Innovation, from high profile scientific discoveries to lower profile changes in processes or practices, is crucial to Australia's economic development. However, its impact on the wider community is usually relatively small. Promotion of innovation across all sectors is required to produce the biggest changes. This report focuses on the roles of the vocational education and training (VET) sectors of Finland and Singapore - countries with strong track records in innovation. It argues that a whole-of-government approach supporting a national innovation system could benefit Australia. Further, the national VET sector is ideally placed to have a more direct role in the promotion and diffusion of smaller scale innovations provided incentives in the form of specific funding are put in place. This activity could also enhance the sector's links with business, particularly small to medium sized enterprises and those in regional areas.
The importance of close connections between vocational education and training (VET) systems and industry is highlighted in this report. The report finds that any system of entry-level training, which aims to help students make a successful transition from school to work, must have support mechanisms and frameworks in place to enable accurate assessment of industry and labour market needs. From Australia's perspective, the Korean experience provides useful insights to improving school retention rates, and establishing formal pathways for VET students who are not undertaking apprenticeships and traineeships. From the Korean perspective, useful lessons include developing inter-sectoral linkages between industry and education, applying flexible teaching and training methods, implementing a national qualifications framework, and introducing apprenticeship-type arrangements.