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Nation Branding in a Globalized World:
  International Conference on the Economics, Political and Cultural Dimensions of Nation Branding
                                  Berlin, July 29th – August 1st, 2010

                           Mixing Tangible and Intangible Heritages:
                                   Design as a Nation Brand
                                               Angela Besana
                                      Associate Professor of Economics
                                              IULM University
                                                Milan - Italy
                                                www.iulm.it
                                           angela.besana@iulm.it

Abstract
Tangible and intangible heritages are the common contents of the Culture of a Nation. Nevertheless, both the
economic literature and that one of the history of arts, they have increased and specified the categories of
“works of art” for decades. Often hidden by the widespread well-known traditional “works” such as
paintings and sculptures (the tangible) or festivals and oral traditions (the intangible), applied arts are now
target of collecting and exhibiting. Most of all, design has been a manufacturers’ business for centuries and
now it seems to have assumed the dignity of artists’ business. As a matter of fact, museums of design are
now opening all over the world.
Design is, first of all, the industrial supply chain of well-known Made In, when the original and creative Idea
is matched to Applications. At a second step of the conceptualization, the creative content of design is
qualified as an applied art.
Particularly, “Design Museums” exhibit collections of famous designers, stylists and firms. The supply chain
of famous brands could find a show in the Museum Rooms. Displaying the history of supply chains, Design
and Industrial Museums are attracting new visitors, who appreciate applied arts and would like to experience
a “creative visiting”.
The Made in Italy has been a famous Nation Brand from the point of view of manufacturers of coffeepots,
furniture, fashion and so on. Today, both manufacturers and exhibitors of the Made in Italy are nurturing the
Brand as for both of its features, the manufacturing and cultural ones.
The aim of the paper is the investigation of Italian Design as a creative “manufacturing and cultural
industry”. Who is the exhibitor of this “Cultural Nation Brand”?
In the first paragraph it will be introduced the concept of design, matching industrial locations and Museums
of applied arts, industrial history and design. The second paragraph will focus on Italian Firms who have
founded an Association joining all their Industrial Museums for the organization of events and the
development of research and innovation. In the third paragraph there will be an analysis of the Triennale
Foundation, the most famous Design Museum now in Italy, exactly in Milan. In the fourth paragraph,
economic performances of a sample of USA Museums of Applied Arts and the Triennale Foundation will be
compared with cluster analysis.

Index
1. Manufacturing and Cultural Industry: Design as a Nation Brand
2. The Industrial Culture: the communication mix of factories, shops and industrial museums
3. The Triennale Foundation in Milan: a successful museum of modern and contemporary design
4. The Triennale Foundation and USA Design (Applied Arts) museums: a comparative analysis of economic
performances
Concluding remarks

Keywords: creativity, design, museum, branding, cluster




                                                                                                             1
1. Manufacturing and Cultural Industry: Design as a Nation Brand
The economic literature is today discussing the nature and boundaries of the cultural sector. Especially, the
creative industry is the label that seems mostly inclusive of all categories, firms and entrepreneurs who are
related to original, artistic, cultural contents and, often, they are of for-profit and not-for-profit institutional
forms. Performing and visual arts, tangible and intangible heritages, they are today assumed as a “limited
definition” of cultural industries. Boundaries are wider than what was the focus of the last century’s
economic literature, though classification problems are at the same time relevant, especially when too many
and wide “categories” are mixed in the same competition arena (Roodhouse, 2008).
Creativity seems much more comprehensive than Culture, including sectors whose main resource is an
original concept and content.
Caves (2000) refers to the wide range of industrial categories joint in the concept of “creative industry”: …
creative industries are industries that supply goods and services that we broadly associate with cultural,
artistic, or simply entertainment value.
Rutten et al. (2004) specially focus on the meaningful contribution of the creative team production: …
creative industries are those sectors in which goods and services are produced as the result of creative
labour.
Emphasizing both the labour input and the spatial aggregation of creative professionals, Florida (2002a)
assumes: creative class focuses on creative individuals …
Florida estimates creative industries’ growth through specific indexes: innovation index: number of patents
(per capita); high tech index: high tech innovation at a urban and national level; gay index; and the creative
class index: the percentage of creative professionals of the whole population.
The following Figure regards the spreading nature of creative industries from an Artistic Core Business to
Knowledge Intensive Services, from tangible to intangible heritage, from Arts to Businesses:

                                           Figure 1. Crossing Creativity
          Knowledge
          Intensive
          Services (ICT,
          R&D)
                       Media &                                                                 Creative
                       Entertainment                                                           Business
                       (film industry,                            Arts,                        Services
                       television,                             performing                      (Design,
                       publishing, etc.)                       and visual                      advertising,
                                                                                               corporate
                                                                                               communication,
                                                                                               etc.)




                 Source: de Jong, Fris, Stam, 2007.

The spatial allocation of creative skills is a main issue of the latest economic literature as the creative
teams are mobile and nation boundaries are often physically and virtually – through the web - crossed
in order to produce creative contents. Creative professionals, firstly, concentrate in towns where they
profit by:
    o A large, dense labour market that facilitates job mobility
    o A lifestyle with a broad supply of leisure activities
    o Cafes and other meeting places for social interaction
    o Diversity and tolerance of different ideas, lifestyles, cultures and ethnicity
    o The regions’/place’s authenticity in the form of own culture
    o The region’s/place’s identity which have increased in importance when other forms of identity have
         decreased
The latest surveys about the geographical importance of creative industries may refer to districts or clusters.
Above all, urban clusters constitute incubators, which are tied together by dense networks that allow for
adding a more permanent dimension to the temporary or short-term features of projects. In other words, they
afford cumulative learning and they broaden the creative life cycle.

                                                                                                                  2
In urban clusters we can have evidence of prevailing characteristics and enablers of creative industries: the
number of patents per worker, especially if they grow to more than twice the national average; the for-profit
and the not-for-profit nature of entrepreneurship; the venture capital funding and other innovating financing
schemes for start-up firms; the extent of R&D, especially when it enables networks with universities and
research centres; the cost of living and the quality of living, matching creative innovations with several
entertainment opportunities.
The ranking of the Urban Creativity is not always referring to well-known “Big Cities” and it is lately
discussed if the metropolitan dimension is not a limitation of the spatial consideration of creative industries.
                                     Table 1. American Creative Counties
                                USA Counties                        Creativity Index
                               Los Alamos, NM                             3,50
                                Arlington, VA                             3,29
                                New York, NY                              3,27
                                 Howard, MD                               3,25
                               Montgomery, MD                             3,22
                                 Fairfax, VA                              3,21
                                 Douglas, CO                              3,18
                                  Marin, CA                               3,17
                                 Loudon, VA                               3,15
                                  Collin, TX                              3,15
                                      …                                    …
                                Albermale, VA                             3,06
                        Source: Gabe, Kolby, Bell, 2007

The latest economic literature has decoded the following hypothesis of Creative Cities. The dependent model
is granted by most public funds and it has a local dimension. The emerging or mature model is privately
owned and financed, medium and big sized, nationally and internationally developed.

