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The UK government is emphasising modern employee relations practices and partnership as central elements to a competitive strategy based on high skills. A key issue, therefore, is whether existing high skill industries in the UK are utilising these types of practices. This paper provides evidence from research carried out in the UK that the take-up of high involvement work systems has been limited in two high skills sectors - pharmaceuticals and civil aerospace. Following an examination of the reasons for such results, it is argued that government policy needs to address a broader range of issues, in particular the low levels of investment in research and development, job insecurity and the activities of multinational companies.