Over the next few years exports will be the growth driver for all developed Countries, particularly for all Countries which will be subjected to a stagnation of internal demand. The rapid development of emerging economies will cause a growth in the imports not only of capital goods but also of consumer goods of these Countries. An economy like that of Veneto, traditionally directed at exports, must therefore understand how to seize the opportunities which are arising on the global markets.
The internationalisation of the businesses is a primary competitiveness and development factor. It should be intended as an ability to improve the quality of the presence of businesses in international markets without allowing them purely to be tempted by the productive delocalisation linked to the reduction of the workforce cost. The challenge for the Veneto businesses is identifying the new strategies for increasing the degree of geographical diversification of the exports, consequently reducing their dependence on few reference markets and placing their goods more profitably.
The information regarding the sales flows can provide useful indications for evaluating the definition of new strategies for the presence of our businesses in various foreign markets and the development of the quality of exported goods. The analysis contained in this paragraph refers to the sales flows of the first ten years of the new Millennium, 2010 is the last year with available conclusive data on the commercial interchange with abroad; some statistical indicators have been used in order to measure the degree of internationalisation of a specified area, as the compound annual growth rate calculated on an annual basis (CAGR) (Note 1) and growth contribution (CCC) (Note 2). (Figure 11.1.1), (Figure 11.1.2)
Over the last ten years barely less than seventy percent of the Veneto exports came from five sectors: mechanics (18.9% of the total in 2010), fashion (18% in 2010), metal and metal products (11.2% in 2010), chemistry and plastic (11% in 2010) and jewellery and eyewear (8.9% in 2010). The relative influence of various sectors has nevertheless experienced some important changes. The mechanics sector has taken the lead in export product value with a share that has increased by 2.5 percent over the last ten years. This sector is the one that also greatly contributed to the growth of exports during the ten years under consideration: 26.6% of the new foreign turnover generated by the Veneto businesses is ascribable to the sale of mechanical products.
However, just behind it some important changes took place: in 2010 the fashion sector (textiles, clothing, leather and shoes) took second place in export value. Over the course of the last two five-year periods this sector lost the leadership of the more export-oriented regional sector. The sector businesses have had to face a big competitiveness crisis. The competition of new emerging economies linked to the low workforce cost has caused the restructuring of many sector companies, with the increasing trend of productive decentralization abroad. This results in a substantial resizing of the regional export load of the section: the amount of exported goods decreased from 22% in 2000 to 18% in 2010 and the value of exports remained equal to that of 2000. Also on the national scale, the foreign turnover amount of the fashion sector decreased by four percentage points: from 15.1% in 2000 to 11.1% in 2010.
In third place, with 11.2% in 2010, the metallurgical processing sector rose (from fifth place in 2000) with a gain of almost four percentage points, in line with what occurred on the national level.
The Veneto exports of the section recorded a compound annual growth rate, which for the sake of easiness we will call the average annual percentage variation, of 6% and contributed by more than 26% to the new regional foreign turnover over the last ten years.
On the other hand, the amount of Veneto exports of chemical products was rather stable, moving from 11.3% in 2000 to 11% in 2010, whilst the national amount increased by almost three percentage points, strengthening the national leadership of the sector by foreign turnover value.
The aggregate of the "other manufacturing industries" which included the goldsmiths, sports articles and eyewear sectors, was worth almost 9% of the Veneto exports in 2010 (Note 3) and dropped to the current fifth place (fourth in 2000), losing a good two percent.
With regard to the remaining sectors, between 2000 and 2010 the food productions increased their importance (from 5.6% in 2000 to 8.8% in 2010) and the section of the electrical equipment (from 7.3% to 8%). The export performance of the food sector was particularly significant as it recorded the highest average annual percentage variation (+6.8% in the period under examination, which moves to 8.8% between 2005 and 2010), thanks to the extraordinary performance of the foreign wine sales. (Figure 11.1.3)
Another good indicator for measuring the efficiency of an economic system is the standardised balance (Note 4) which measures the degree of sales specialisation of a specific economic sector or area. The analysis of its dynamics allows the evaluation of the ability of an economy to compete on the international markets. If we consider the dynamics of the standardized balance of the main sectors of Veneto's export during the last decade, there is evidence of some important changes to the sales specialisation which cause Veneto businesses to concentrate in the production of certain goods.
