Australia's innovation capacity is, in part, reliant on its teaching workforce--to teach and promote new technologies to industry. This pilot study examines how vocational education and training (VET) teachers, in particular TAFE (technical and further education) teachers, maintain the currency of their skills and knowledge base. It also explores their role in the development and diffusion of innovative practices and new technologies in the manufacturing sector. Despite the lack of recognition of TAFE teachers in national innovation policies and programs, they do provide a technology diffusion function. However, there are impediments to maintaining the currency of teacher skills and equipment, including inadequate capital expenditure on equipment, an aging teaching workforce and reduced access to professional development and return-to-industry programs. Appended are: (1) Questionnaire for TAFE teachers; (2) Questionnaire for survey of companies; and (3) Industry association survey. (Contains 5 tables.)