                                      Table 2. The Creativity Life Cycle
Towns                                 Development Stage                     Features
Sheffield, S. Petersburg, Seoul,      Dependent                             Dependent on Public resources. Local
Taipei                                                                      Markets.
Brisbane, Dublin, Hong Kong           Looking for Autonomy                  Private property. Scale economies
                                                                            and scope economies. Indirect
                                                                            Support       by       the     Public
                                                                            Administration.
Glasgow                               Emerging                              Innovation and International Markets.
                                                                            Cultural Impact.
Los Angeles, Milan, New York          Mature                                Medium sized and Big Firms.
                                                                            National and International Markets.
Source: Foord, 2008.

In Figure 1. design is a creative business service, mixing an aesthetic value with a utility, a daily utility, an
application or an applied art. It bridges arts with basketry, textiles, pottery, metal, wood, leather.
Architecture and furnishing are included in most supply chains of design, combining inside and outside
(architectural and urban features) of arts and utility.
The ranking of design – as a work of art - is still argued. Architecture has found reputation through the
history of monuments styling and urban planning. Design and made in have lately met the cultural audience
approval. Designed tools were exhibited for the collective pleasure and they assumed an aesthetic value only
after paintings and sculptures. They were separated from entertainment and cultural consumption, as they
were first meant as a day-by-day manufacturing issue.
When they were firstly shown, they were usually displayed in factories, shops, industrial archives and
museums, these ones where firms exhibited their history, their development, their R&D performance and
their latest product innovation.
They were legitimated as works of art or material culture only with the 2003 Convention for the
Safeguarding of the Intangible Cultural Heritage (Paris, 17th October 2003). Unesco underlined the
meaningfulness of intangible cultural heritage as a mainspring of cultural diversity and as a guarantee of

                                                                                                                3
sustainable development, next to the well-known tangible heritage. In the Unesco’s definition “intangible
cultural heritage” includes “… the instruments, objects, artefacts and cultural spaces that communities,
groups and, in some cases, individuals recognize as part of their cultural heritage”. This intangible culture is
a manufacturing tradition that is constantly recreated by communities, groups, firms in response to their
environment and provides them with a sense of identity and continuity, brands of cultural diversity and
human creativity.
Design and architecture are then included in this wide definition and connections with local roots,
communities and the so-called social capital are strongly emphasized.
The main feature of the material culture is, as a matter of fact, the communitarian aspect: material
cultural heritage is not the outstanding masterpiece of an artist, though a personal creative idea could
emerge, but it is made by the products and objects resulting from a traditional knowledge, from a
traditional skill and from the same producing cluster. This cluster may have national boundaries,
giving evidence of a manufacturing tradition, now with the dignity of a work of art.
The national design may be displayed in the following locations:
   a.     the Design Factory supplies the original Made In: from furniture to coffeepots, from fashion to
   architectural design.
   b.     The Design Shop supplies designed goods and services. The main relation is that one of produce-to-
   consumer, whose choice is determined by fashion, specific tastes and easthetics.
   c.     The Museum of (industrial) Design collects modern and contemporary designed objects, with some
   retrospection of past designed art.
   d.     The Museum of Modern and Contemporary Arts – more often than the Museum of Arts - selects
   rooms in order to display designed works of the permanent collection or of touring exhibitions.
   e.     The Museum of Crafts and Community Traditions displays the history of a supply chain, locally
   referred to a local production tradition.
   f.     The Firm or Industry Museum shows the history and the latest advancement of a specific supply
   chain, referred to a specific industry, still with an ongoing commitment to innovation.
   g.     The Industrial Fair shows the innovation in the objects designing.
   h.     The Urban Space shows the evolution of urban development and organize shows of local
   productions, from architecture to made in.
It cab be easily recognized that Design is in “traditionally meant” Museums but also in displaying rooms of
Firms, showing their past and present history as sellers and exhibitors. It is in Fairs and City Festivals, where
it is not only brand of a local tradition but also the latest product innovation. The Museum of Design has not,
therefore, an international reputation of a unique identity.
The Design has been gaining esteem much more in international exhibitions like fairs – where the boundary
between an art exhibition and a commercial opportunity is very fragile - than in a proper location such as a
Museum for more than fifty years. European Museums of design are well-developed institutions that are now
gaining overwhelming renown through international sessions, fairs not excluded.1
In the end, if it is considered that most of Made in Italy is a Creative Content and it is design and that
design is nowadays legitimated as a “work of art”, the Italy branding and the Italian landscapes they
are both enriching themselves of new locations, from industrial plants to shops, from fairs to design
museums. Strategic opportunities for an international branding through the manufacturing and
cultural values of design might be further exploited.

2. The Industrial Culture: the communication mix of factories, shops and industrial museums
Italian Industrial Museums are originated by famous entrepreneurs and designers who profit by a mature and



1
  Museums of Modern and Contemporary Arts have already tested their design collection and their design shows in
order to enhance their partnerships and networks with local communities. Design does not only bridge arts – aesthetic
values with functionality in several artistic shapes, bridging the gap between ancient and contemporary crafts – but it is
also an opportunity in order to increase partnerships and growth potentials. Two examples could be mentioned: the
Artist Studio or the Artist in Residence, where the artist is engaged to produce in the Museum, having him as a guest for
an internship program. The Artist could even produce one-of-a-kind objects for sale as Merchandising or Museum
retail. The Artist could also supply local firms with projects that might influence the production chain and innovation.
Summer Schools or networks with Schools and Universities are another example: Museums supply their skilled
employees for the education of the young generation in creative works.
                                                                                                                        4
international reputation as businessmen. The most famous Italian Industrial Museums 2 are members of the
Italian Association Museimpresa. Born in 2001 in Milan, the Association Museimpresa has the support of
Assolombarda and Confindustria, the main associations of the Italian manufacturing industries. The main
goal of the Association is the promotion of industrial (firm) collections and archives, networking with
museums, firms, institutions and the cultural demand. The Association is carrying on research, education and
development programs.3
Main targets are: industrial museums to be promoted and advertised; firms estimating the showing
opportunity of their histories; the general audience in order to teach the main contents of the Made in Italy
and the Corporate Culture Value.
Among the latest events are: the editing of the Guide Industrial Tourism in Italy, with Touring Club, the
main Association promoting the Italian Landscapes and Heritage and the organization – Confindustria is the
promoter - of The Week of the Industrial Culture (in November), when firms are invited to show the history
and designing of their past and present supply chains to several audiences, from schools to universities, from
managers to curators.4 . If the Nation Italy is usually branded for the tangible cultural heritage, which is a
famous destination of international tourists’ flows,5 Industrial Museums now have their Tourists’ Guide,
edited by the Touring Club, the most famous Italian editor of Guides, Books and Media for the tourism
promotion too.
Car and Food Supply Chains are above all represented. Members are well-known firms that positively affect
the Italian Balance of Payments: Aboca Museum, Alessi Museum, Alfa Romeo Archive and Museum,
Alinari, Giorgio Amarelli, Artsana, Banca Intesa Archive, Barilla, Bergallo, Peroni Beer, Borsalino Hat
Museum, Ducati, Eni, Ferragamo, Ferrari, Fiat, Guzzini, Kartell, Lamacart, Lungarotti, Martini&Rossi,
Olivetti, Piaggio, Pirelli, Rossimoda, Safilo, Dalmine, Zucchi, etc.
Italian Industrial Museums show not only the Italian Young Heritage of Design but also their R&D, their
innovations and ongoing best practices. As a matter of fact, they combine utility with an aesthetical added
value. These collections are not simply showrooms. They are perfectly merging arts with industrial models
and the categories are quite wide:
1.       Arts: paintings, sculptures, engravings, archeological artifacts and remains, furnishing, maps, etc.
2.       Documents and photos: documents about the history of the firm, reports, industrial design, films,
books, manuscripts, etc.
3.       Prototypes and models.
4.       Instruments for the production and storage: machinery, plants, containers, etc.
5.       Products: today and past samples.
6.       Raw materials.
As for the contemporary daily utility, they display cars, fashion, gastronomy.

