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vol.16(4) (2017) 035-047, The paper discusses the open, inclusive, dynamic, proactive notion of cultural heritage that is emerging in the international scientific debate. Some significant innovations are examined first: the overcoming of the dualism between tangible and intangible cultural heritage, the increasing role of local communities in the processes of heritage recognition, safeguarding and enhancement and the need for valorisation as a democratic mandate. Aiming at developing this approach, the second step of the research focuses on industrial heritage, investigating its specific features and values. A case study is provided in order to understand some crucial issues concerning industrial heritage management and value creation. Focusing on the City of Paper (Fabriano, Italy), the activities carried out by the Museum of Paper and Watermark and by the Institute of Paper History Gianfranco Fedrigoni (ISTOCARTA) are analysed in-depth, highlighting the role of collaboration among the different actors involved in industrial heritage management in order to promote sustainable local development.