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This book explores the capacity of the Danish innovation system to respond to key societal challenges including the green imperative of achieving growth with environmental sustainability and the need to adapt to new and possibly disruptive changes in technology, often referred to as the Fourth Industrial Revolution. The book is divided into four main parts. The first describes the evolving characteristics of the Danish system of research and innovation with special attention to the role of policy at the national and regional levels. The second part focuses on interorganisational relations, including the position of Danish firms in national and global value chains. The third part examines changes in labour markets and in the educational and training system, and it considers the impact of new technologies including robotics and artificial intelligence on employment and skills. The fourth part turns to issues of climate change and environmental sustainability including an assessment of the Danish economy's success in meeting the challenges of the UN Sustainable Development Goals. The book will be of particular interest to small countries, of which the Danish innovation system is representative, but it also appeals more broadly to an audience interested in innovation systems and policies to support economic development.