Description: The Finnish VET system was strongly school-based until 2001, when systematically organised workplace learning periods were introduced. The implementation of on-the-job learning has challenged educational establishments and workplaces to develop close links, collaboration and action networks, and, thus, to learn as organisations. The purpose of the study was to look at networking between organisations of working life and providers of vocational education and training. A particular aim of the study was to examine whether cooperation of this kind generates innovative practices and leads to functioning networks with knowledge-creation capacity. Can these networks be characterised as "innovative knowledge communities" (Hakkarainen et al. 2004; Hytönen & Tynjälä 2005)? The study was carried out in Central Finland, where education providers have put a great deal of effort into promoting cooperation between education and the world of work and enhancing students' workplace learning. The data were collected by surveying and interviewing students (N=1072), teachers (N=330), workplace trainers (N=420), and project leaders and other key actors (N=28) and analysed using both qualitative and quantitative methods (Tynjälä, Nikkanen, Volanen & Valkonen, 2005). The results of the study indicate that both in the educational establishments and in the work organisations, work practices and the work climate were propitious for innovativeness. However, the practices of working-life organisations were more conducive to innovative knowledge communities than those in VET institutions. A model describing the creation and dissemination of innovations will be presented.