OECD Innovation Strategy calls upon all sectors in the economy and society to innovate in order to foster productivity, growth and well-being. Education systems are critically important for innovation through the development of skills that nurture new ideas and technologies. However, whereas digital technologies are profoundly changing the way we work, communicate and enjoy ourselves, the world of education and learning is not yet going through the same technology-driven innovation process as other sectors. This report served as the background report to the second Global Education Industry Summit which was held on 26-27 September 2016. It€discusses the available evidence on innovation in education, the impact of digital technologies on teaching and learning, the role of digital skills and the role of educational industries in the process of innovation. The report argues for smarter policies, involving all stakeholders, for innovation in education.