Urban production in the sense of producing and processing material goods in densely populated areas (Brandt et al. 2017) has been gaining in importance again in recent years. Reasons for this include more resource-efficient and lower-emission manufacturing processes, shorter transport and work routes, or proximity to research and educational institutions. While many studies on urban production refer to agglomeration areas, there is a lack of knowledge on less densely populated regions and also on small and medium-sized cities. This article will take a look at this focus and present the initial findings of a research project that identifies framework conditions and networks together with companies in small and medium-sized towns in Saxony.