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The new National Strategy for VET [vocational education and training]: 2004-2010 [indexed at TD/ANTA 73.11] seeks a VET system which both contributes to, and is able to respond effectively to, innovation. In a competitive global economy, pressure on organisations and enterprises of all kinds to become more innovative has reached new peaks. Innovation is playing a strengthening role in enabling enterprises to maintain and expand their market share and to enter new markets successfully. Innovation is also creating new industries - and re-shaping those that already exist. As a consequence of high levels of innovative activity, skill needs are changing. Previous studies (see Ferrier, Trood and Whittingham 2003) have shown that innovation requires skills - such as research skills to investigate new systems or tools, and management skills to produce and market them. In addition, innovation can create a need for new or different skills. When an industry adopts an innovation such as a new tool or process, some existing skills may become redundant and some new skills may be required. Occasionally an innovation will be so different from what it replaces that a completely new set of skills will be needed. If new and changed skill needs are to be met, appropriate training is essential. Moreover, if the skills are to be available as soon as they are needed this training must be provided in a timely fashion. Innovation thus creates pressure on those who develop and deliver this training - primarily vocational education and training systems.