Yeah, but settling in Chile when Buenos Aires is right there is like setting up shop in Yonkers or Jersey City, the lights of NYC taunting you from across the river. :-)
To tell the truth northern Italy alone is one of the most developed, wealthy and productive areas in Europe. The industrial density is extremely high and diversified.
Other than that, set yourself up so you can live somewhere you like and work remotely.
Also, Italy is very different from north to south. The north is still not a great place to do business, but it's a lot better than the south.