaticPacking and Packaging Machinery Manufacturers,is in favour of moving on from a phase of exportationto a situation that sees Italian companies taking rootin those markets that are considered to be strategic

for the industry. In other words Think Global, ActLocal. This goal is also aided by the major industryagreement that was recently signed between theMinistry of Foreign Trade and Ucima, aimed atcreating the maximum synergy between public andprivate action in favour of an internationalisationprocess within the industry.Even though Israel, compared to other outlet markets,does not represent a significant market quota inpercentage terms, it is an interesting area for thepackaging industry. In 1999, for example, Israelimported 27.55% of Italian machinery, to the detrimentof traditional competitors such as the Germans with22.44% and the Americans with 13.35% (Ucimadata processed using local data).

The trend slowed down inthe year 2000. In fact, Italydropped back into secondplace (18.01%), behind theGermans (29.89%). Whatis comforting, however, isthe data recently releasedby the Central Bureau ofStatistics regarding the firstsix months of 2001. In theperiod in question Italianexports to Israel increasedon the whole by 2.5%,reaching a quota of 856million dollars, as comparedto 834,800 million dollarsin the first half of the year2000. According to TheBureau of S ta t i s t ics ,

machinery and mechanical equipment have contributedto this increase.Anyone interested in finding out more about theItalian packaging industry can visit the Association’sweb site. The site www.ucima.it includes usefulinformation about the member companies, themerchandise on offer, market trends and major eventswithin the industry.<>

Italy's Export Success Stories

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Behind the success of the Italian packaging industrylie specialisation and technological innovation

Agreement on ScientificCooperation between ITC-IRST(Trento) and the CaesareaRothschild Institute (Haifa)

The elevation structure of the telescope, pre-erected at the factoryof Ansaldo-Comazzi in Milan

UCIMA' s Director General Guido Corbella

4

verviewAlthough it began expanding later than

in other European countries, the Italian ICTsector is now growing rapidly, placing Italy atthe forefront of developments in Europe intelecommunications (especially mobile telephones)and swiftly gaining ground in informationtechnology. This progress has moved Italy intowhat the OECD calls the "Medium ICT Intensity"group of countries, together with, among others,France, Japan and the Netherlands, and aheadof Germany.

A fast growing marketThe Italian ICT market is estimated to havegrown by 12.8% in 2000, the fastest pace inEurope after Greece and Spain. In 2001, thiswill place the Italian market in fourth place bysize (at a forecast of Euro 7.5 billion), trailingthe United Kingdom, Germany and France.

A highly-trained labour forceItaly offers a vast pool of young, well-educatedworkers. In 2001-2002 alone, universities areexpected to turn out some 50,000 new professionalsin technology sectors.

High productivityWith the added value of more than $80,000 peremployee, Italy has Europe’s highest productivityin the sector after Germany.

Low labour costsRelatively low labour costs, high flexibility andlow turnover rates are major advantages forfirms investing in Italy.

High innovation rateInvestment by ICT firms is increasing steadily,as is R&D spending, which according to theOECD accounted for 27% of all R&D spendingby Italian firms.

ICT Firms in ItalyIn 1999 there were 61,774 ICT firms in Italy,an increase of 6.4% on 1998. Most of these(72.6%) operate in the software and servicessegment of the industry, accounting for thelargest share of employment (48.1%). This wasfollowed by firms in hardware and technicalassistance (12.6% of firms and 11.9% of workers),indirect operators (12% of firms, 7.1% of workers)and finally telecommunications services andequipment (just 2.7% of firms but fully 32.9%of sector employment).There have been interesting developments inthe breakdown of firm numbers by segment.While hardware producers increased in the early1990s before turning downwards in the middleof the decade, telecommunications services andequipment firms recorded a strong accelerationbetween 1996 and 1997, following theliberalisation of the industry. Software andservices firms accelerated in the first half of the1990s before easing to a more linear growthtrend.

Italy's strong pointsThe availability of appropriately trainedprofessionals is a key factor in competitivenessin the ICT sector. Faster sector growth dependson ensuring an expanding pool of increasinglyqualified staff, needed to keep pace with demand.

Shortages of specialised skills are an obstacleto development because they raise labour costsand make it more difficult for firms to find thenecessary human resources. Compared to otherEuropean countries, Italy enjoys a clear competitiveadvantage in this area thanks to its large pool- especially in the South - of young, well-educated, flexible workers with a low turnoverrate.

