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This study examined the role of vocational education and training (VET) and occupations in innovative industries and firms. Innovative industries are those that have implemented technologically new or significantly improved products or processes. The three over-arching aims of the study were: (1) to provide detailed information on the distribution of skilled VET occupations in innovation intensive industries in Australia; (2) to provide information on employer, TAFE and private provider inputs to training for these groups of personnel in innovative industries; and (3) to highlight issues for policy-makers both in VET and within other portfolios relating to innovation at each major level of government in Australia. The methodology for the study involved a literature review, quantitative analysis and case studies. The broader literature on innovation and the case studies identified an interrelated set of factors which are strongly associated with high-innovation intensity. The factors include: large firm size; regular upgrading of capital equipment; strong linkages between producers and suppliers of capital equipment and other inputs; competition within the respective industries and product; well-functioning linkages between external research and educational institutions and firms; customers who require continuous product improvement from suppliers; regulatory requirements which allow for novel solutions in meeting prescribed standards; and high expenditure on training. A common element across all case studies is that training was seen as an essential element in the maintenance and growth of business, and flowed automatically from decisions regarding the pursuit of product and process improvements. An important finding is that most of the factors which were identified in the literature review as strongly stimulating innovation were also identified in the case studies as strongly stimulating training.