This report presents innovative vocational training (VT) initiatives to improve integration of low-skilled workers into lifelong learning and the labor market. Chapter 1 describes study structure and methodology. Chapter 2 addresses the theoretical basis for observing innovations. It analyzes the definition and significance of innovation in system theory and VT; examines the practical definition of innovation and explains differences between good practice and best practice innovation; presents the innovation typology and its significance as an instrument of observation for identifying and evaluating innovations; and introduces the European Commission's definition of lifelong learning and assessment of its relevance for analyzing innovations for integrating the low-skilled. Chapter 3 analyzes innovative case studies with practical relevance for integrating low-skilled workers into lifelong learning and the labor market in these six European countries: Spain, Greece, Austria, Denmark, Luxembourg, and Liechtenstein. Case analysis is divided into three thematic areas: program/project development and its objectives; innovative elements of the project/program; and the initiative's implementation and transfer potential. Chapter 4 summarizes the most important innovations identified and analyzes to what extent and under which circumstances transfer of these innovative practices to other EU states and candidates would be possible. (Contains 72 references) (YLB)