This study focused on the critical intersection of workforce development and innovation engineering management within the Nevada System of Higher Education. The research problem centers on the lack of expertise in innovation engineering management roles when developing workforce development programs, contributing to a widening skills gap and the potential for significant economic consequences. The study is particularly relevant as it affects industry, government, and educational institutions, all of which rely on well-aligned workforce development programs to meet the evolving demands of the 21st-century workforce. The purpose of this quantitative correlational study was to investigate the relationship between the inability to apply specific knowledge within innovation engineering management roles and the resulting skills gap in Nevada's workforce development programs. The study was guided by the transformational innovation engineering framework and the Peter Principle, which together illustrate how misalignment in leadership, employee roles, and processes exacerbates the skills gap. Methodologically, the study employed a correlational design, with participants drawn from Nevada System of Higher Education and various industry sectors. Data collection involved surveys, and analysis focused on the alignment between economic needs and workforce development programs. The research questions explored the extent to which misalignment in IEM roles contributes to the skills gap and the effectiveness of current workforce development initiatives. The results indicated a significant correlation between the misalignment in Innovation engineering management roles and the widening skills gap, further exacerbated by the promotion of professionals beyond their competence. The study's findings underscore the need for T-shaped professionals and individuals with multidisciplinary expertise to address these challenges effectively. The study highlights the critical need for better alignment in workforce development programs and the full implementation of the transformational innovation engineering framework to mitigate the skills gap. The research suggests that future efforts should focus on developing multidisciplinary expertise within Innovation engineering management roles and improving the alignment between workforce programs and industry needs to prevent further economic losses. [The dissertation citations contained here are published with the permission of ProQuest LLC. Further reproduction is prohibited without permission. Copies of dissertations may be obtained by Telephone (800) 1-800-521-0600. Web page: http://bibliotheek.ehb.be:2222/en-US/products/dissertations/individuals.shtml.]