Qualified Labour ForceItaly has one of Europe’s highest shares ofstudents in the 24-30 age group who have earneda first-level university diploma. The number offull university degrees awarded has also increasedsteadily, rising by 40% from 92,539 in 1993 to129,167 in 1998. In particular, there has beena jump in the number of university degreesawarded in the disciplines of greatest interestto ICT firms, i.e. engineering and economicsand statistical fields. The share of graduates inengineering rose from 8.3% in 1993 to 11.8%in 1998. The share of university students enrollingin the 147 full degree courses and 78 diplomacourses in technological or scientific fields isalso rising, from 15.3% in 1998-1999 to 19%in 2000-2001.The university system of diploma courses isparalleled by post-secondary school trainingcourses as an alternative to degree programmes.One recent addition is the system of advancedtechnical education and training courses (IFTS),which are intended to train intermediate-levelstaff such as technicians, professional managersand qualified operators who can be quicklyintegrated into firms in a system that meetsEuropean standards. There are already 56 activecourses to train experts in telematic andinformation technology applications, and thenumber of programmes is set to increase.An IDC study estimates that some 56,000technology professionals will be trained in2001-2002, nearly twice current levels. Ofthese, 50,000 will complete universityprogrammes and the remainder will come fromIFTS courses. Corporate investment in ITtraining is also rising sharply. In 1999, spendingincreased by 10.2% to more than Euro 557million. Forecasts indicate that this growthwill strengthen further in the coming years,with spending on training expected to rise tonearly Euro 775 million in 2002.

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I T A L Y A S F O R E I G N I N V E S T M E N T S I T E :

THE ICT SECTOR IN ITALIA: Key FiguresShare of GDP 2000: 5.5%Per capita ICT expenditure 2000: Euro 1,065The fourth market in Europe 2001 (forecast) Euro 67.5 billion

(with growth of 12%)Trade in ICT hardware 1999: Total imports:Euro 9.773 billion

Total exports: Euro 4.903 billion Trade deficit: Euro 4.870 billion

61,774 firmsTotal number of sector workers 1999: 441,522 (2.1% of total workers)Second-highest productivityper worker in Europe 1997: $ 80,200 value added/employmentLargest number of mobilesubscribers in Europe 2000: 42.500 million

5

Low Labour CostsRelatively low labour costs are another importantattraction Italy holds for foreign investors.According to the OECD, in Italy wage andsalary levels per employee in the ICT sectorare significantly lower than in all other Europeancountries, except France. A recent survey alsoshows that, considering the minimum salary,network engineers and senior programmers costless in Italy than in every other industrialisedcountry.

Flex ib i l i ty and Low TurnoverAn analysis of employment developments overthe period between 1991 and 1999 shows thatthe use of innovative contracts has increased,boosting the flexibility of the labour market.Although the market is becoming more andmore dynamic, the propensity of Italian workersto change jobs remains low. From 1993 to 1999the share of highly-qualified employees workingin the same firm for more than 5 years remainedat about 62%, while the figure rose to 70% fortechnicians. This behaviour has a beneficialimpact on staff costs, as firms find it easier toreta in the people they have t ra ined.

THE SECTORS:

Hardware Systems and Related ServicesThe hardware segment continued to grow stronglyin 2000, at a rate higher that of 1999 and higherthan the European average. The hardwaresegment was worth 6.05 billion euro, up 11.1%from 1999. Technical assistance on the otherhand, continued to report negative growth,reflecting the downturn in traditional services.Innovative services achieved very positivegrowth.

Software and IT ServicesIn 2000, Italy's software and IT services marketwas worth 11.9 billion euro, and continued toaccount for a growing proportion of the totalIT market (62.5% in 2000). The sector's growth(up 15%) was two percentage points higherthan that of 1999 and the second highest amongindustrialised countries. The strongest growthwas in services, which grew by 15.6%. Softwareperformance was also strong (up 13.7%). In2000 e-business solutions moved from 4% oftotal ICT expenditure up to 7.2%. Italian firms’expenditure was focused on creating sites and

portals (54.4%) and implementing CRM solutions(38.9%). In 2001 firms are expected to increaseexpenditure on CRM solutions (44.1%),marketplaces and e-procurement (16.2%) market.At 13.7%, growth was stronger than in 1999.