The standardized balance of the mechanical productions increased (from +54.1% in 2000 to +59.2%), whilst the balance of the other main production sectors of the regional specialisation fell as in the case of electrical equipment (from +61.5% to +37.9%), of the jewellery and eyewear (from +67% to +50.7%) and the fashion section (from +31.7% to +13.3%). The latter was mainly caused by a consistent increase in imports from Asia.
Also observing the standardized balance of other two sets of the regional sales balance, that of metal and chemistry, it can be noted that over the last decade, the standardised balance of the metallurgical productions went from -15% to +5.4% whilst for the chemical products it passed from a positive standardised balance value (+8%) to a negative one (-1.1%). This confirms the substantial increase of the Veneto specialisation regarding the production of the metalworking section and the slight loss in competitiveness of other industrial productions.
The Veneto food system continued the slow improvement of the standardized balance deficit (from -27.1% in 2000 to -10% in 2010), taking advantage of the effect of the extreme growth in foreign wine sales.
Finally, the deficit of the standardized balance of the means of transport section was in constant increase: from -32.1% in 2000 to -44.8% in 2010. (Figure 11.1.4), (Figure 11.1.5)
Observing the export dynamics of the Veneto manufacturing sector and combining the product sectors on the basis of the type of product and technological intensity (Note 5), an increase in the amount of exports of intermediate and investment goods and a decrease in the amount of exports of consumer goods, particularly of those that are durable, was recorded. The directions therefore seem to be in line with the dynamics of the world sales and with the growth expectations of various sectors. The expectations on the world scale indicate an increase in the rate on total intermediate goods exports of around three percent over the next five years, and capital goods (+1%).
Over the last years the growth in regional export has been supported by the industrial conversion processes, based on continuous product innovation, which selected the companies able to compete in the markets becoming constantly more globalised. These processes have mainly favoured the position of the specialised businesses in the production of intermediate and capital goods which have shown to be able to stay ahead of foreign competitors.
The weight of intermediate goods (Note 6) out of the total regional exports increased in both its high tech section (rubber and plastic articles and electrical equipment) from 7.8% in 2000 to 9.1% in 2010, and in its traditional section (from 17.7% to 19.6%) where a marked growth in foreign sales of metallurgical productions is recorded.
The export rate of traditional capital goods also increased (Note 7) from 7.4% in 2000 to 8.1% in 2010, whilst that of the high tech capital goods (precision mechanics), even if it was the second regional export item, accounted for 22% and remained stable: this is a positive fact because the growth of the capital goods follows the dynamics of the world demand for investment goods, particularly with regard to new economies.
The nondurable consumer goods (fashion, food and drugs) proved to be one of the made in Veneto pillars. Despite a slight fluctuation in the amount of regional export, from 27.5% in 2000 to 26.9% in 2010, the nondurable consumer goods remained the first component of regional exports. However, the dynamic of foreign sales of this type of goods presents a diverse scene: with a continuously growing foreign demand for Veneto productions in the food and luxury clothing sectors and a more controlled growth of goods in the fashion system linked to standard productions.
