Microfactories and the new economies of scale and scope

Purpose The purpose of this paper is to explore the microfactory model, the elements that enable it and its implications. The authors argue that microfactories reduce the risks and costs of innovation and that they can move various industries toward more local, adaptive and sustainable business ecosystems. Design/methodology/approach This conceptual paper explores several processes and practices that are relatively new; hence, it uses online secondary sources (e.g. interviews with CEOs, videos, blogs and trade magazine articles) extensively. Findings Given its versatility and high automation levels, the microfactory model can fill the gap between artisanal and mass production processes, boost the rate of innovation, and enable the local on-demand fabrication of customized products. Originality/value This paper contributes to the discussion on the economic advantages and disadvantages of scale and scope, which have been insufficiently explored in the digital domain.