The IT Services MarketThe IT services market was one of the fastestgrowing sectors of the entire Italian ICT market.Worth more than 8.4 billion euro, and withgrowth of 15.6% compared with 1999, thismarket accounted for more than 70% of thesoftware and services market and 44% of thetotal IT market

TelecommunicationsIn 2000 the Italian telecommunications market(TLC) grew faster than its European counterpartsand the world average. Sales in the TLC sectorrose by 12.9% to 36.9 billion. TLC servicesmade a major contribution to the growth, withan increase of more than Euro 2.7 billion. TheTLC equipment market expanded by 17% in2000, with total sales of 10.43 billion. Thenetwork infrastructure segment performedparticularly well, with revenues rising by 16.9%from Euro 5,010 billion in 1999 to Euro 5,857billion in 2000.

Mobile Telecommunications in ItalyItaly is the largest European market for mobilecommunications, with 42.150 million subscribersand sales of 11.5 billion in 2000. The figures

for 2000 confirm Italy’s position as one of thefastest growing markets in Europe. The numberof mobile subscribers overtook the number offixed lines, while the penetration rate (numberof lines per inhabitant) soared to 72%, from53% in 1999.

Internet Users in ItalyAfter a period of rapid expansion, the pace ofincrease in the number of Internet users in Italy continued to grow in 2000. Italy is now thethird leading country in Europe with 14.11mi l l ion use rs (24% of popula t ion) .

The Electronic Components IndustryApproximately one thousand lectronic componentfirms operate in Italy, providing work for about30,000 people. The province with the largestnumber of electronics workers is Milan, followedby Turin and Frosinone. There is also a majormanufacturing presence in Bologna, Cataniaand L'Aquila. In 1999, the electronic componentsindustry in Italy generated sales of Euro 2,159million, an increase of 2% with respect to 1998.In the same year, exports grew by a healthy11.4%, while imports rose by only 1.4%. Withexports accounting for 52.7% of total sales, theItalian electronic components industry is veryopen to external markets. Initial estimates suggestthat, measured both by sales and exports, thegood performance of 1999 continued in 2000,and the number of workers in the industrycontinued to increase.<>

THE COMPARATIVE ADVANTAGE OF THE ICT SECTOR

6

ITALIAN NATIONAL INSTITUTE OF HEALTH

mong other functions, the Institutecollaborates with the Minister of Health

in preparing and implementing scientific andhealth planning. It promotes programmes ofnational interest in accordance with the objectivesof the National Health Plan. It provides technicalguidance and co-ordination in the field of healthprotection and promotion, in collaboration withlocal hospital authorities and health boards, aswell as with public and private sector organizationsof national importance.It also provides advice to thenational government and theRegions on their respective healthplans, as well as promotingprogrammes of research on therelationship between environmentand health.It promotes programmes andclinical trials of national interest,undertaken at scientific hospitaland care facilities and local healthboard hospitals.It provides advice on protectionof public health in collaborationwith the Italian National Instituteof Health and Safety at Work andwith other bodies concerned withthe production and use ofthermoelectric and nuclear energy,radioactive substances and everyform of energy used for diagnosticand therapeutic purposes.Through its own operations centresand by contributing financially,it takes part in foreign andinternational projects aimed at protection of publichealth, as well as in study and research programmesof national organizations.It certifies and accredits test laboratories and certificationbodies provided for by EU regulations and internationaltreaties in the public health field.It signs agreements on collaboration withadministrations, government agencies, associationsand other public or private sector Italian, foreign orinternational legal persons, from which it may receivecontributions to carry out specific research relatedto its institutional tasks.

Governing bodies, Laboratories and ServicesThe ISS is headed by its President, Prof. EnricoGaraci and by the Director General Dr. RomanoRosario Di Giacomo. Its principal governing bodiesare the Executive Board and the Scientific CommitteeThe "Istituto Superiore di Sanità" currently comprises20 Laboratories, 8 Technical Services, a Library,Administrative and Personnel Services. The NationalCentre for Transplants, Statistics Office and EqualOpportunities Committee has also been created atthe Institute.