                 Table 3. The percentage composition of industrial supply chains displayed
                                        in 23 Italian Industrial Museums
                      Industries                                               %
      Cars. motor scooters and other vehicles                                  31
                     Gastronomy                                                18
                       Fashion                                                 17
                       Design                                                  17
        Territorial and other local traditions                                 17
Source: own elaboration


2
  In this section and the following ones Industrial Museum, the Museum of Applied Arts and the Design Musuem are
supposed the same.
3
   The ultimate aim is to increase relationships between industrial culture and communities. The local, national and
international reputation of the Made in Italy should be improved thanks to connections with schools and universities,
Ministries of Culture and Foreign Affairs. The number of initiatives is soaring. The same is for numbers and ambitions
of Agreements and detailed planning.
4
  The results of a IULM University Research about Industrial Museums were presented on the 16th of November 2009
during the Week for the Industrial Culture at IULM University with a large students’ and experts’ audience.
5
  In 2008 the Italian Ministry of Cultural Activities counts 19.6 million (58% of the total flows) international tourists in
Italian Art Cities.
                                                                                                                          5
As for the category “work of art”, 23 industrial museums, who are members of Museimpresa, were examined
through a cluster analysis – not hierarchical with the Ward Method and JMP IN The Statistical Discovery
Software – with regard to the composition of their collection.
                     Figure 2. Hierarchical Clustering of 23 Italian Industrial Museums
            Museo Storico Alfa Romeo (Alfa Romeo)
            Museo Piaggio Giovanni Alberto Agnelli (Piaggio)
            Museo Scooter & Lambretta
            Museo della Motocicletta Frera (Frera)
            Museo Birra Peroni (Birra Peroni)
            Museo di Storia della Fotografia Fratelli Alinari (Alinari)
            Museo Ducati (Ducati)
            Museo Rossimoda della Calzatura d’Autore (Rossimoda)
            Museo Nicolis dell'Auto della Tecnica della Meccanica (Lamacart)
            Museo Torrini (Torrini)
            Museo dell’Orologio da Torre G. B. Bergallo (Bergallo)
            Galleria Ferrari (Ferrari)
            Museo della Ceramica Cottoveneto (Cottoveneto)
            Museo del Cavallo Giocattolo (Artsana)
            Aboca Museum (Aboca)
            Zucchi Collection Museum (Zucchi)
            Museo del Cappello Borsalino (Borsalino)
            Museo della Liquirizia Giorgio Amarelli (Amarelli)
            Kartellmuseo (Kartell)
            Museo Salvatore Ferragamo (Ferragamo)
            Museo della Paglia e dell’Intreccio “Domenico Michelacci”
            Museo del Vino - Museo dell'Olivo e dell'Olio (Fondazione Lungarotti)
            Museo Territoriale della Bassa Friulana - CID




        Source: own elaboration

Most of them are joint by a common supply chain: for the car and motor scooter industry, Museo Piaggio
Giovanni Alberto Agnelli and Museo Scooter & Lambretta; Museo Nicolis dell'Auto della Tecnica della
Meccanica and Museo Torrini for the mechanical industry.
Products are well displayed and two museums are particularly engaged in the exhibition of instruments:
machinery and mechanicals for the production and storage of output. These museums are Zucchi Collection
Museum and Aboca Museum. (blue cluster ×, Zucchi Collection and Aboca Museum).
Prototypes are prevailing in the light cluster green. Arts are combined with the history of the supply chain
(light green cluster + from Museo del Cappello Borsalino to Kartellmuseo).
Museo Ferragamo and Museo Michelacci are in the violet cluster            stressing the importance of raw
materials and the archive with a meaningful historical approach. Only other two museums emphasize the
importance of raw materials, Museo del Vino... and Museo CID in the dark green cluster . In this cluster
artistic topics and features are connected with the history of the museum and the artistic passions of
entrepreneurs. In the Museo del Vino and Museo dell'Olivo e dell'Olio the visitor may appreciate sculptures,
pottery, mythology and other archaeology in the ceramics of pots and other containers.
If prototypes are present in the red cluster ■ (from Museo Alfa Romeo to Museo Alinari), in these locations
arts are totally absent.
Museums of red ■ and orange □ clusters (from Museo Ducati to Museo del Cavallo Giocattolo) do focus on
production techniques and on the aesthetic applications too. Artistic features are perfectly matched with a
day-by-day utility.
As discussed these museums are collections of arts and prototypes, masterpieces and old machineries,
perfectly matching a Business Core with an Art Collector Mind.

3. The Triennale Foundation in Milan: a successful museum of modern and contemporary design
Triennale Public Institution was born in Monza (a town in Brianza) at the beginning of the last century, in
order to show innovations of the Italian applied arts, from material culture to design, from furnishing to the
textile industry. From the beginning of this century, Triennale became the Triennale Foundation and in
December 2007 the Triennale Foundation inaugurated the first Italian Museum of Design.
This collection is the basis for exhibitions concerning the Italian Design but the main intent is to implement
and nourish a continuous national and international touring of exhibitions. The aim is to give evidence of the
history of Italian industrial production, thanking Great Masters and upcoming Italian Creativity which is
well known all over the world.
The Museum is a network opportunity for several design firms, Made In and clusters spread over the Italian
landscape. The Italian Design is a diffuse identity with several connections with firms and firm museums and

                                                                                                            6
archives. The Corporate Identity of multiple of several firms is here emphasized thanks to specific
exhibitions. The promotion pole remains La Triennale where the “Made in Italy” Nation Brand
converges on the same mission and visions.
The Triennale Foundation supplies own exhibitions but not only exhibitions. Triennale rooms are also
locations for other famous European and not European Museums’ touring exhibitions,6 multipurpose events,
design laboratory activities, architecture forums, fairs and conferences on applied and contemporary arts.
Exhibition themes may spread from furnishing to car and motorcycle design, from architecture to urban
history and planning.
With this focus, the Triennale Foundation managers have improved and increased connections with private
stakeholders and support organizations and performances could be read in Reports. Private sponsors and
paying customers have increased, giving evidence of a managerial Board who regularly pays attention to
marketing and fundraising priorities.

