A research project has been initiated in Denmark by the Ministry of Business and Industry and the Danish Business Development Council which aims at giving a coherent picture of the situation for innovation by focusing on different levels of aggregation in the Danish system of innovation. An account of the main idea behind the project, its theoretical foundation and some results from the first part of the project are given in this article. The first part of the project is an investigation into the position and condition of flexibility and renewal in Danish companies. It is divided into two studies. The first study investigates the situation for flexibility and renewal in Danish companies and is based on a questionnaire. The second study follows up the results from the first study through a qualitative investigation in which the objective is to display some of the commonly seen and important factors that facilitate or inhibit the introduction of more flexible organizational forms in Danish companies.