Research at the InstituteThe "Istituto Superiore di Sanità" also promotesresearch programmes on the relationship betweenenvironment and health, and clinical researchprogrammes of national interest, to be carried outat scientific (IRCCS) and local hospitals.It takes part in foreign and international projectsaimed at the protection of public health, as well asin study and research programmes of national

organisations.Part of the Institute's research activities are plannedand carried out on the basis of a 3-years plan; theseare the so-called "Institute research projects". In the1997-1999 Plan (extended to 2000), these are groupedinto 14 large "thematic areas".The 3-years plan is a document that must specifyscientific activities, priorities, and human and financialresources. Like State planning acts, the Plan mustbe intended as a rolling plan in relation to the annualplan which, in addition to indicating the resources

for the activities that can be planned, must specifythe allocation of resources for activities that cannotbe planned in advance (controls, advises, actions,etc.).The Institute's proposals for research are submittedfor the opinion of the Scientific Committee, whichmust assess the scientific validity of the proposals,their congruity with the financial resources requestedand the human resources available to carry out whathas been proposed. The Institute's research budgetis set out in terms of programmes and objectives.The Scientific Committee is required to assess theresults achieved each year before the financialresources for the following year are approved bythe Administrative Committee. The Institute promotesmulti-year research projects for development ofresearch and action in the territory, financed by theNational Health Fund, the so-called "1% Projects".It also co-ordinates and finances research on AIDSto be undertaken both on the Institute’s premisesand at other national research facil i t ies.

Activities in the field of Public HealthIn addition, the Institute undertakes surveillance,investigation and action to protect public health onthe basis of laws and ministerial decrees, as it hasdone since its foundation.The Institute also maintains National EpidemiologicalRegisters for the observation of specific diseases.These are information systems that make it possibleto monitor the trend and dimensions of some diseasesin Italy and to plan effective health action for them.They are coordinated by the "Istituto Superiore diSanità". A manager from the Institute's scientific

personnel i s in charge of each regis ter.Regional and inter-Regional centres, and sometimesperipheral clinical centres, take part in the Registers.Some registers also operate in the framework ofspecific European projects.The institutional activities of monitoring andsurveillance are often associated with researchactivities, since the quality of the Registers can itselfpromote collaborative studies aimed at improvingknowledge of the diseases concerned.

TrainingThe Institute organises training,advanced training and updatingcourses on public health and healthcare organisation for personnel ofthe National Health Service andof other health protection andpromotion bodies. Around sixtyshort courses (two to five days) areorganised every year on the mainpublic health topics such as: foodhygiene, environmental health,epidemiology and bio-statistics,health economics, management,communication, health education,applied research, continuingeducation, control of infectious andnon infectious diseases to quote afew.Two long-term projects are worthmentioning under the trainingfunction. The first is the WHOCollaborating Centre on continuingeducation for health professionsthat, since 1988, offers an annual

international Master Course on Health Managementusing Problem-based Learning (PBL) as its distinctiveinstructional method. Another important project isrelated to the development of a National School ofPublic Health, presently spanning a three-years termof operations.

Scientific InformationThe activities of the "Istituto Superiore di Sanità"in the scientific information field are very extensive.They are carried out chiefly through the production,management and dissemination of information,comprising publication of results of research performedat the Institute (including the preparation of specificguidelines), and the production of databases.Information is also disseminated through the numerouscongresses and seminars that the Institute organizesannually in the sectors within its own competence,involving the Italian and international scientificworld.In each section of the field ample attention is alsogiven to scientific information in the broad sense,by clear and exhaustive presentation of the activitiesof the Institute and the principal channels ofdissemination.

International RelationsThe "Istituto Superiore di Sanità" has developedand consolidated an important presence in this sectorthat will be further developed in the future.There are also some WHO (World Health Organization)Collaborating Centres and other international bodiesworking at the Institute.<>

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The "Istituto Superiore di Sanità", (the Italian National Institute of Health, ISS) is a technical andscientific branch of the Italian National Health Service. It undertakes experimental research, controland training functions related to public health in Italy.

FOCUS ON SCIENTIFIC RESEARCH IN ITALY

The Italian National Institute of Health in Rome

From Art Nouveauto ExpressionismOctober 7 - February 3, 2002Rome, ItalyThis is the first time that anexhibition dedicated to thethree great Austrian artists,Gustav Klimt (1862-1918),Egon Schiele (1890-1918)and Oskar Kokoschka (1886-1980), has been held inRome. These artists unitedtogether in an effort toexpress the Austria of theirtime. The exhibition includes100 masterpieces on loanf rom var ious museums and pr iva te co l lec tors .

