Countries with a strong emphasis on vocational education in their education and innovation systems, such as Germany and Switzerland, have been among the most innovative ones for years. At the same time, international innovation research argues that a large percentage of academic graduates (rather than vocational education graduates) is indispensable for strong innovation performance. How can this contradiction be explained? In this survey, Uschi Backes-Gellner and Patrick Lehnert review the latest research findings to show why German-speaking countries are highly innovative not in spite but because of their strong vocational education systems. Necessary institutional framework conditions for this effect include the future-oriented design and updating of vocational training curricula, the teaching of broad vocational (rather than narrow firm-specific) skills in dual vocational education and training programs, a permeable education system with attractive career paths, and a link between tertiary vocational education and applied research. © The Author(s), 2023.
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