Design is increasingly being recognised as a key source of competitive advantage in the innovation economy of many countries. The key objective of this research was to understand the contribution by design graduates to creative industries innovative activities. Primary research was conducted to understand barriers and limitations of graduate contributions to such activities. The attributes and skills of graduates from the university and Vocational Education and Training sectors were the subject of the study. Two focus groups, one with the education sectors and the other with representatives from design firms, government institutions and design associations were held. Though each group of graduates was praised for having certain skill sets graduates from both sectors were found to be lacking in three key areas: problem solving, communication skills and commercial knowledge. A range of suggestions for systemic improvement were proposed as a result of the study.