Europe's prosperity and social model depend on its ability to ride the new wave of innovation ahead of us, while ensuring a broad participation in the benefits accruing from these innovations. This ability to benefit from innovation depends on access to relevant skills, which is one of the main determinants of Europe's competitiveness and the capacity to drive innovation. The fundamental link between innovation, skills and growth makes investment in skills and proactive skills policies, aligned to the evolving industrial and technological landscape, a prerequisite for a dynamic and inclusive society.

This paper looks in particular at the potential of education and training for skills upgrading, innovation adoption and thus, in a long-term, increasing economic growth and reducing inequalities. The analysis takes into account wide range of issues, such as the structural change of economies, developments of productivity and innovation as well as employment shifts in labour markets, while considering also the effects of policies and investments.