Within the context of a discussion of the challenges facing Canadian higher education, this paper reviews some of the innovative approaches to student retention, curriculum development, and modularization in use at Mohawk College in Ontario. After stressing the need for innovation in advanced technological education in Canada, the paper offers an overview of the effects of new technologies on employment and employers' needs for workers skilled in reading, mathematics, problem solving, and interpersonal relations. Next, economic challenges facing Canada are examined, highlighting the country's poor record in the development and adoption of new technology, international trade imbalances, and changes in student characteristics that complicate the task of developing human resources through education. Arguing against current educational models that parallel the competitive nature of the business world, the paper advocates cooperation among and between students and faculty. The next section briefly describes some innovative practices used in Mohawk College's new, modularized two-year program in systems analysis/design and programming languages, including: (1) an emphasis on students' problem-solving and writing skills; (2) course assignments that promote active learning and student responsibility for learning; (3) assignments that force students to produce original work and discourage cheating; and (4) the use of student teams in large systems analysis/design projects. A sample course assignment is described. Finally, the paper stresses the importance of continuing innovation in Canadian higher education. Twenty-three endnotes are attached. (VVC)