Contact and Information: +39-066780664

EurochocolateOctober 20 - 28, 2001Perugia, ItalyFor nine days, the city of Perugia turns into a sweet, colorfuland tantalizing chocolate workshop. Chocolate is everywhere.Everybody smells it, wants it, eats it.

website: www.chocolate.perugia.it/email: passworld@libero.itContact and Information: +39-0755732625

Venice MarathonOctober 21, 2001Venice, ItalyThe Venice Marathon is a unique race in one of the most picturesquecities in the world.

website: www.venicemarathon.it/http://www.venicemarathon.it/Contact and Information: +39-0415209287

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he U.S. State Department hasacceded to Italy’s request for

res t r i c t ions on the impor t o farchaeological material.The US has agreed to impose importrestrictions on Italian archeologicalmaterial from the pre-classical, classical,and imperial periods in an attempt tostem the flow of illicitly excavatedworks that regularly enter the US.By all accounts, the US is one of thelargest markets for stolen Italian artefacts,many of which are first smuggled toSwitzerland, laundered with a falseprovenance and from there exported tot h e U S . A " M e m o r a n d u m o fUnderstanding" was signed at a StateDepartment ceremony on January 19,with Ambassador Ferdinando Salleorepresenting Italy and Helena K. Finn,Acting Assistant Secretary of State forEducational and Cultural Affairs, signingfor the US."Italy is one of the world’s archaeologicaltreasures and it behoves us all to safeguardit," Dr Finn said in a statement. Theareas particularly at risk were identifiedas Sicily, southern Italy, and Etruscansites in central Italy. The agreementwas reached in response to a 1999request for import restrictions onarchaeological material from Italy, madeunder Article 9 of the Unesco Convention.The terms of the original request werebroad and included material from thefifth millennium BC to the fifth centuryAD. The request was reviewed by theCultural Property Advisory Committeewhose members are appointed by thePresident and whose investigations andconclusions are private. The committeeincludes two members who representthe interests of museums, three expertson archaeology, anthropology, ethnologyor related fields, three experts in theinternational sale of cultural property,and three members representing theinterests of the general public. Accordingto a spokesperson for the StateDepartment, "the terms of the requestwere reduced on recommendation ofthe committee.The final agreement states that the USshall "restrict the importation ofarchaeological material ranging in datefrom approximately the ninth centuryBC to approximately the fourth centuryAD, including categories of stone, metal,ceramic and glass artifacts, and wallpaintings... unless Italy issues a licenseor other documentation which certifiesthat such exportation was not in violationof its laws." US Customs regulationswill now be amended to require thatthe listed artefacts not be imported into

the US unless accompanied by a validexport permit from Italy. If an importercannot produce the required evidenceproving that the objects have beenexported legally, the works are to betaken into custody and, i f thedocumentation is not produced withinthe required time period, seized andforfeited to the US. They will then beoffered for return to Italy.Speaking to The Art newspaper, SpecialAgent Tom Caso of US Customs said,"The bilateral agreement is a very usefultool for us because it places the burdenof proof on the importer and it givesus broader authority to seize works.Until now if we received a request forthe return of a work from Italy on thegrounds that it had been stolen, theburden of proof was on us asinvestigators. We had to go before afederal judge to argue our case."Thedifficulty in enforcing a foreign nation’scultural property law in the US wasevidenced in the case of the gold phialereturned to Italy by US Customs,following its seizure from collectorMichael Steinhardt. The gold platterhad been illegally excavated from aState-protected archaeological site nearPalermo, Sicily and taken to Switzerland.It was then purchased in good faith byMr Steinhardt for $1.2 million.Italy sought US aid in recovering theobject which the Italian governmentowns under a 1939 Italian law. AfterUS Customs seized the platter, an everwidening lawsuit commenced whichinvolved not only Italy and the US butalso museum and archaeology groups,raising legal principles and policyarguments for and against the object’sreturn. False statements had been madeon customs forms when the object wasimported and a federal appeals courtheld in 1999 that these were "material"enough to subject the object to forfeiture.The agreement also stipulates that "Italys h a l l u s e i t s b e s t e f f o r t s t oincrease...protective measures forarchaeological excavations at knownsites, particularly in areas at greatestrisk from looters." At the moment, mostsites in Italy are completely unguardedand tomb-robbers go about their businessunhindered.The agreement is valid for five years,after which time it is subject to review.It is the ninth of its kind drafted sincethe US implemented a Convention onCultural Property Act in 1983. Importrestrictions have already been grantedto El Salvador, Guatemala, Peru, Bolivia,Mali, Canada, Cyprus, and Cambodia.<>

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ITALY AND U.S. JOIN FORCES INFIGHT AGAINST ANTIQUITIES

SMUGGLINGBilateral Treaty sets new modelof International Cooperation

baroque artist who painted splendid frescos, whichincluded the dome of Sant’Andrea della Valle churchin Rome, and numerous religious paintings whichdecorate the main alters of churches.The exhibition will contain over 100 of his masterpiecesincluding some by his most famous contemporaries(Annibale Carracci, Domenichino, Saraceni, Vouetand others). The paintings are on loan from the world’sleading museums and Italian churches.

