ABSTRACT
This chapter discusses how to handle the triangle of structural change, institutional preconditions and innovation in coping with the future. Institutions thus represent, by definition, not only a factor of societal stability, transparency and order but also a factor of societal inertia that could take the form of a hindrance to necessary structural changes and adaptations. The main body of literature dominating the discussions on innovation falls into the first category, theming it as a concept with strong relevance to economic change. The spatial perspective of Nordic varieties is as important to our argument on temporal change. The complexity interweaving the three components of innovation, systemic/structural change and institutional change poses problems beyond the reach of mainstream policy creation. This complex and rich institutional framework is generally understood to have induced responsible and inclusive participation of workers at the micro level, have unleashed the creativity and innovation potential of the societies.
