Concentration of practical training in workshops serving a few schools is another way of lowering the cost of VET provision. Better co-ordination between different levels of government is a necessary condition to improve the planning of VET provision according to the principles presented below. Suppose, for example, that engineering skills drive innovation and economic growth in a manner which is very helpful to the economy but where the benefits are not captured in the wages of engineers. This would mean that the incentives to pursue engineering qualifications would be limited and there would be fewer VET engineering students than would be socially desirable.