                                Table 4. Main performances of the Triennale Foundation
From             2004       %         2005      %       2006      %       2007       %       2008       %     % Var.
Reports…                                                                                                      2008-
                                                                                                               2004
   Total       6.395.219   100      7.094.805   100   8.321.484   100   14.417.621   100   14.795.236   100   +131,3
  Public       2.241.484   35       2.333.723   33    3.177.860   38    3.217.752    22    3.208.246    22    +43,13
 contrib.
 Ministry      1.641.407            1.654.731         1.548.730         1.341.892          1.318.677
Lombardy        522.607              515.522           519.660           493.860            507.569
   Milan         77.470               77.470            77.470           350.000            350.000
Town Hall
   Milan           -                 86.000           516.000            516.000            516.000
 Province
   Milan           -                    -             516.000            516.000            516.000
 Chamber
Commerce
  Other        181.426      3       186.500      3    367.534      4    1.756.102    12    2.419.443    16    +1233
  public
 contrib.
   Own         3.972.309   62       4.574.582   64    4.776.090   57    9.443.767    66    9.167.547    62    +130,8
Revenues
Ticketing      1.101.621            1.311.841         1.209.037         1.544.039          1.120.755
 Sponsor        721.538             1.009.384         1.225.592         2.831.401          1.784.947
  Events       1.160.976            1.151.758         1.246.454         1.503.533          1.669.310
  Private       217.000              177.500           466.153          1.170.500          2.834.167
 contrib..
   Other       771.174              924.099           628.854           2.394.294          1.758.368
 revenues
Source: Triennale Reports, 2008, 2007 and 2006

Triennale di Milano Servizi srl, a for profit company, supports commercial operations, from conferences to
touring exhibitions, from shops to restaurant and Café management.
As it can be read in the previous table, the Triennale Foundation is privately supported, with consistent
revenues from ticketing and private contributions. The State has rather lost its main Fund-giver’s Role
though other Public Administrations (Milan Province, for example) have gained a meaningful role. For five
years both public contributions and revenues have been growing though at different percentages, +43,13%
and +130,8%. Revenue management results in a better performance, three times public contributions. It is to
be observed, otherwise, that other public contributions have positively exploded as Triennale Programmes
has gained in approval of several territory administrations - not only in Lombardy - and international ones for
several projects (for example, Expo Shanghai).
The Triennale Board includes Marketing Experts and Fundraisers, both particularly engaged in developing
offline and online strategies, in order to increase visitors and fundgivers.

4. The Triennale Foundation and USA Design (Applied Arts) museums: a comparative analysis of economic
performances For contemporary museums, both art and industrial/design ones, the competitive challenge

6
    Triennale counts a very good relationship with several design museums. For example, the German Vitra Museum.
                                                                                                                   7
consists of the varying targets and the attention capturing power. They must, therefore, find and improve in
the right marketing mix considering all the elements that make the famous “4P” (Product – Price - Placement
– Promotion).
If the marketing mix and the marketing strategy are successful, both ticketing revenues, private contributions
and net gains are supposed to increase. Marketing is, as a matter of fact, the strategy that is aimed to buying
consumers or private stakeholder such as sponsors or private philanthropists.
As mentioned in the previous paragraph, the Triennale Museum reveals a good proficiency in fundraising
both from public contributions and from private ones. Ticketing is profitable as for a efficient segmentation
of visitors and multipurpose events support the financial stability thanks to location rentals too.
Referring to a sample already defined in previous studies7 the following cluster regards the 2007 gains, 2007
ticketing revenues and 2007 private contributions of the Triennale Foundation and 35 USA Museums of
Applied Arts.
Cluster analysis is the process of dividing a set of observations into a number of groups. Hierarchical
clustering groups observations into clusters based on some measure of distance. There are several measures
of the proximity of observations, but the essential point is that observations that are “close” to each other are
joined together in groups. Each of them has the objective of minimizing within-cluster variation and
maximizing between-cluster variation. Particularly, the Ward method uses an analysis of variance approach
to evaluate the distances between clusters. In short, this method attempts to minimize the Sum of Squares of
any two (hypothetical) clusters that can be formed at each step. This method is most appropriate for
quantitative variables, it is accurate and shows the highest median accuracy.
In this analysis, 2007 gains, 2007 ticketing revenues and 2007 private contributions of the Triennale
Foundation and 35 USA Museums of Applied Arts were investigated from 990Forms 8 and Triennale 2007
Report and they were all indexed to total revenues.
                    Figure 3. Hierarchical Clustering of 35 USA Museums of Applied Arts
                                  and the Triennale Foundations (Ward Method)




        Source: own elaboration on Reports’ data

7
  Angela Besana, Ornella Ponzoni, Industrial and Design Museums: Innovation in Contents and Strategies, Papers and
Proceedings 35th Social Theory, Politics and the Arts Conference, 28-30th October 2009, Birkbeck University, Clore
Management Center, London, online at http://www.culture.info/knowledge/edocs/edocs-browse/search_result.
Angela Besana, “Applied arts and design in museums: USA and Milan experience”, online at http://mpra.ub.uni-
muenchen.de/12472/ - MPRA Paper No. 12472, March 2009.
8
  Form 990, Return of Organization Exempt From Income Tax, is the IRS's primary tool for gathering information
about tax-exempt organizations, for educating organizations about tax law requirements, and for promoting compliance
with tax law. It supplies several pieces of information: from the governance to the composition of assets, liabilities,
revenues and expenses of charities, not for profit organizations, those organizations engaged in the accomplishment of
good causes. With regard to a tax period beginning on the 1st of July and ending on the 30th of June, the Form 990 is an
annual document used by approximately one-third of all USA public charities to report information about their finance
and operations to the Federal Government. www.guidestar.org
                                                                                                                      8
Next to two crowded clusters, the green one with the Triennale Foundation and the blue one, two very small
clusters refer to some famous case histories. The following main features referring to 2007 performances can
be in the following table summarised:

                          Table 5. Main performance of Four Museums Clusters
        Clusters           Net Gain or Loss (as a % Ticketing revenues (as a Private contributions (as
                              of total revenues)       % of total revenues)    a percentage of total
                                                                                     revenues)
    The red cluster                 +11,5                      62,5                     16,5
   The orange cluster                -20,0                     36,0                     20,0
   The green cluster                +10,31                    11,58                    40,56
    The blue cluster                +36,05                     4,48                    81,36
Source: own elaboration on 2007 Statements of Revenues and Expenses

Looking at features of blue clusters The possibility of a very positive Net Gain is correlated to a mature and
meaningful private support of people, private citizens, grant-making institutions who believe in the
reputation and branding potential of these museums.
A negative result of the orange cluster is otherwise motivated by modest ticketing revenues and a scarce
private support.
In the red cluster, the ticketing is the main revenue source though the prevailing positive gain is always
matched with the highest private contributions.

Concluding remarks
From the point of view of economists, the Nation Branding is related to leading industries and well-known
Made in whose revenues derive of national and international markets. The exploitation potential of the
Italian Brand cannot be only related to famous Designers=Entrepreneurs who refer to buying customers, but
also to Museums who display the history of Industries and Creative Ideas who attract paying visitors, tourists
and the private philanthropy.
The opportunity and innovativeness of Italian Collections is now facing start-up and development phases
both in Industrial Museums and the Triennale Foundation, whose results are anyway quite considerable and
comparable to USA Giant cultural Institutions.
Italian and International Visitors’ Life Cycles could be promptly tested in order to verify and strengthen
marketing, fundraising strategies and the comprehensive Italy branding opportunity. Only an opened,
multitasking, miscellaneous and long term (pre)view of opportunities coming from the market could help
cultural managers and fundraisers not only to support but even to innovate their businesses, especially when
culture is migrating to industrial supply chains and vice versa and both they are mixing competences,
managing with curatorship. Consumers’ experiences and benefits could only improve thanks to marketing
and branding of the Design Cause. The Nation Reputation will improve at the same time.

