The relations in DE are much more
complex than those in a centralised economy. This feature makes the whole economy more
stable – leaf nodes no longer rely on just one central node. It also resembles
ecological networks, making it a good practical example of
industrial ecology. 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. By doing this, they become a better reflection of their social environment and in that way they can improve
quality of life. The whole concept of DE is not at all a new invention – this is how most
pre-industrial economies were organised. However,
information technology has opened new doors for the concept:
information can be shared much more easily and small-scale production facilities (
rapid prototyping) are becoming cheaper. The DE concept works well with the development of
fab labs. Not all industries are fit for DE; for example, many chemical processes only become economically feasible & efficient on a large scale. On the other hand,
bio-energy and consumer products are interesting candidates. ==See also==