Why are particular communities performing economically better in knowledge economies? Under conditions of intense global competition and complexity it seems that better performing communities enable their members to cultivate human talent: they enable their members to learn. This allows these learning communities to shift resources out of low-wage activities into higher value adding activities, thus providing continued prosperity. The basis of this seems to be a capacity to develop a competitive edge through the application of advanced technology, knowledge and service. From an employment perspective, there is a dangerous mismatch between what the knowledge economy needs of higher education and the "competences" the latter delivers. Lifelong learning provides a paradigm shift to "learning activity undertaken throughout life, with the aim of improving knowledge, skills and competence, within a personal, civic, social and/or employment-related perspective". It provides higher education with the imagination to perceive its future anew, with an engagement to redefine itself in alignment with agile learning communities. It enables learning communities, of which higher education is an integral part, to perform economically better.