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foroREAD. Mesa 2. Nation Branding in a Globalized World. Angela Besana

  • 1. Nation Branding in a Globalized World: International Conference on the Economics, Political and Cultural Dimensions of Nation Branding Berlin, July 29th – August 1st, 2010 Mixing Tangible and Intangible Heritages: Design as a Nation Brand Angela Besana Associate Professor of Economics IULM University Milan - Italy www.iulm.it angela.besana@iulm.it Abstract Tangible and intangible heritages are the common contents of the Culture of a Nation. Nevertheless, both the economic literature and that one of the history of arts, they have increased and specified the categories of “works of art” for decades. Often hidden by the widespread well-known traditional “works” such as paintings and sculptures (the tangible) or festivals and oral traditions (the intangible), applied arts are now target of collecting and exhibiting. Most of all, design has been a manufacturers’ business for centuries and now it seems to have assumed the dignity of artists’ business. As a matter of fact, museums of design are now opening all over the world. Design is, first of all, the industrial supply chain of well-known Made In, when the original and creative Idea is matched to Applications. At a second step of the conceptualization, the creative content of design is qualified as an applied art. Particularly, “Design Museums” exhibit collections of famous designers, stylists and firms. The supply chain of famous brands could find a show in the Museum Rooms. Displaying the history of supply chains, Design and Industrial Museums are attracting new visitors, who appreciate applied arts and would like to experience a “creative visiting”. The Made in Italy has been a famous Nation Brand from the point of view of manufacturers of coffeepots, furniture, fashion and so on. Today, both manufacturers and exhibitors of the Made in Italy are nurturing the Brand as for both of its features, the manufacturing and cultural ones. The aim of the paper is the investigation of Italian Design as a creative “manufacturing and cultural industry”. Who is the exhibitor of this “Cultural Nation Brand”? In the first paragraph it will be introduced the concept of design, matching industrial locations and Museums of applied arts, industrial history and design. The second paragraph will focus on Italian Firms who have founded an Association joining all their Industrial Museums for the organization of events and the development of research and innovation. In the third paragraph there will be an analysis of the Triennale Foundation, the most famous Design Museum now in Italy, exactly in Milan. In the fourth paragraph, economic performances of a sample of USA Museums of Applied Arts and the Triennale Foundation will be compared with cluster analysis. Index 1. Manufacturing and Cultural Industry: Design as a Nation Brand 2. The Industrial Culture: the communication mix of factories, shops and industrial museums 3. The Triennale Foundation in Milan: a successful museum of modern and contemporary design 4. The Triennale Foundation and USA Design (Applied Arts) museums: a comparative analysis of economic performances Concluding remarks Keywords: creativity, design, museum, branding, cluster 1
  • 2. 1. Manufacturing and Cultural Industry: Design as a Nation Brand The economic literature is today discussing the nature and boundaries of the cultural sector. Especially, the creative industry is the label that seems mostly inclusive of all categories, firms and entrepreneurs who are related to original, artistic, cultural contents and, often, they are of for-profit and not-for-profit institutional forms. Performing and visual arts, tangible and intangible heritages, they are today assumed as a “limited definition” of cultural industries. Boundaries are wider than what was the focus of the last century’s economic literature, though classification problems are at the same time relevant, especially when too many and wide “categories” are mixed in the same competition arena (Roodhouse, 2008). Creativity seems much more comprehensive than Culture, including sectors whose main resource is an original concept and content. Caves (2000) refers to the wide range of industrial categories joint in the concept of “creative industry”: … creative industries are industries that supply goods and services that we broadly associate with cultural, artistic, or simply entertainment value. Rutten et al. (2004) specially focus on the meaningful contribution of the creative team production: … creative industries are those sectors in which goods and services are produced as the result of creative labour. Emphasizing both the labour input and the spatial aggregation of creative professionals, Florida (2002a) assumes: creative class focuses on creative individuals … Florida estimates creative industries’ growth through specific indexes: innovation index: number of patents (per capita); high tech index: high tech innovation at a urban and national level; gay index; and the creative class index: the percentage of creative professionals of the whole population. The following Figure regards the spreading nature of creative industries from an Artistic Core Business to Knowledge Intensive Services, from tangible to intangible heritage, from Arts to Businesses: Figure 1. Crossing Creativity Knowledge Intensive Services (ICT, R&D) Media & Creative Entertainment Business (film industry, Arts, Services television, performing (Design, publishing, etc.) and visual advertising, corporate communication, etc.) Source: de Jong, Fris, Stam, 2007. The spatial allocation of creative skills is a main issue of the latest economic literature as the creative teams are mobile and nation boundaries are often physically and virtually – through the web - crossed in order to produce creative contents. Creative professionals, firstly, concentrate in towns where they profit by: o A large, dense labour market that facilitates job mobility o A lifestyle with a broad supply of leisure activities o Cafes and other meeting places for social interaction o Diversity and tolerance of different ideas, lifestyles, cultures and ethnicity o The regions’/place’s authenticity in the form of own culture o The region’s/place’s identity which have increased in importance when other forms of identity have decreased The latest surveys about the geographical importance of creative industries may refer to districts or clusters. Above all, urban clusters constitute incubators, which are tied together by dense networks that allow for adding a more permanent dimension to the temporary or short-term features of projects. In other words, they afford cumulative learning and they broaden the creative life cycle. 2
  • 3. In urban clusters we can have evidence of prevailing characteristics and enablers of creative industries: the number of patents per worker, especially if they grow to more than twice the national average; the for-profit and the not-for-profit nature of entrepreneurship; the venture capital funding and other innovating financing schemes for start-up firms; the extent of R&D, especially when it enables networks with universities and research centres; the cost of living and the quality of living, matching creative innovations with several entertainment opportunities. The ranking of the Urban Creativity is not always referring to well-known “Big Cities” and it is lately discussed if the metropolitan dimension is not a limitation of the spatial consideration of creative industries. Table 1. American Creative Counties USA Counties Creativity Index Los Alamos, NM 3,50 Arlington, VA 3,29 New York, NY 3,27 Howard, MD 3,25 Montgomery, MD 3,22 Fairfax, VA 3,21 Douglas, CO 3,18 Marin, CA 3,17 Loudon, VA 3,15 Collin, TX 3,15 … … Albermale, VA 3,06 Source: Gabe, Kolby, Bell, 2007 The latest economic literature has decoded the following hypothesis of Creative Cities. The dependent model is granted by most public funds and it has a local dimension. The emerging or mature model is privately owned and financed, medium and big sized, nationally and internationally developed. Table 2. The Creativity Life Cycle Towns Development Stage Features Sheffield, S. Petersburg, Seoul, Dependent Dependent on Public resources. Local Taipei Markets. Brisbane, Dublin, Hong Kong Looking for Autonomy Private property. Scale economies and scope economies. Indirect Support by the Public Administration. Glasgow Emerging Innovation and International Markets. Cultural