This is the third in a series of four analytical reports prepared by the OECD Higher Education Policy Team on developing competencies in support of innovation for the digital and green transitions. These reports facilitate knowledge exchange within the Education and Innovation Practice Community (EIPC). The EIPC is an action of the European Commission (DG EAC), implemented in collaboration with the OECD under the New European Innovation Agenda, Flagship 4 "Fostering, attracting and retaining deep-tech talent".This analytical report provides analysis and case studies related to Strand 2 of the EIPC project, which focuses on how traditional higher education degree programmes can best develop competencies important for green and digital innovation. Four key areas of action are discussed:1. Tracking and assessing competencies: enhancing the capacity of higher education systems to track demand for and supply of competencies that support innovation, through improving anticipation and assessment methods.2. Curriculum development: updating educational programmes and curricula to ensure they target the necessary knowledge and skills for green and digital innovation, encompassing relevant transversal and discipline-specific competencies.3. Student engagement: increasing interest and motivation to develop competencies that contribute to innovation, which may involve improving incentives and greater attention to designing engaging learning experiences.4. Private sector partnerships: strengthening partnerships with innovative businesses and industries to align higher education provision with their human capital needs.For more information, contact the OECD Higher Education Policy Team