The durable consumer goods typology recorded the worst performances both in the traditional specialisations and in those that are high tech: the foreign sales of traditional durable goods generated by the Veneto businesses dropped from 13.6% in 2000 to 9.9% in 2010, whilst those of high tech durable goods fell from 3.2 percent in 2000 to 2.7 percent in 2010. This was the result of a marked reduction in the sales volume of durable consumer goods on the international markets (-1.2% compound annual growth rate of foreign sales of traditional consumer goods in the 2000-2010 period, which became -3.3% if the first five years of the new Millennium are taken into consideration) along with which comes a reduction in the average sales price, particularly in the furniture section, due to the competition of "new" producers. (Table 11.1.1), (Table 11.1.2)
The Veneto economy seems to be even more distinguished by its high level of entrance into the foreign markets and is consequently well inserted into an international context, characterised by a high competition generated firstly by the liberalisation of markets.
There are many reasons which drive a business towards the decision to expand itself to foreign Countries: the obtainment of cost advantages in production, the research of new end markets and the control over supplies. This seems to be crucial to facing the challenges posed by globalisation and to generating expansion strategies which can be maintained and are often designed to increase their competitive advantage, making use of the opportunities offered by the foreign markets. Therefore, a re-shaping of their internationalisation strategies and a new selection of markets becomes essential for Veneto businesses. The Veneto export should also be directed more towards new emerging markets: during the next years the number of exports to advanced Countries will continue to decrease, whilst the importance of the new economies which include the Countries in the BRIC area will increase.
The analysis of sales flows over the last ten years confirms the shift of the Veneto sales axis towards the East. If the decade 2000-2010 is examined, more than 40% of the cumulative growth of foreign sales generated by Veneto businesses was provided by the exports carried out to the new Mediterranean and Eastern markets.
In the last decade, in line with what happened on a national level, the compound annual growth rate of Veneto exports to new markets was above that of the regional average: +12.8% annually to the Countries in Central Asia (the number of exports increased from 0.5% in 2000 to 1.4% in 2010), +8.1% annually to the Countries of Eastern Europe (Russia at the top), +6.5% annual growth to the Middle East, +4% annually to the Eastern Asia markets (second target area for Veneto exporting businesses), +4.4% annually to the other European Countries (Turkey and Switzerland) and 5.1% annually towards North Africa.
However, there is a drop in export growth to the American continent. The compound annual growth rate of Veneto exports towards North America remains negative both in the first ten years of the new millennium (-3% annually) and in the last five-year period (-3.4% annually), this resulted in a reduction of the amount of foreign sales to those markets by almost five percent (from 12.4% in 2000 to 7.5% in 2010).
The case of exports to Latin America is slightly different: registering a negative compound annual rate (-2.5%) between 2000 and 2010. In the last five-year period the annual dynamics became positive (+8.4%) and enabled the market rates lost in the first five years of the 2000 to be made up in part. The presence of Veneto businesses in these markets is still low and a greater undertaking on the part of the Veneto entrepreneurs in order to take advantage of the opportunities offered by the Countries with the best growth prospects seems necessary: let's consider Brazil, the twenty-sixth target market for Veneto exports which will organise the Football World Cup in 2014 and the Olympics in 2016. (Figure 11.1.6)
In 2010, the European Union proved itself as the first international seller and buyer of Veneto goods, maintaining a positive standardized balance (+5.9%) but a decline in relation to the balance registered in 2000 (+11.8%). North America remained the geographical area to which Veneto showed the highest value of standardized balance (+62.9%) which grew slightly with respect to the data at the start of the century despite the market drop in exports recorded over the last decade. However, the region with which the standardized balance assumed the lower value was Central Asia (-34.2%).
In comparison with Eastern Asia (6% of the Veneto exports and almost 12% of the regional import) a lowering of the standardized balance has been verified (-22.4% in 2010). In particular, the negative balance registered with China was amplified as a result of the effect of the de-specialisation process of some traditional work, such as those of textiles, clothing, footwear and furniture.
The standardized balance remained positive and increasing in comparison to the other European and Middle Eastern Countries. The increase of the standardized balance with the non-EU European States was particularly marked (from +10.4% to +41.4%) due to a heavy increase in exports to Switzerland and Turkey.

