The effective use of a skilled workforce is necessary for a well-functioning science, technology and innovation (STI) system. The policy challenges in ensuring an adequate mix of skills for innovation are likely to vary by country. First, the range of skills for innovation ranges from S&T capabilities to skills such as management, communication and entrepreneurship. Second, the type of skills required varies widely across industries and firm size (Toner, 2009). Third, the optimal mix of skills varies over time – in many countries computerisation and globalisation have contributed to large changes in labour demand, for instance in professions that require more abstract, cognitive skills (OECD, 2010a). Lifelong learning is therefore an essential part of both reacting to and fostering innovation. While education policies mainly support the supply of skills for innovation (see the policy profile on “Strengthening education and skills for innovation”), labour market policies aim to raise the level of knowledge and skills effectively used by the labour force.