The VET sector is under pressure from the exponential increase in university places. This, on top of cutbacks to government funding over the last decade and a lack of clarity about VET's role now that it is squeezed between universities and schools, has led to a precarious position for the VET sector and the need to consider changes to traditional delivery. Establishing a viable place in Australia's tertiary education system will involve being able to strike a balance between creating and transferring knowledge, generating economic activity and helping to solve industry and societal problems. This guide suggests ways the vocational education and training (VET) sector can develop an applied research capability to help secure its place in Australia's innovation system. It is based on a project examining VET applied research, which also created a development framework for VET applied research capabilities. [For related reports: "Explaining the VET Applied Research Developmental Framework," see ED576657, and "VET Applied Research: Driving VET's Role in the Innovation System," see ED576660.]