Impact. Los Angeles, Milan, New York Mature Medium sized and Big Firms. National and International Markets. Source: Foord, 2008. In Figure 1. design is a creative business service, mixing an aesthetic value with a utility, a daily utility, an application or an applied art. It bridges arts with basketry, textiles, pottery, metal, wood, leather. Architecture and furnishing are included in most supply chains of design, combining inside and outside (architectural and urban features) of arts and utility. The ranking of design – as a work of art - is still argued. Architecture has found reputation through the history of monuments styling and urban planning. Design and made in have lately met the cultural audience approval. Designed tools were exhibited for the collective pleasure and they assumed an aesthetic value only after paintings and sculptures. They were separated from entertainment and cultural consumption, as they were first meant as a day-by-day manufacturing issue. When they were firstly shown, they were usually displayed in factories, shops, industrial archives and museums, these ones where firms exhibited their history, their development, their R&D performance and their latest product innovation. They were legitimated as works of art or material culture only with the 2003 Convention for the Safeguarding of the Intangible Cultural Heritage (Paris, 17th October 2003). Unesco underlined the meaningfulness of intangible cultural heritage as a mainspring of cultural diversity and as a guarantee of 3
  • 4. sustainable development, next to the well-known tangible heritage. In the Unesco’s definition “intangible cultural heritage” includes “… the instruments, objects, artefacts and cultural spaces that communities, groups and, in some cases, individuals recognize as part of their cultural heritage”. This intangible culture is a manufacturing tradition that is constantly recreated by communities, groups, firms in response to their environment and provides them with a sense of identity and continuity, brands of cultural diversity and human creativity. Design and architecture are then included in this wide definition and connections with local roots, communities and the so-called social capital are strongly emphasized. The main feature of the material culture is, as a matter of fact, the communitarian aspect: material cultural heritage is not the outstanding masterpiece of an artist, though a personal creative idea could emerge, but it is made by the products and objects resulting from a traditional knowledge, from a traditional skill and from the same producing cluster. This cluster may have national boundaries, giving evidence of a manufacturing tradition, now with the dignity of a work of art. The national design may be displayed in the following locations: a. the Design Factory supplies the original Made In: from furniture to coffeepots, from fashion to architectural design. b. The Design Shop supplies designed goods and services. The main relation is that one of produce-to- consumer, whose choice is determined by fashion, specific tastes and easthetics. c. The Museum of (industrial) Design collects modern and contemporary designed objects, with some retrospection of past designed art. d. The Museum of Modern and Contemporary Arts – more often than the Museum of Arts - selects rooms in order to display designed works of the permanent collection or of touring exhibitions. e. The Museum of Crafts and Community Traditions displays the history of a supply chain, locally referred to a local production tradition. f. The Firm or Industry Museum shows the history and the latest advancement of a specific supply chain, referred to a specific industry, still with an ongoing commitment to innovation. g. The Industrial Fair shows the innovation in the objects designing. h. The Urban Space shows the evolution of urban development and organize shows of local productions, from architecture to made in. It cab be easily recognized that Design is in “traditionally meant” Museums but also in displaying rooms of Firms, showing their past and present history as sellers and exhibitors. It is in Fairs and City Festivals, where it is not only brand of a local tradition but also the latest product innovation. The Museum of Design has not, therefore, an international reputation of a unique identity. The Design has been gaining esteem much more in international exhibitions like fairs – where the boundary between an art exhibition and a commercial opportunity is very fragile - than in a proper location such as a Museum for more than fifty years. European Museums of design are well-developed institutions that are now gaining overwhelming renown through international sessions, fairs not excluded.1 In the end, if it is considered that most of Made in Italy is a Creative Content and it is design and that design is nowadays legitimated as a “work of art”, the Italy branding and the Italian landscapes they are both enriching themselves of new locations, from industrial plants to shops, from fairs to design museums. Strategic opportunities for an international branding through the manufacturing and cultural values of design might be further exploited. 2. The Industrial Culture: the communication mix of factories, shops and industrial museums Italian Industrial Museums are originated by famous entrepreneurs and designers who profit by a mature and 1 Museums of Modern and Contemporary Arts have already tested their design collection and their design shows in order to enhance their partnerships and networks with local communities. Design does not only bridge arts – aesthetic values with functionality in several artistic shapes, bridging the gap between ancient and contemporary crafts – but it is also an opportunity in order to increase partnerships and growth potentials. Two examples could be mentioned: the Artist Studio or the Artist in Residence, where the artist is engaged to produce in the Museum, having him as a guest for an internship program. The Artist could even produce one-of-a-kind objects for sale as Merchandising or Museum retail. The Artist could also supply local firms with projects that might influence the production chain and innovation. Summer Schools or networks with Schools and Universities are another example: Museums supply their skilled employees for the education of the young generation in creative works. 4
  • 5. international reputation as businessmen. The most famous Italian Industrial Museums 2 are members of the Italian Association Museimpresa. Born in 2001 in Milan, the Association Museimpresa has the support of Assolombarda and Confindustria, the main associations of the Italian manufacturing industries. The main goal of the Association is the promotion of industrial (firm) collections and archives, networking with museums, firms, institutions and the cultural demand. The Association is carrying on research, education and development programs.3 Main targets are: industrial museums to be promoted and advertised; firms estimating the showing opportunity of their histories; the general audience in order to teach the main contents of the Made in Italy and the Corporate Culture Value. Among the latest events are: the editing of the Guide Industrial Tourism in Italy, with Touring Club, the main Association promoting the Italian Landscapes and Heritage and the organization – Confindustria is the promoter - of The Week of the Industrial Culture (in November), when firms are invited to show the history and designing of their past and present supply chains to several audiences, from schools to universities, from managers to curators.4 . If the Nation Italy is usually branded for the tangible cultural heritage, which is a famous destination of international tourists’ flows,5 Industrial Museums now have their Tourists’ Guide, edited by the Touring Club, the most famous Italian editor of Guides, Books and Media for the tourism promotion too. Car and Food Supply Chains are above all represented. Members are well-known firms that positively affect the Italian Balance of Payments: Aboca Museum, Alessi Museum, Alfa Romeo Archive and Museum, Alinari, Giorgio Amarelli, Artsana, Banca Intesa Archive, Barilla, Bergallo, Peroni Beer, Borsalino Hat Museum, Ducati, Eni, Ferragamo, Ferrari, Fiat, Guzzini, Kartell, Lamacart, Lungarotti, Martini&Rossi, Olivetti, Piaggio, Pirelli, Rossimoda, Safilo, Dalmine, Zucchi, etc. Italian Industrial Museums show not only the Italian Young Heritage of Design but also their R&D, their innovations and ongoing best practices. As a matter of fact, they combine utility with an aesthetical added value. These collections are not simply showrooms. They are perfectly merging arts with industrial models and the categories are quite wide: 1. Arts: paintings, sculptures, engravings, archeological artifacts and remains, furnishing, maps, etc. 2. Documents and photos: documents about the history of the firm, reports, industrial design, films, books, manuscripts, etc. 3. Prototypes and models. 