This article reviews the arguments and evidence on the role and contribution of the vocationally trained workforce and vocational training system in technical innovation. The primary focus in terms of the vocational workforce is on skilled production workers and, in particular, tradespersons and technicians. These occupations and the vocational training system are found to have a unique role and make a significant contribution to innovation in both production and Research and Development (R&D). The primary role of the VET system in innovation is technology diffusion. However, there are a number of impediments to achieving this role. These are sustained budget cuts and exclusion of the VET system from national innovation policy, programmes and advisory structures. The latter is attributed largely to the failure of the innovation studies discipline, which has strongly influenced government policy in this field, to study in detail the role of VET occupations and training system in the innovation process. This conclusion is paradoxical as the discipline’s own analysis of innovation makes a compelling case that these occupations and training system should be central agents in this process.