The importance of regions to a more innovative development of the VET system in Germany based on recent research and practises is examined. Regional stakeholders (e.g. regional Länder governments/adminstrations, IAGs: Industrial Associations/Groupings, industry and VET colleges) see a need to make more use of local opportunities and resources. Regional decision making on VET means also to meet regional and local needs better, like better integration of work-place learning with systematic learning or new ways to combine initial VET with continuos forms of learning (Deitmer/ Gerds 2002, pp. 150). One possible consequence is to have an stronger formal and institutionalised regional VET innovation dialogue, which relates to the different vocational education and training institutions (regional industry, craft trade & service companies, VET colleges, VET teachers training, Universities etc.) in the region, by making use of specific set of research task and development instruments to coordinate cooperation on integrated work and learning task (Boreham 2004; Howe et.al. 2002; Kleiner et.al 2002). This can be linked to regional innovation in two respects. Firstly, VET dialogue and the associated intended improvement of vocational education and training can be regarded as an active focus for development of the ability of regions to innovate in both terms: structural and on strategies. Secondly, it conveys the idea that VET dialogue requires concerted action under the relevant institutions and persons, if it is to be integrated into regional development. Thus, there is a definite connection between ideas of a regional VET dialogue, a learning region and regional innovation networks (Attwell/Deitmer 1998). The needs to start from a regional perspective in VET policy making goes back to restructuring of the local/ regional industries and the formation of new business process chains between companies suppliers and customers. The work flow processes are changing and inducing new requirements for the occupational profiles, including a stronger service orientation and employability for skilled workers. Therefore the existing institutions of initial and continuing VET are forced to change and development. When these institutions want to play still an active role in VET policy than there is need for the identification of the competencies required locally. My reflections on these developments could show up what works and what is not working - based on quality oriented social research in model projects who try this regionalism and learning place co-operation, empirical results from recent studies/expert opinions (done for several German Länders) and the outcomes of several dialogue conferences in order to develop regional action plans and programmes (Deitmer/ Gerds 2002).