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Digital festivals can help local businesses test technologies, learn practical skills and meet potential customers, collaborators, funders and investors. Their value depends on what happens after the event: a busy programme or satisfied attendees alone do not show that firms adopted new tools, earned more revenue or created lasting partnerships.
What counts as a digital festival?
The term covers two different kinds of event. A technology-focused digital festival is organised around digitalisation, technology or innovation, often for small and medium-sized businesses (SMEs), start-ups, researchers and public innovation organisations. A traditional festival using digital tools remains primarily a cultural or tourism event, but may use livestreaming, virtual experiences, digital marketing or drone displays to serve audiences and businesses.
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The first type is chiefly a business-learning and ecosystem-convening format. The second can extend an existing festival’s reach and connect its tourism, hospitality and creative-economy partners to digital services. They can both benefit local firms, but the mechanisms—and the outcomes organisers should measure—are different.
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Make technologies tangible before a business invests
Demonstrations and hands-on workshops let business owners see how a technology might apply to real operations, rather than encounter it only as an abstract sales pitch. At Panorama 2023, a digitalisation festival profiled by the European Digital Innovation Hubs Network, practical examples spanned agriculture, forestry, manufacturing, disaster prevention and building information.
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That kind of contact can help a firm identify a use case, ask implementation questions and judge whether a tool warrants further exploration. It is not the same as a full trial or a proven return on investment: businesses still need to assess costs, fit, skills and expected benefits in their own circumstances.
Build skills through peer learning
Workshops can give participants a starting point for using technology, while conversations with peers expose them to challenges and approaches they may not encounter in their own organisation. In the Panorama case, the post-event questionnaire asked whether attendees had acquired new knowledge and learned about new technologies. Among respondents, 38.5% rated this 10 out of 10, 15.4% rated it 9, 30.8% rated it 8, 7.7% rated it 7 and 7.7% rated it 6.
These figures describe respondents’ reported experience after one 2023 event; they are not a test of skills before and after, or evidence that participants changed business practices.
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Bring potential partners into the same room
A festival can convene SMEs, start-ups, technology suppliers, research organisations, investors, funders and public innovation programmes that might otherwise have few opportunities to meet. A well-designed programme gives those groups a reason to exchange practical information: a business can describe a problem, a researcher or supplier can explain a possible solution, and a start-up can identify a potential partner or customer.
At Panorama, a “Spotlight” session connected start-ups with investors. That is an access opportunity, not proof that investment followed. The same distinction applies to introductions to public programmes and funders: a meeting can open a door, but an application, award or commercial agreement is a separate outcome.
Create visibility and routes to customers
Exhibits, demonstrations and public-facing sessions can give local firms a platform to explain what they do to prospective customers and partners. For smaller businesses, visibility may be useful when the festival attracts a relevant audience rather than simply a large one. Organisers should therefore consider whether attendees include the buyers, collaborators or decision-makers local firms actually need.
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What the Panorama 2023 case shows—and what it does not
The Panorama profile documents practical demonstrations, workshops, investor-start-up contact and attendee feedback. It also identifies two follow-up collaborations known to the European Digital Innovation Hubs Network:
- A mechanical reforestation project involving Josephinum Research and two foresters.
- An AI and sustainable-furniture workshop involving Building Innovation Cluster, FH Wiener Neustadt and Eviden.
These are concrete examples of activity continuing beyond the event. The profile does not establish their longer-term commercial impact, such as revenue, productivity or jobs. It also reports that organisers had not measured attendees’ networks before and after Panorama, so it cannot show whether participants’ networks expanded overall.
The case study is an official success story, and its satisfaction figures are participant reports rather than independent impact evaluations. Its claims about possible future efficiency gains or funding should be read as prospective, not as measured results. It is useful evidence of how a festival may create opportunities and follow-up activity, not proof that digital festivals generally cause durable local growth.
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How cultural and tourism festivals use digital tools
A cultural or tourism festival can use digital services to extend its reach or connect visitors with local businesses, without becoming a technology-focused business event. Examples described in the APEC report on digitalisation for tourism MSMEs include programmable drone shows for festivals and tourist sites in Korea, and virtual tourism experiences coordinated with local food and beverage delivery partners. The report also describes regional tourism groups providing digital marketing support and training to micro, small and medium-sized enterprises.
These examples include pandemic-era programmes and specific regional models; they are not evidence that every festival can reproduce the same results today. They do show how an event’s digital layer might create work for local suppliers, promote food and hospitality businesses, or connect a remote audience to a place. Any benefit depends on the local partners, audience and delivery arrangements involved.
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What local impact can—and cannot—be claimed
Events can be tools for local development, but an event’s attendance or satisfaction score is not the same as its economic impact. The OECD’s 2024 policy brief frames event impacts across skills and employment; business development, trade and investment; inclusion and participation; tourism and placemaking; and local-level measurement. It offers an evaluation framework, not a causal estimate of what digital festivals achieve.
The available examples do not establish a typical net increase in local spending, jobs or long-term productivity from digital festivals. Nor do they show that any gains would not have happened without the event. To make a credible local claim, organisers need to track outcomes over time and distinguish festival-related activity from other changes in the local economy.
Technology access is also not enough on its own. The World Bank’s tourism digitalisation and innovation policy document notes that SMEs can lack the data and skills to calculate returns on digital investment, as well as access to finance. Its recommendations include clearer evidence of value across the tourism value chain, attention to financing and investment gaps, and support for local start-up ecosystems and collaboration. A festival may help firms meet partners or see possible applications, but it cannot by itself resolve those constraints.
How organisers can tell whether a festival is working
Start with the event’s purpose, then measure whether it delivered relevant opportunities and whether participants acted on them. A useful scorecard follows the OECD’s local-development dimensions while distinguishing immediate outputs from later outcomes:
- Participation and inclusion: Record which local firms, start-ups, researchers, public bodies and community groups took part. Check whether cost, geography, accessibility or programme design excluded smaller firms or other intended participants.
- Learning and capability: Ask what participants learned, then follow up to see whether they applied a skill, changed a process or tested a technology. Satisfaction can complement, but not replace, evidence of change.
- Technology adoption: Track whether businesses moved from seeing a demonstration to running a pilot or adopting a tool. Where feasible, ask what investment, support and barriers were involved.
- Connections that continue: Record introductions, then check later whether they led to a collaboration, mentoring relationship, procurement opportunity, funding application or project. Count only outcomes that can be verified, and define the period being measured.
- Business and local outcomes: Where suitable and with participants’ consent, follow up on outcomes such as contracts, investment, employment, visitor referrals or local supplier spending. Specify the period and how the information was collected.
- Attribution and context: Report what the festival directly documented and what participants reported. For stronger claims about effects, compare outcomes with an appropriate baseline or comparison group and account for other local programmes and market changes.
When comparing two programmes, assess purpose and audience, practical opportunities to test or learn, access to relevant peers and partners, inclusion, follow-through, and the quality of outcome evidence. These criteria help distinguish a compelling event from one that reliably converts attendance into lasting value for local firms.
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