... competitiveness which emphasise skills, including high-level skills, as the crucial source of sustainable competitive advantage for the future. Nor is it only in this country that governments have embraced New Growth Theories - whether explicitly, or implicitly by relying on expanding higher education in order to drive economic growth. Despite the evidence of a rough balance between graduate supply and demand, based on existing trends, there is a strong and widespread belief that an increasing number of graduates, and thereby an increase in the nation's human capital, will lead to increased productivity and therefore economic growth. New Growth Theories make the case that education policy can impact economic growth in a decisive way. The key contention of New Growth Theories is that a more highly skilled worker is a more productive worker. The logic of the argument is then very appealing. An increase in skills produces an increase in productivity, ...

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