In a period, like the current one, of stagnation or even reduction of the internal demand, particularly in the section of household consumption which concerns the entire Italian area, the role of the foreign demand seems more crucial than ever to drive the economy along a stronger growth path. Particularly for Veneto, which until the 1980s showed an inclination towards exporting which was increasingly exceeding the national average, the international markets historically represented an important tool for encouraging development. However as was noted, the international setting started to change deeply in the second half of the '90s. Moreover, the reinforcement of the role performed by the economies which had industrialised more recently, if competition intensified, also paved the way for new opportunities. In this scenario, marked by continuous and often hasty changes, the great recession of 2008-2009 broke out and the recovery three years later was difficult to fund. In the 2010-2011 period Germany was the EU Country that seemed to be reacting quickest to the crisis and therefore represented a valid point of comparison with Italy and Veneto, taking into account that these areas share the conservation of a large industrial base.
Refusing the comparison on a regional basis and from the internationalisation point of view, the structure and trend of Veneto export was examined alongside some of the most industrialised German regions (Baden-Württemberg, Bavaria, Hesse, North Rhine-Westphalia). (Figure 11.2.1), (Figure 11.2.2)
With regards to performance in the period following the mini recession stretching from the start of the millennium up until 2007, the German regions showed an export growth which was on average above that of Veneto and a particular dynamicity is found in Hesse and Bavaria, areas where exports increased in line with the global demand trend.
In 2007-2009, however, the impact of the great recession was substantially generalised: a downturn of between 12 and 10% per year on average affected all the regions, with the exception of Hesse (-6%). (Figure 11.2.3)
In the following two-year period the three-monthly exports trend showed a certain homogeneity of recovery amongst the regions under examination. Baden-Württemberg was an exception as it was characterised by a more marked recovery (+13% in the 2010-2011 period). In terms of sector, the progress of exports was more heterogeneous: for example, in the mechanics section which was important to all the regions in examination it can be noted that at the end of 2011 Bavaria was not recovering the export levels recorded at the start of 2008, whilst Hesse was in line with these and the group formed of Veneto, Baden-Württemberg and North Rhine-Westphalia was placed in a relatively better position. (Figure 11.2.4)
If the regions are compared on the basis of the export destination markets, it can be noted that the European Union predominates: the area covers more than 50% of the regional exports everywhere and the percentage reaches 60 in Veneto and 63 in North Rhine-Westphalia. The rest of Europe represents the second destination market for the exports of Veneto, Baden-Württemberg and North Rhine-Westphalia, whilst in comparison to the German regions, the Middle East and North Africa assume a relatively greater importance in Veneto. (Table 11.2.1)
Different analogies among the regions are also found when analysing the most important destination Countries in more detail. In fact in every case, the main advanced European economies (France, Spain, Great Britain, Switzerland, Austria, Belgium and the Netherlands) and the United States are indicated, in each region one or more of the Eastern European Countries are represented and in all of them China appears whose ranking position in the main destination markets, significantly increased between 2002 and 2011. (Figure 11.2.5)
The ability to seize the opportunities offered by the international markets can be noticed by analysing the average annual growth of total regional exports and of those relating to some of the Countries for which a sustained international demand is indicated (Note 9) for the next years. All the areas seem to have grasped the particular dynamicity of the demand, showing a growth in exports to such areas bigger than the total growth; the growth differentiation was greater in Bavaria, immediately followed by Veneto and Baden-Württemberg. (Figure 11.2.6)
If the sector structure of export is examined, it is noted that Veneto, in contrast with the German areas, showed a specialisation (Note 10) in the more typical Made in Italy sections (food and the fashion system), whilst all the regions, Veneto and Baden-Württemberg in particular, showed a specialisation in mechanics and rubber-plastic. Amongst the sectors that impact greatly on the global demand, the Veneto exports (also like those in Hesse and North Rhine-Westphalia) showed a specialisation in metallurgy and metal products, but not in chemistry and means of transport, specialisation sectors of export of some of the German regions under examination. Moreover, although none of the examined areas showed a specialisation index above 100 in the section which was most heavily weighted on the global demand (machinery and electrical equipment, electronics and optics), some German regions are getting particularly close to that value (Note 11) (Table 11.2.2.)