4. Instruments for the production and storage: machinery, plants, containers, etc. 5. Products: today and past samples. 6. Raw materials. As for the contemporary daily utility, they display cars, fashion, gastronomy. Table 3. The percentage composition of industrial supply chains displayed in 23 Italian Industrial Museums Industries % Cars. motor scooters and other vehicles 31 Gastronomy 18 Fashion 17 Design 17 Territorial and other local traditions 17 Source: own elaboration 2 In this section and the following ones Industrial Museum, the Museum of Applied Arts and the Design Musuem are supposed the same. 3 The ultimate aim is to increase relationships between industrial culture and communities. The local, national and international reputation of the Made in Italy should be improved thanks to connections with schools and universities, Ministries of Culture and Foreign Affairs. The number of initiatives is soaring. The same is for numbers and ambitions of Agreements and detailed planning. 4 The results of a IULM University Research about Industrial Museums were presented on the 16th of November 2009 during the Week for the Industrial Culture at IULM University with a large students’ and experts’ audience. 5 In 2008 the Italian Ministry of Cultural Activities counts 19.6 million (58% of the total flows) international tourists in Italian Art Cities. 5
  • 6. As for the category “work of art”, 23 industrial museums, who are members of Museimpresa, were examined through a cluster analysis – not hierarchical with the Ward Method and JMP IN The Statistical Discovery Software – with regard to the composition of their collection. Figure 2. Hierarchical Clustering of 23 Italian Industrial Museums Museo Storico Alfa Romeo (Alfa Romeo) Museo Piaggio Giovanni Alberto Agnelli (Piaggio) Museo Scooter & Lambretta Museo della Motocicletta Frera (Frera) Museo Birra Peroni (Birra Peroni) Museo di Storia della Fotografia Fratelli Alinari (Alinari) Museo Ducati (Ducati) Museo Rossimoda della Calzatura d’Autore (Rossimoda) Museo Nicolis dell'Auto della Tecnica della Meccanica (Lamacart) Museo Torrini (Torrini) Museo dell’Orologio da Torre G. B. Bergallo (Bergallo) Galleria Ferrari (Ferrari) Museo della Ceramica Cottoveneto (Cottoveneto) Museo del Cavallo Giocattolo (Artsana) Aboca Museum (Aboca) Zucchi Collection Museum (Zucchi) Museo del Cappello Borsalino (Borsalino) Museo della Liquirizia Giorgio Amarelli (Amarelli) Kartellmuseo (Kartell) Museo Salvatore Ferragamo (Ferragamo) Museo della Paglia e dell’Intreccio “Domenico Michelacci” Museo del Vino - Museo dell'Olivo e dell'Olio (Fondazione Lungarotti) Museo Territoriale della Bassa Friulana - CID Source: own elaboration Most of them are joint by a common supply chain: for the car and motor scooter industry, Museo Piaggio Giovanni Alberto Agnelli and Museo Scooter & Lambretta; Museo Nicolis dell'Auto della Tecnica della Meccanica and Museo Torrini for the mechanical industry. Products are well displayed and two museums are particularly engaged in the exhibition of instruments: machinery and mechanicals for the production and storage of output. These museums are Zucchi Collection Museum and Aboca Museum. (blue cluster ×, Zucchi Collection and Aboca Museum). Prototypes are prevailing in the light cluster green. Arts are combined with the history of the supply chain (light green cluster + from Museo del Cappello Borsalino to Kartellmuseo). Museo Ferragamo and Museo Michelacci are in the violet cluster stressing the importance of raw materials and the archive with a meaningful historical approach. Only other two museums emphasize the importance of raw materials, Museo del Vino... and Museo CID in the dark green cluster . In this cluster artistic topics and features are connected with the history of the museum and the artistic passions of entrepreneurs. In the Museo del Vino and Museo dell'Olivo e dell'Olio the visitor may appreciate sculptures, pottery, mythology and other archaeology in the ceramics of pots and other containers. If prototypes are present in the red cluster ■ (from Museo Alfa Romeo to Museo Alinari), in these locations arts are totally absent. Museums of red ■ and orange □ clusters (from Museo Ducati to Museo del Cavallo Giocattolo) do focus on production techniques and on the aesthetic applications too. Artistic features are perfectly matched with a day-by-day utility. As discussed these museums are collections of arts and prototypes, masterpieces and old machineries, perfectly matching a Business Core with an Art Collector Mind. 3. The Triennale Foundation in Milan: a successful museum of modern and contemporary design Triennale Public Institution was born in Monza (a town in Brianza) at the beginning of the last century, in order to show innovations of the Italian applied arts, from material culture to design, from furnishing to the textile industry. From the beginning of this century, Triennale became the Triennale Foundation and in December 2007 the Triennale Foundation inaugurated the first Italian Museum of Design. This collection is the basis for exhibitions concerning the Italian Design but the main intent is to implement and nourish a continuous national and international touring of exhibitions. The aim is to give evidence of the history of Italian industrial production, thanking Great Masters and upcoming Italian Creativity which is well known all over the world. The Museum is a network opportunity for several design firms, Made In and clusters spread over the Italian landscape. The Italian Design is a diffuse identity with several connections with firms and firm museums and 6
  • 7. archives. The Corporate Identity of multiple of several firms is here emphasized thanks to specific exhibitions. The promotion pole remains La Triennale where the “Made in Italy” Nation Brand converges on the same mission and visions. The Triennale Foundation supplies own exhibitions but not only exhibitions. Triennale rooms are also locations for other famous European and not European Museums’ touring exhibitions,6 multipurpose events, design laboratory activities, architecture forums, fairs and conferences on applied and contemporary arts. Exhibition themes may spread from furnishing to car and motorcycle design, from architecture to urban history and planning. With this focus, the Triennale Foundation managers have improved and increased connections with private stakeholders and support organizations and performances could be read in Reports. Private sponsors and paying customers have increased, giving evidence of a managerial Board who regularly pays attention to marketing and fundraising priorities. Table 4. Main performances of the Triennale Foundation From 2004 % 2005 % 2006 % 2007 % 2008 % % Var. Reports… 2008- 2004 Total 6.395.219 100 7.094.805 100 8.321.484 100 14.417.621 100 14.795.236 100 +131,3 Public 2.241.484 35 2.333.723 33 3.177.860 38 3.217.752 22 3.208.246 22 +43,13 contrib. Ministry 1.641.407 1.654.731 1.548.730 1.341.892 1.318.677 Lombardy 522.607 515.522 519.660 493.860 507.569 Milan 77.470 77.470 77.470 350.000 350.000 Town Hall Milan - 86.000 516.000 516.000 516.000 Province Milan - - 516.000 516.000 516.000 Chamber Commerce Other 181.426 3 186.500 3 367.534 4 1.756.102 12 2.419.443 16 +1233 public contrib. Own 3.972.309 62 4.574.582 64 4.776.090 57 9.443.767 66 9.167.547 62 +130,8 Revenues Ticketing 1.101.621 1.311.841 1.209.037 1.544.039 1.120.755 Sponsor 721.538 1.009.384 1.225.592 2.831.401 1.784.947 Events 1.160.976 1.151.758 1.246.454 1.503.533 1.669.310 Private 217.000 177.500 466.153 1.170.500 2.834.167 contrib.. Other 771.174 924.099 628.854 2.394.294 1.758.368 revenues Source: Triennale Reports, 2008, 2007 and 2006 Triennale di Milano Servizi srl, a for profit company, supports commercial operations, from conferences to touring exhibitions, from shops to restaurant and Café management. As it can be read in the previous table, the Triennale Foundation is privately supported, with consistent revenues from ticketing and private contributions. The State has rather lost its main Fund-giver’s Role though other Public Administrations (Milan Province, for example) have gained a meaningful role. For five years both public contributions and revenues have been growing though at different percentages, +43,13% and +130,8%. Revenue management results in a better performance, three times public contributions. It is to be observed, otherwise, that other public contributions have positively exploded as Triennale Programmes has gained in approval of several territory administrations - not only in Lombardy - and international ones for several projects (for example, Expo Shanghai). The Triennale Board includes Marketing Experts and Fundraisers, both particularly engaged in developing offline and online strategies, in order to increase visitors and fundgivers. 4. The Triennale Foundation and USA Design (Applied Arts) museums: a comparative analysis of economic performances For contemporary museums, both art and industrial/design ones, the competitive challenge 6 Triennale counts a very good relationship with several design museums. For example, the German Vitra Museum. 7
