The generic skills needed for the new economy were identified through a review of research studies. First, the development of sets of key competencies/key skills in Great Britain, the United States, and Australia were examined. The U.S. model, which involves a broader, more flexible, and more holistic set of generic skills, was contrasted with the Anglo-Australian model, which has resulted in a more narrowly focused and instrumental set of key skills/key competencies that are broadly similar. Next, the implications of key contextual shifts for generic skills were considered. The following topics were discussed: the emergence of the new knowledge-based economy and the impact of new technologies; the consequent pressures for lifelong learning and maintaining employability; changes in the workplace; and initiatives to foster an enterprise culture and innovation. The following were among the key conclusions: (1) there is no international consensus regarding identification of the essential generic skills; (2) fostering generic skills requires active learning strategies in which learners assume responsibility for their own learning; and (3) direct and indirect evidence of the impact of generic skills on business performance exists. (Ten tables/figures/boxes and 95 references are included. A glossary and description of the Organisation for Economic Cooperation and Development's DeSeCo Program are appended.) (MN)