Lifelong learning in vocational education: A game-theoretical exploration of innovation, entrepreneurial spirit, and strategic challenges

Lifelong learning within vocational education significantly influences innovation and entrepreneurship decisions. This is particularly pivotal in developing countries where bridging the gap between entrepreneurial talent demands and the supply from vocational institutions is vital. This study develops a tailored game-theoretic model to examine the interactions between government, entrepreneurs, and vocational education providers. It delves into how lifelong learning shapes entrepreneurial strategies, emphasising institutional innovations by the government and adaptability in enterprises. The model suggests that governments provide lifelong learning policies and support, entrepreneurs adjust their needs strategies in response to business developments, and vocational education institutions deliver skill enhancement programmes. The methodology encompasses analysing how lifelong learning initiatives impact entrepreneurial decisions, risk-taking behaviour, and innovative potential. The study's findings reveal that lifelong learning lowers entry barriers, augments adaptability, and fosters innovation. However, it may also lead to heightened risk aversion, slower decision-making, and overreliance on external support, potentially hindering bold innovation. To mitigate these challenges, governments should devise lifelong learning support schemes that foster innovation and risk management. This study contributes theoretical insights for possible latecomer advantages in developing countries.