Contact and Information: +39-0521313333Website: www.giovannilanfranco.it

BalthusUntil January 6, 2002Palazzo Grassi, VeniceWith over 250 works on show, the exhibition to beheld at Palazzo Grassi is the largest ever dedicatedto Balthus. Curated by Jean Clair, this is the firstretrospective on this enigmatic painter who diedrecently, one of the great masters of the 20th centuryand one ofthe very fewa r t i s t s t ohave worksdisplayed atthe LouvreM u s e u mwhile stillalive.Visitors willbe able tov i e w t h ec o m p l e t ew o r k s o fBalthus andt r a c e h i sartistic andp i c t o r i a ldevelopmentalong the 36rooms of the 18th century Venetian palazzo, throughworks that the artist himself helped to select. Thepaintings on show are on loan from 90 museumsaround the world, private collections and culturalinstitutions, including the Metropolitan Museum andthe Museum of Modern Art in New York, the CentreGeorge-Pompidou and Picasso Museum in Paris, theTate Gallery in London.

Contact and Information: +39-0415231680website: www.palazzograssi.it/

Blood and ArenaUntil January 7, 2002Colosseum of RomeThe colosseum is the single most visited touristattraction in Italy. This exhibition was created so thatthe visitor can experience, first hand, the history and adventures of those who fought in its awesome arena:the Gladiators.

Contact and Information: +39-066723763e-mail: Trenini@beniculturali.it

Torino Film FestivalNovember 15 - 23, 2001TorinoThe promotion of a newin t e rna t i ona l c i nemac o m p e t i t i o n e n t i t l e d'International Feature FilmCompet i t ion ' and the'International Short FilmCompetition' will be launchedalongside an intensiveprogramme of tributes andretrospectives, connectingthe future of cinema to thememory of the past.Performers: George A. Romero, Egyptian Cinema,Jean-Marie Straub & Daniele Huillet

website: www.torinofilmfest.orgemail: info@torinofilmfest.orgContact and Information: +39-0115623309

Children's Festival20 November - 23 December 2001Milan, Strehler Theatre"Festival dei bambini"

Artists from all over the world will take part in thethird "Children’s Festival" to be held in Milan. Theywill present programmes of mime, clowns, acrobatsand marionettes to young audiences, aged from 4 to14. Various options will be offered during the weekdays,which will include activities in the theatre and outside,and at the weekends there will be programmes aimedat the whole family.During this month the "Piccolo Teatro" will becomea "magic box" with thousands of surprises.

Contact and Information:+39-0272333222, 027233323www.piccoloteatro.org

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E V E N T S I N I TALY2 0 0 1 - 2 0 0 2Firenze MarathonNovember 25, 2001FlorenceThis event is open to athletes 18 years of age and overby 25 November 2001 who are currently members ofa legally recognized sporting association. The eventstarts from the city's center at Lungarno della ZeccaVecchia and finished at the Piazza S. Croce, 100 metersfrom the start. The Half Marathon and the FitnessWalk end up at the Piazza S. Croce.

website: www.firenzemarathon.it/http://www.firenzemarathon.it/Contact and Information: +39-055572885

Viareggio Film FestivalNovember 27, 2001 - December02, 2001ViareggioThis is the 18thy e a r o f t h i sinternational filmce lebra t ion .

w e b s i t e :www.europacinema.net/e m a i l : s e g re t e r i a @ e u ro p a c i n e m a . n e tContact and Information: +39-0642000211

The Masters of theRenaissance at SanSeverinoUntil November 5, 2001San Severino (Macerata)This year the little town of San Severino, in the provinceof Macerata, will appear on the map of the world wideexhibition circuit. For the first time the works ofLorenzo D’Alessandro will be on show, incommemoration of his death 500 years ago. The exhibitwill be in the newly restored Palazzo Servanzi Confidati.

Contact and Information: +39-0733641296I.r.comunicazione@libero.it

Giovanni Lanfranco.A Baroque painter fromParma, Rome and NaplesUnt i l December 2 , 2001Palazzo Ducale, ParmaThis is the first large monographic exhibition dedicatedto the artist Giovanni Lanfranco. He was a great