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In the twenty-first century, knowledge-based economies require planned management of knowledge and, therefore, partnerships between the world of work and education will take on qualitatively different emphases. The United Kingdom Government has recognised this through various initiatives including the new Foundation degree. The authors place the concept of educational partnership at the heart of work-based learning, but as both the driver and the definer, rather than as a taken-for-granted assumption. Quality partnerships are seen as an important dimension in the development of learning organisations and of lifelong learning in higher education (HE). The article discusses the concept of quality in partnership, and considers educational principles and criteria that are important in identifying successful work-based learning as opposed to work-based learning per se. Quality work-based partnerships increase 'value-added' and are therefore important in shifting the predominant culture in business, from one of learning as a cost to one of learning as an investment in the future.