Industry insights and figures Scientific research and development

Operating margin
18.2 %
▲ +1.2pp
2020
Companies
11154
2020

Key insights Scientific research and development

Actionable signals from current data
IT
Average operating result: 18.2% of revenue (2020).
Personnel costs: 31.6% of revenue (2020).
Number of companies: 11,154 (2020).

Sector outlook Scientific research and development

Automated analytical commentary based on the most recent Eurostat figures

Industry overview

The Scientific research and development sector across Italy comprises approximately 11,154 enterprises employing about 21,981 people and generating €4.0 bn in net turnover in 2020. The average enterprise size is – employees per firm. This is a useful yardstick when assessing whether your own operation sits within the typical scale band of the sector.

Profitability

With a robust operating margin of 18.2% of revenue in 2020, the sector reports €732 M of gross operating surplus (Eurostat's EBITDA-equivalent, before depreciation). This figure provides the headline benchmark against which an individual operator can sanity-check their own bottom line, values significantly below indicate cost or pricing pressure, those above suggest competitive advantage worth defending.

Cost structure

The Scientific research and development cost mix is reasonably balanced: cost of revenue at 64.9%, personnel at 31.6% and energy at – of turnover. Without a single dominant cost driver, margin management requires attention across the full operating envelope rather than focus on any one line.

Trend & trajectory

Over the period 2008 to 2020 the operating margin moved from 6.7% to 18.2% (+11.5 percentage points), an encouraging upward trajectory. Sectors with stable or improving margins tend to reflect successful pass-through of input costs and disciplined capacity management; declining margins typically point to either over-supply or a structural cost squeeze that warrants strategic review.

Costs by category Scientific research and development

Sector average % of revenue
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Cost structure for Scientific research and development in IT, 2008 to 2020, expressed as percentage of revenue.
Revenue / costs 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Total revenue 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Personnel costs (total) 34.9% 40.7% 34.9% 35.4% 32.8% 36.0% 35.9% 37.7% 39.2% 34.6% 32.0% 35.3% 31.6%
Gross wages 24.2% 28.2% 24.5% 25.2% 23.8% 25.9% 25.7% 27.1% 28.7% 25.1% 23.1% 25.4% 22.8%
Social and pension contributions 10.7% 12.4% 10.4% 10.1% 8.9% 10.1% 10.3% 10.5% 10.5% 9.5% 8.9% 9.8% 8.7%
Other costs 58.5% 54.1% 50.6% 52.7% 49.4% 49.3% 47.6% 47.4% 46.7% 46.9% 50.9% 47.8% 50.3%
Gross operating surplus (EBITDA) 6.7% 5.2% 14.6% 11.9% 17.8% 14.7% 16.5% 14.9% 14.1% 18.5% 17.1% 16.9% 18.2%
Depreciation 370.9% 420.0% 372.3% 356.3% 344.7% 372.7% 337.4% 325.9% 275.9% 268.7% 226.0% 242.9% 222.5%
Operating result (EBIT) -364.3% -414.8% -357.7% -344.4% -326.9% -358.0% -320.9% -311.0% -261.8% -250.2% -208.9% -226.0% -204.4%

Source: Eurostat Structural Business Statistics (latest available year).

Operating result over 13 years

Sector average % of revenue
Average
14.4%
Peak
18.5%
2017
Low
5.19%
2009
Latest
18.15%
2020

Cost mix evolution

How costs have shifted as a share of revenue

Cost distribution as % of revenue Scientific research and development (2020)

Recommended next steps

Based on the latest available data for Scientific research and development