Relationship between innovation and flexibility in economy and their social consequences

Abstract

In this article, an attempt is made at showing how innovation influences flexibility in economy and inversely. In modern economy, flexibility is a necessity because it signifies that firms or companies are capable of changes. The changes are forced by changeable market conditions and firms or companies which want to compete with others must create a sort of an early warning system, and favourable conditions for quick changes. The enterprise must be capable of reaction. Innovations are very helpful tools, which effectively assist flexibility.The Author attempts to interpret the concept of flexibility and portrays the numerous contexts of this phenomenon. The meaning of flexibility is explained after Richard Sennett, who distinguishes three components: flexibility as a new style of power, which leads to creating institutions from the start, flexibility in specialization of production, and concentration of power without its centralization. For the present discussion, the most important are the social consequences of flexibility as a postulate of modern economy, and these are described in the article.