The Fab Economy – Economic Governance Design and Digital Infrastructure

In this contribution we develop the contours of a Fab Economy and how it can be implemented with a well-fitting digital infrastructure. We do so by first analysing microeconomic and transaction cost economic characteristics of a “Data-in-Data-out” Fab Economy, where bits circulate globally and atoms circulate locally. Based on this, we derive an economic structure (governance) of the overall Fab Economy at different stages of its value chain. The findings are finally used to define essential success factors that a digital infrastructure must implement so that a Fab Economy can thrive on it.