This paper examines the role of vocational education and training (VET) in innovation by comparing the participation of VET-qualified employees with that of university graduates such as scientists and engineers. Using individual-level data from the German manufacturing sector, we distinguish between initial VET qualifications (acquired through dual apprenticeships) and higher VET qualifications (e.g. master craftsmen or technicians). The results show that university graduates dominate formal research and development (R&D) activities. However, VET-qualified employees–particularly those with higher VET qualifications–strongly participate in both the invention and implementation phases. Initial VET graduates are especially active in implementation, notably in introducing new machinery, equipment, and technologies. Higher VET graduates play a crucial bridging role between R&D and the shop floor, facilitating knowledge transfer across qualification groups. Participation patterns also vary by firm size, with larger firms displaying clearer task allocation and specialisation. Overall, the findings demonstrate that innovation in manufacturing relies on the complementary strengths of vocational and academic qualifications, which are rooted in their respective knowledge types and firm-level modes of learning and innovation. © 2025 Informa UK Limited, trading as Taylor & Francis Group.
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