Italian Cultural Industries Struggle to Scale Due to Fragmented Markets

Stefano Monti analyzes why Italy's cultural and creative industries (ICC) fail to expand, contrasting fragmented sectors like independent video game development and museum services with industrial ones like publishing and audiovisual. He notes that many ICC sectors are characterized by low demand, excess supply, and micro-enterprises competing locally, while large players dominate nationally. Monti uses Feltrinelli's acquisition of Scuola Holden as an example of vertical integration in publishing, rare in other cultural sectors. He argues that small ICC firms rarely possess unique patents or licenses that attract acquisition, leading instead to non-binding partnerships where large firms exploit pricing power. Monti suggests that public policy could incentivize extraordinary finance operations to foster integration and growth in underserved cultural markets.