In accordance with the specialisation highlighted above, the influence of Veneto on the global demand is above that of the German regions in the section of tanning, leather, leather goods and in textiles and clothing, and larger than that of Hesse and Baden-Württemberg for the manufacture of non metalliferous minerals and than Hesse alone in mechanics and food.
As concerns two of the main exporting German regions, Bavaria and Baden-Württemberg, Veneto showed a smaller sector concentration of the export. If in the former the two main export sectors (mechanics and vehicles) accounted for around 45% of the regional total in 2011, in Veneto the incidence of mechanics was in line with that of the two German partners. However in order to cover a parallel amount of regional exports, a larger number of sectors is required. (Figure 11.2.7)
On the whole, however, Veneto and the German regions showed numerous similarities in the structure of exports and from the point of view both of the destination markets (prevalence of the advanced economies alongside a growing ability to enter markets industrialised more recently) and of the sectors (considering the relevance of mechanics and metallurgy), although in this latter aspect the most marked differences were shown. Veneto in fact maintained a high specialisation in the Made in Italy sectors, whilst some German regions seemed to be specialised in sections which impact significantly on the global demand (means of transport and chemistry). Finally, in terms of performance, the Veneto exports showed a smaller dynamic with regard to the trend recorded by the German regions in the period before the crisis, whilst in the recession period and in the following two years, the evolution of the total export was relatively homogeneous, with the exception of Baden-Württemberg which showed better results, especially in the recovery period.

In 2011 the traders in Veneto which carried out sales on international markets exceeded the threshold of 29 thousand units again, recording an annual growth of +5.8%. The recovery had affected all size classes of exporting businesses, albeit in different ways: the most sustained growth concerned the largest businesses, those with foreign turnover over 100 million euros, which exported 21.7% more than in 2010; the average value of the foreign turnover for these businesses consequently began to grow again for the second consecutive year after the setback recorded in 2009, which caused a few businesses to slide into the lower turnover category.
By analysing the data of the last years, it is evident the constant increase of the relative weight of the large traders on the total value of regional export, confirming the importance of the size of a business in the contact of the global market. Between 2004 and 2011, with the exception of 2009 the largest traders benefited from the vitality of the international demand. (Figure 11.3.1).
In the period under examination, even if a decrease in the number of Veneto traders operating abroad was recorded (fallen by around 2000 units), mainly due to the establishment of international exchange which majorly penalised the less organised and smaller sized businesses, it can be noted that the weight of the larger exporting businesses constantly increased in significance: in 2011 462 Veneto businesses recorded a foreign turnover over twenty million euros, around one hundred more than in 2004. 57.4% of this was ascribable to the regional exports (52.1% in 2004). If the selected threshold of the foreign turnover was over 100 million euros between 2004 and 2011 the number of exporting businesses which belonged to this export class increased by fourteen units (from 48 to 62). In 2011 these large exporting businesses generated more than a quarter of the regional foreign turnover, around three percent more compared to the data recorded in 2004. (Figure 11.3.2)
In terms of the export value share, the other classes under examination were losing consistency. The micro export trader contingent - below the threshold of 100 thousand euros - saw the decrease of their percentage incidence out of the general total until 61% was reached for the number of traders (68.2% in 2004) and 0.7% for the foreign regional turnover. The exporting businesses which did not exceed a million Euro export turnover was around 84% compared to that recorded in 2004. (Figure 11.3.3)
The best performance of the largest businesses largely depended on the geographical dynamics of the demand. Although recovery spread through all the markets it occurred with different intensities: the most sustained growth rates were obtained in the Eastern markets which were reached more easily not only in sales terms, by larger sized businesses.
