This paper is based on the project Building Bridges Between Higher Education (HE) and Employment: Learning from Practically-Based HE. The paper explores the complexities of fostering graduate employability, a key concern of HEIs both in the UK and internationally (Kornelakis and Petrakaki, 2020; Koseda et al, 2025). There is increasing emphasis on preparing young people for the workforce by equipping them with the skills needed in the modern labour market to enhance their employability and long-term career prospects (Robson, 2023; Cranmer, 2006; Prokou, 2008). Our research question is: How the inclusive use of innovation and diversification in higher education facilitate work-related learning, employability and sustainability for the HE students? A qualitative methodology was employed, focusing on case studies from two HE institutions in England. Data were collected through twenty semi-structured interviews with a range of stakeholders, including university staff and students. Our findings highlight that key stakeholders - university staff, industry representatives, and students - are actively engaged in the co-creation of unique learning spaces within higher education. These spaces form new environments that bridge academic and practical (work-related) domains. The study reveals that integrating theoretical learning, practical experience, and employer engagement requires continuous boundary-crossing across intermediary spaces where education and work intersect. This process is underpinned by innovation, diversification, and the development of new approaches to new technologies. Although this paper focuses on research conducted in England, it also considers aspects of graduate employability relevant across the broader ASEM countries. It contributes to the multinational research project by highlighting the global implications of the topic.

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