This article describes how higher education (HE) can contribute to the economic and social empowerment of young graduates, which will drive innovation and socio-economic devel-opment, and social and cultural change in Europe. We propose that the concept of compe-tence should be enriching with the integration of the professional, social, cultural and political aspects. We suggest that improving HE graduates’ competencies and capabilities will affect their self-perception and status, and increase their employability, income and wealth, life suc-cess, resources, mental and physical energy, and social relations and encourage engaged citi-zenship, all of which will shape individual living conditions.