If the period 2004-2011 is examined, the analysis of the exports data by class of foreign turnover showed that the largest contribution to the growth of Veneto exports over the last eight years in the geographical areas that lead the global sale was generated by businesses that exceed the five million foreign turnover on the markets of each single geographical area considered. More than 81% of the new exports to Far Eastern markets were achieved by a hundred large exporting businesses, equal to around 2% of the Veneto traders existing in that geographical area. Also in the Middle Eastern and Eastern European markets more than 60% of the new exports achieved between 2004 and 2011 were attributable to large businesses (still measured on the basis of the foreign turnover obtained in the area) which operate predominantly in the luxury sector (fashion, furniture, jewellery).
However the weight of large exporters towards Central Asia was still modest: in 2011 the foreign regional turnover to markets in that area (mainly India) slightly exceeded the threshold of 770 million euros and the amount ascribable to Veneto traders with a foreign turnover over 5 million euros remained below forty percent. With regard to the growth of Veneto export to Central Asia, over the last eight years only 41.2% of the new export generated was ascribable to large businesses. Large Veneto businesses must try to create a more solid sales network in order to enter this new and important market, which will record higher growth rates over the next few years.

The globalisation of the economy grew not only as a result of the intensifying of the flow of goods and capitals among Countries but also and above all of the integration of industrial and tertiary structures, grown thanks to the foreign direct investments (FDI): the large businesses seem even more to be characterised by internationally varied ownership structures in which different national origins gain weight and link each other.
Amongst the causes of this process of supranational unification the development in communication and transport technology, logistical infrastructures and financial services was fundamental as well as the large institutional changes brought on by the liberalisation and privatisation policies and by the evolution towards new policy arrangements of large sections of the global economy.
However, the most important role was played by the businesses which in addition to being the necessary vehicle of the occurred transformations knew how to effectively modify their own strategies and structures over time in order to seize the opportunities of economic growth offered by the aforesaid changes. Before the Second World War, the multinational businesses (MNC) were mainly an expression either of simple vertical integration strategies to access natural resources (large petrol companies, large food groups, etc.) or of horizontal investments, aimed at entry to main foreign markets, which were working towards the duplication in more Countries of structures designed to mirror the head office but barely understanding the advantages which the integration of the geographically dispersed assets could offer them.
Over the following decades, the businesses gradually increased their ability to move and coordinate resources on an international scale. They aimed to combine their exclusive ownership advantages with those offered by the host Countries in order to assume a real global importance and to transform themselves into organisations with the ability to internationally optimise the whole value chain both in order to efficiently allocate their resources and to acquire exclusive tangible and intangible factors for production, being aware that an appropriate "portfolio" of assets located in more Countries can lead to a significant contribution to the aggregated competitiveness of the business. Today the choices of establishment occur on a global scale, according to schemes in which delocalisation and integration of the single production phases and company functions are combined, guided by the research of international prestige and supported by new technology and coordination methods which overcome the national distances, limits and obstacles. It is even more important to underline how this process, initially restricted to the larger sized businesses, is slowly being extended to smaller businesses, so that the small and medium enterprises are even more extensively involved. (Figure 11.4.1)
The consequences and opportunities of the growing transnationality of the MNC (Note 12) are considerable either for the economy of the Country of origin or for that of the host Country. The analysis of the effects of economic, social, political and cultural nature caused by the MNC activity both in the Country of origin and in those where they are trading via their subsidiaries and affiliates resulted in extensive literature (Note 13). The economic theory and above all decades of empirical evidence highlight that in spite of the ideological and political resistance which is still not appeased, the importance that a robust and defined MNC presence - at home and abroad - covers for the improved areas. This may be both in direct terms for the contribution given to employment, innovation, training for managerial skills and the growth of the local business system and in indirect terms, for