TIAC is providing the State Government with advice about optimising innovation aimed at strategically strengthening and diversifying the economy, and enhancing the cost effectiveness of Government services. Its work should therefore be framed at the sectoral level, rather than that at individual enterprise level, and this discussion of the role of advantages, and competencies follows that principle. Any consideration of advantages must differentiate between Comparative Advantage and Competitive Advantage, as discussed below. Similarly, consideration of competitive advantage, at the sectoral scale, needs to acknowledge the separate, but interlinked, contributions of Functional Competencies and Generic Competencies. The purpose of this note is to highlight the crucial, but under-recognised, role of generic competencies and to emphasise their potential to enhance innovation and the State’s competitive advantages.