Summary: The main impetus for the interest in innovation is that it is seen to improve productivity at the firm level and therefore improved economic prosperity and living standards. This edited volume was commissioned by the Department of Employment, Education and Workplace Relations. The authors contribute a variety of views on innovation from different perspectives. Some of the main themes running throughout the book are reasons for firms innovating, the skills required for innovation and how innovation and skills development is supported by the training system, the firm and government. Innovation is seen as moving beyond research and development, to include new products, services and operational/organisational processes.