the externality of spillovers and the competitive stimuli which they generate, particularly with reference to the industrial and service activities more involved in the multinational integration processes, thanks to the formation of important virtuous circles: excellent localisation attracting the presence of the MNCs, which in their turn contribute to the increase and consolidation of the host Country's productive base, transferring technology, exclusive expertise, human capital and intermediate goods to it. These also stimulate competition, soliciting the alignment of local businesses with the international standards; they participate and help efficient industrial renovation processes; introduce their suppliers into the large international circuits via collaborations and alliances by playing the role of a bridge to foreign markets. In other words, a virtuous spiral of globalisation is activated by which a Country's opening to foreign investments facilitates the projection of the same national businesses abroad via business relations and the mobility of resources. (Note 14). Against the growing international integration of the national economies and unparalleled competitive pressures from big new protagonists (China in first place), this strategic perspective causes an increase in the international competitiveness of the businesses' local systems which implies the seizure from this of all the production factors that can increase the efficiency and innovation. It is the whole Veneto entrepreneurial system which is persuaded to face a challenge which seems to be crucial to the collective wellbeing of a region. In relation to this, the initiatives aiming to support the projection of the local businesses abroad are multiplying, also in these cases either via tools of financial nature or the offer of a defined range of real services of information, promotion, training, assistance and consultancy addressed above all to the smaller sized businesses, less instrumental in facing the complexity and risks which come with the decision to invest abroad. (Table 11.4.1)
On the side of active multinationalisation in 2010 1,043 Veneto MNCs are registered (Note 15) or not controlled by foreign groups which at this time participate in at least one foreign business.
These foreign businesses divided in the sectors considered (Note 16) include 3,316 significantly increased compared to 2,204 of 2001; abroad these employ 137,207 employees and in 2010 produced a turnover of 20,005 million euros.
The control shares related to 86.5% of the businesses owned, for which the weighting is 89.3% in terms of number of foreign employees and 92.1% according to the turnover. The recent financial crisis does not seem to have reduced the outbound flow of FDI with respect to consistency, but definitely had negative impacts on the turnover which decreased with respect to the record values of 2007 (25,571 million euros).
With respect to the overall consistency of the Italian equity investment abroad, in 2010 Veneto represented 15% of the multinational Italian businesses, 13.7% of the businesses with an interest abroad, 9.7% of the employees and 4.4% of the turnover.
It can also be observed that in terms of exports the weight of the region on the national total in 2010 amounted to 13.5%. Veneto therefore presents a number of investing parties and interest abroad above the overall economic weight of the region in the national context, whilst the incidence of the national total seems to be substantially aligned with the economic rate of the region in relation to the number of employees abroad whilst it is much lower than this if the consistency of shared activity abroad in terms of turnover is observed. In other words, the foreign participations of the Veneto businesses are characterised by average sizes and a total employee turnover lower than the national average. The reasons for this are mainly researched in small average dimensions of the investing parties, on one side, and in the large incidence of dominant initiatives sometimes delocalise the specific stages of the productive process abroad to Countries with low cost work.
As regards the inbound equity investments, at the start of 2010, the Veneto businesses active in the sectors considered by the data bank Reprint and participating in the multinational businesses (MNC) amount to 473 which employ 46,582 employees and in 2010 achieved a combined turnover of 22,741 million euros (Note 17). The control stakes completely prevail over those equal and minority, with respect to 88.5% of the owned businesses, with an incidence dropping to 86.6% if measured in terms of employees and rising to 90.8% in terms of turnover of the owned businesses.
Similarly, the balance between active and passive multinationalisation in Veneto seems to be overall in favour of outbound equity investments. The number of businesses owned by foreign companies is amongst Veneto businesses is almost six times more than that of the Veneto businesses with foreign shares; in terms of employees, the ratio is almost three to one, whilst in terms of turnover an advantage in favour of the outbound shares is recorded (the ratio is 0.9), in relation to the presence of a significant component of shares in Countries with production functions - given the prices related to capital and work - polarised on work utilisation technology.