There is increasing global competition for better product and process functionality, higher quality, lower costs, and other considerations including energy and environmental challenges. This trend requires that Canadian industry be more innovative and responsive in order to stay competitive internationally. The Canadian capability in Engineering Design is at the core of our ability to achieve this goal. At both the undergraduate and graduate levels, we must improve the capability and capacity of engineering graduates so that they are capable of leading innovation, and converting research results into value-added products and services. This paper addresses the engineering design competency, identifies needs in engineering design training, and describes directions for the design content in engineering education programs.