Models for continuous improvement processes and for game-based learning currently have some drawbacks. Based on work with Karlstad Lean Factory®, a dual model for game-based learning and improvement processes is presented. This model also shows instructional scaffolding, and there is evidence that its use stimulates training transfer. A natural step is to extend the use of fullscale lean production simulators to a novel use as innovation testbeds. This can lower the threshold for production innovation in SMEs. A small case study shows how this novel use can be organised, with several benefits for the company.