As the name might suggest, Italian cinema is the work of
cinema within
Italy. Or more, specifically,
films directed by Italian directors.
Italian cinema is perhaps most famous for its creation of Neorealismo (Neorealism in English). The most famous Neorealist film is I Ladri di biciclette (Literally "The Thieves of Bicycles" but known in English as The Bicycle Thief). The pull of neorealism in an Italian director's blood is so great that it makes it nearly impossible for them to write films with happy endings. :-)
Another important but overlooked addition by the Italians to the world of cinema is the so-called Spaghetti Western, the most famous of which is probably The Good, the Bad, and the Ugly directed by Sergio Leone.