ABSTRACT
So far Italy has not attracted a large flow of Japanese direct investment. However, recently a small but growing number of companies have chosen Italy as the location for their manufacturing operations. These investments present distinctive characteristics. In particular, there is a clear preference for joint ventures with Italian interests, while in other European countries wholly owned subsidiaries are preferred. Through the analysis of relevant cases, the paper points out how these investments are the result of a positive, assertive strategy reflecting sector and firm specific conditions, rather than a second-best solution adopted in order to overcome obstacles preventing the establishment of wholly owned subsidiaries.
