Cultural Startups and the Challenge of Phygital Approaches: Cases From Italy

Cultural Startups and the Challenge of Phygital Approaches: Cases From Italy

Fabio Greco
Copyright: © 2022 |Pages: 15
DOI: 10.4018/978-1-7998-9656-2.ch015
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Abstract

The digital transformation is also taking place in the cultural heritage sector. For it to be effective, there is a need for a structured innovation plan. At the same time, the cultural start-up phenomenon is also becoming increasingly popular among management scholars. The author will focus on the concept phygital, understood as the exploitation of technology to build a bridge between the physical and digital world, reconnecting it to the concept of cultural start-up with the aim of contributing to a reference literature that is not yet much robust. The analysis of the case studies of the selected cultural startups brings out that museums, event organizations, cultural tourism, and archaeological sites management companies are devising increasingly captivating formulas such as those “phygital.” Some theoretical implication include focus on the customer hyper-connected, assessment on increasingly close (sometimes symbiotic) relationship with technology, and, thanks to it, to live in two worlds at the same time, the physical one and the other digital.
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Introduction

In recent years, the governments of many states of Europe, have recognized the importance of the economy of cultural heritage, much so that in the face of the pandemic crisis a lot has been done to oppose a significant decline globally (International Council of Museum, 2021). In particularly, during 2020 the turnover of European creative and cultural activities decreased by 31% compared to the previous year. Faced with this situation, the European Union has decided to increase investments in the cultural sector (European Commission, 2021). In Italy, the National Recovery and Resilience Plan reserves 6.675 billion euros for culture to increase the level of digital attractiveness and improve the sustainability standards of the sector.

In this context, when we talk about innovative start-ups, we think that their core business is in any case digital such as information technology, fintech, biotechnologies and so on. However, the reality of truth has proven different, so much so that the phenomenon of cultural start-ups are growing. In Italy, for example, 14,000 start-ups are registered in the special section of italian firms register (registrodelleimprese.it, 2021), with an average turnover of 167,000 euro and employing almost 60,000 workers. Lombardia, Lazio and Campania are the three regions with the largest number of start-up companies (Sole 24 Ore, 2021). Analysis of the annual report on start-ups and innovative SMEs (MISE, 2021), reveals that 37.7% of these companies, almost four out of ten, are cultural and creative start-ups seeking to bring innovation to a fundamental sector for Italy, country with the greatest cultural offer on a planetary level. The authors considered the choice to focus on Italy adequate because it is a country that has always offered great potential from a cultural point of view. The increase in start-ups, also in Italy, that use innovative approaches could finally facilitate the cultural potential also from a business point of view.

In line with this trend, as part of the recovery plan, the Italian government has allocated specific resources for the growth of Italian cultural startups, in particular: half a billion euros for the digitization of museum collections, archives, libraries and places of culture; 300 million euros to improve the energy efficiency of cinemas, theaters and museums; 455 million euros to improve the competitiveness of the film and audiovisual sector (Cultura.gov.it).

During the COVID-19 pandemic the culture sector has suffered a significant decline globally. The numbers speak for themselves: In April 2020, almost all museums around the world were closed because of the COVID-19 pandemic, according to 94,7% of respondents (International Council of Museum, 2021). In 2020 the turnover of European creative and cultural activities decreased by 31% compared to the previous year (European Commission, 2021). Faced with this situation, the European Commission made a step toward increasing incentives for cultural organizations.

European financial allocations naturally start from the assumption that culture will make a great contribution to the restarting of countries. In addition to an important economic role, the culture sector also plays a more crucial role than ever at a geopolitical level (Pecquer, 2021).

The European Union has decided to increase investments in the cultural sector: + 50% in the period 2020-2027 with a budget of 2.2 billion euro.

The Recovery plan introduces fundamental resources that demonstrate how culture is at the center of the choices of the Italian government. The National Recovery and Resilience Plan reserves 6.675 billion euros for Culture to increase the level of attractiveness and improve the digital and sustainability standards of the sector.

As part of the recovery plan, the Italian government has allocated specific resources for the growth of Italian cultural start-ups, in particular: half a billion euros for the digitization of museum collections, archives, libraries and places of culture; 300 million euros to improve the energy efficiency of cinemas, theaters and museums; and 455 million euros to improve the competitiveness of the film and audiovisual sector (Cultura.gov.it).

An innovative and technological approach to cultural management is now essential. Interventions at various levels are necessary for cultural organizations, from the capillary installation of the Wi-Fi network to the specialization of skills.

Through this investigation we would like to investigate some cases of Italian start-ups in the field of culture that use a “phygital” approach. We have chosen to focus on start-ups because we believe they have the right characteristics to experiment with new innovative solutions in this area.

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