Revitalizing Territories through Family Businesses: The Integration of Tradition, Innovation, and Legacy

This paper investigates how family businesses contribute to territorial regeneration by integrating collaborative innovation, entrepreneurial legacy, and tradition. The study explores the challenges family firms face in fostering external collaborations while preserving control over their unique resources and long-term vision. It examines how these firms build legacies that inspire local entrepreneurship and act as catalysts for local ecosystems. Using a longitudinal single case study of a historic Italian family business, the research highlights a dual approach: preserving cultural heritage through a foundation and fostering open innovation through an innovation hub. This combination has positively impacted the local community, stimulating entrepreneurship and revitalizing the local economy. By synthesizing insights into the mechanisms that enable family firms to balance tradition and innovation, the study provides theoretical contributions to family business strategy and practical implications for leveraging legacy and innovation to support regional development.