  • 8. consists of the varying targets and the attention capturing power. They must, therefore, find and improve in the right marketing mix considering all the elements that make the famous “4P” (Product – Price - Placement – Promotion). If the marketing mix and the marketing strategy are successful, both ticketing revenues, private contributions and net gains are supposed to increase. Marketing is, as a matter of fact, the strategy that is aimed to buying consumers or private stakeholder such as sponsors or private philanthropists. As mentioned in the previous paragraph, the Triennale Museum reveals a good proficiency in fundraising both from public contributions and from private ones. Ticketing is profitable as for a efficient segmentation of visitors and multipurpose events support the financial stability thanks to location rentals too. Referring to a sample already defined in previous studies7 the following cluster regards the 2007 gains, 2007 ticketing revenues and 2007 private contributions of the Triennale Foundation and 35 USA Museums of Applied Arts. Cluster analysis is the process of dividing a set of observations into a number of groups. Hierarchical clustering groups observations into clusters based on some measure of distance. There are several measures of the proximity of observations, but the essential point is that observations that are “close” to each other are joined together in groups. Each of them has the objective of minimizing within-cluster variation and maximizing between-cluster variation. Particularly, the Ward method uses an analysis of variance approach to evaluate the distances between clusters. In short, this method attempts to minimize the Sum of Squares of any two (hypothetical) clusters that can be formed at each step. This method is most appropriate for quantitative variables, it is accurate and shows the highest median accuracy. In this analysis, 2007 gains, 2007 ticketing revenues and 2007 private contributions of the Triennale Foundation and 35 USA Museums of Applied Arts were investigated from 990Forms 8 and Triennale 2007 Report and they were all indexed to total revenues. Figure 3. Hierarchical Clustering of 35 USA Museums of Applied Arts and the Triennale Foundations (Ward Method) Source: own elaboration on Reports’ data 7 Angela Besana, Ornella Ponzoni, Industrial and Design Museums: Innovation in Contents and Strategies, Papers and Proceedings 35th Social Theory, Politics and the Arts Conference, 28-30th October 2009, Birkbeck University, Clore Management Center, London, online at http://www.culture.info/knowledge/edocs/edocs-browse/search_result. Angela Besana, “Applied arts and design in museums: USA and Milan experience”, online at http://mpra.ub.uni- muenchen.de/12472/ - MPRA Paper No. 12472, March 2009. 8 Form 990, Return of Organization Exempt From Income Tax, is the IRS's primary tool for gathering information about tax-exempt organizations, for educating organizations about tax law requirements, and for promoting compliance with tax law. It supplies several pieces of information: from the governance to the composition of assets, liabilities, revenues and expenses of charities, not for profit organizations, those organizations engaged in the accomplishment of good causes. With regard to a tax period beginning on the 1st of July and ending on the 30th of June, the Form 990 is an annual document used by approximately one-third of all USA public charities to report information about their finance and operations to the Federal Government. www.guidestar.org 8
  • 9. Next to two crowded clusters, the green one with the Triennale Foundation and the blue one, two very small clusters refer to some famous case histories. The following main features referring to 2007 performances can be in the following table summarised: Table 5. Main performance of Four Museums Clusters Clusters Net Gain or Loss (as a % Ticketing revenues (as a Private contributions (as of total revenues) % of total revenues) a percentage of total revenues) The red cluster +11,5 62,5 16,5 The orange cluster -20,0 36,0 20,0 The green cluster +10,31 11,58 40,56 The blue cluster +36,05 4,48 81,36 Source: own elaboration on 2007 Statements of Revenues and Expenses Looking at features of blue clusters The possibility of a very positive Net Gain is correlated to a mature and meaningful private support of people, private citizens, grant-making institutions who believe in the reputation and branding potential of these museums. A negative result of the orange cluster is otherwise motivated by modest ticketing revenues and a scarce private support. In the red cluster, the ticketing is the main revenue source though the prevailing positive gain is always matched with the highest private contributions. Concluding remarks From the point of view of economists, the Nation Branding is related to leading industries and well-known Made in whose revenues derive of national and international markets. The exploitation potential of the Italian Brand cannot be only related to famous Designers=Entrepreneurs who refer to buying customers, but also to Museums who display the history of Industries and Creative Ideas who attract paying visitors, tourists and the private philanthropy. The opportunity and innovativeness of Italian Collections is now facing start-up and development phases both in Industrial Museums and the Triennale Foundation, whose results are anyway quite considerable and comparable to USA Giant cultural Institutions. Italian and International Visitors’ Life Cycles could be promptly tested in order to verify and strengthen marketing, fundraising strategies and the comprehensive Italy branding opportunity. Only an opened, multitasking, miscellaneous and long term (pre)view of opportunities coming from the market could help cultural managers and fundraisers not only to support but even to innovate their businesses, especially when culture is migrating to industrial supply chains and vice versa and both they are mixing competences, managing with curatorship. Consumers’ experiences and benefits could only improve thanks to marketing and branding of the Design Cause. The Nation Reputation will improve at the same time. Bibliography ANDRES P., ARBIZU N., RUIZ-VILLA D. (2004), “Arguments behind Different Cultural Policy Models”, Papers and Proceedings of 2004 International Conference on Cultural Policy Research, École des Hautes Études Commerciales (HEC), Montréal, Canada. BENNET R., MOUSLEY W., ALI-CHOUDHURY R (2007), “Learning from the private sector: a quantitative study of marketing knowledge transfers from businesses to arts and cultural organizations”, Papers and Proceedings of 2007 International Conference on Arts and Cultural Management, Valencia, Spain. BERG L. van den, E. BRAUN e W. van WINDEN (2001),”Growth Clusters in European Cities: an Integral Approach”, Urban Studies, 38(1): 185-205. BESANA A. (2007), The Cultural Phoenix: Ashes and Roots, Unicopli-Cuesp, Milan, Italy. BESANA A. (2009), “Applied arts and design in museums: USA and Milan experience”, online at http://mpra.ub.uni-muenchen.de/12472/ - MPRA Paper No. 12472, March 2009. BESANA A., PONZONI O. (2009), Industrial and Design Museums: Innovation in Contents and Strategies, Papers and Proceedings 35th Social Theory, Politics and the Arts Conference, 28-30th October 2009, Birkbeck University, Clore Management Center, London, online at 9
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