The article considers the formation of the industrial design model in Italy in the peculiarity of socio-political conditions at the turn of the 20th century. Orientated towards the prospects of the design industrial culture, the progress of new art tended towards two vectors of development: a strong influence of traditional heritage of the great classical past and passion for modern examples of European design schools. The design, formed within the boundaries of the Italian regional version of the Art Nouveau style, stile Liberty, became a product of a specifically Italian design and artistic culture with a strong designer’s original creative beginning. It allowed freedom of experimentation in the search for its own unique means of expression. The industrial model of design was determined by the experience of the great craft heritage in addition to the influence of the artistic traditions of the new style. The new “revival” of the artistic industry of Italy took place in symbiosis of the activities of an artist-designer and artistic craft and industrial production. The Aemilia Ars group, as a regional design and production association, became an exemplary model of industrial design in Italy. The multidisciplinary structure of the association, which included a collaboration of architects, designers, and artisans specialising in various areas of the art industry, allowed the implementation of interdisciplinary tasks: from architectural restoration to interior design solutions. The group was an example of a unique design culture focused on a scientifically based approach, regional craft artistic traditions and an original style of a creative experiment. The great design-artistic and technological heritage as well as design potential of the Aemilia Ars craft traditions can still be found in the practice of a number of local associations of embroiderers of modern Bologna.