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Updating knowledge and professional skills regularly is needed to adapt to the requirements of the economy and the labour market. Lifelong learning has therefore become essential and is a priority in Europe and the neighbouring countries of the enlarged Europe. This conference, organised by the European Training Foundation in Turin on November 4th, 2003, provided for the exchange of experiences and good practices in the field of innovation in training systems. Its purpose was to illuminate current developments in vocational training in the countries on Europe's southern and eastern Mediterranean borders (Algeria, Tunisia, Morocco, Egypt, Lebanon, Syria, Jordan, Israel, Palestine and Turkey) and to promote cooperation in this field. Positive results from projects supported by the Leonardo da Vinci program, and other national initiatives in this field, provided the basis for the conference. Discussions were conducted around four themes: (1) training and enterprises: how to ensure that training provided is attuned to the needs of enterprises, in particular of small and medium enterprises (SMEs); (2) quality in vocational education and training, quality management and quality control systems; (3) eLearning: virtual learning methods; and (4) training teachers and trainers. This conference report provides a synthesis of debates around these themes, the keynote speeches and the presentations from each theme. A list of participants is included.