Distributed economy

Distributed economies (DE) is a term that was coined by Allan Johansson et al. in 2005.

[1] There is no official definition for DE, but it could be described as a regional approach to promote innovation by small and medium-sized enterprises, as well as sustainable development.

A big advantage of DE is that it enables entities within the network to work much more with regional/local natural resources, finances, human capital, knowledge, technology, and so on.

It also makes the entities more flexible to respond to the local market needs and thus generating a bigger innovation drive.

Not all industries are fit for DE; for example, many chemical processes only become economically feasible & efficient on a large scale.