In the context of devolution, this paper argues that there is a distinctively Welsh flavour to FE and Skills policy, but that its nature and formation needs to be understood both intrinsically and relationally, especially in terms of its relationship to parallel policy developments in England. Consideration is given to structural aspects and significant changes in the 'economic narrative', and also to the reflection of certain values in policy and policy mechanisms. It is argued that policy learning of a sort visible in the realm of economic innovation is not yet apparent in the FE and Skills arena in Wales, where an avoidance of key features of English policy remains a touchstone. Finally, the paper sets out how a 'relational' approach is particularly helpful in appreciating these issues and in understanding the challenges in a major FE and Skills reform process in Wales.