Education and training are central to innovative activities in highly developed economies and hence to economic growth. Empirical analyses at firm level show that the lack of qualified human resources is the most important barrier to innovation in economies at the technological frontier, much more so than the availability of external innovation financing. The role of education and training as enablers of innovation makes their potential contribution to growth dependent on other innovation determinants, such as the quality of the overall innovation system. Growth policies need to have a systemic view of education and training and how they relate to other policy areas and growth drivers: if Austria were to substantially increase R&D funding, then the education system would need to fill the demand for researchers and highly qualified workers. It is unclear how much vocational education and training impact on growth. However, if they make up a large share of the education system this certainly fosters specialisation in economic sectors which usually advance via incremental innovation rather than fundamental, science-based innovation. What is clearly growth-relevant is the overall quality of education and training. Some indicators show worrying trends for Austria. Reform of education and training should be a top priority at the moment.