Abstract This article proposes a new conceptualisation of skill formation within growth regimes that integrates a transnational dimension. Drawing on insights from global value chain and managed migration scholarships, skill formation can become a transnational effort coordinated by a dominant growth coalition sourcing skills for economic growth. Focusing on Germany as a least-likely case, this article finds an increase in policies and practices to transfer vocational education and training and manage labour migration, as part of a growth strategy to sustain export-led growth. A coalition of the state and employers supports this strategy, called ‘externalisation’, which unions, political parties, and foreign governments do not oppose. Through the study of externalisation, we advocate for a departure from methodological nationalism when studying growth in 21st-century political economies.