From shop floors to breakthroughs: Is vocational education good for innovation?

The fundamental impact of human capital on innovative performance is an undisputed finding in the innovation literature. Universities play a pivotal role in fuelling innovation across various industries, providing students with essential knowledge and skills to generate new products, processes, and business models. However, while universities undeniably play a crucial role, it is essential to recognise that human capital formation is a complex and multifaceted phenomenon, which is influenced not only by factors such as institutional context and culture but also by the secondary education systems. Since 1999, the Bologna Process has promoted numerous reforms aimed at ensuring comparability in the standards and quality of higher education qualifications in Europe. In contrast, secondary school systems still vary significantly from country to country. One of the most striking differences concerns the relevance attributed to vocational training programmes. Vocational training plays a crucial role in preparing students for specific careers and industries, focusing on developing practical skills and knowledge directly applicable to the workplace. This paper analyses the impact of secondary school education on innovation performance in European regions. It is based on the idea that, despite the common belief that innovation requires academically educated workers, vocational education and training can drive the innovation performance of economies. We investigate Eurostat and European Commission Cohesion Data for the last two programming periods and determine the extent to which secondary school systems and EC policy, specifically the European Social Fund theme on Educational & Vocational Training, can contribute to innovation performance in European regions.