Over the last 2 decades employability has worldwide become a key item on the public agenda due to changing labour market requirements and changing career perspectives. This has sparked a strong debate around Higher Educational Institutions’(HEIs) fitness for purpose whereby providers of Higher Education (HE) have been subject to accountability pressures from societal and economic stakeholders alike. Aside of a perhaps required re-alignment of the HE proposition HEIs provide with the knowledge economy, a larger question arises how a HEI can position itself in a competitive and sustainable manner in the 21st century Knowledge Society as a value adding entity in this knowledge system. The pertinently growing attention by national and supranational governmental organizations around access to information and knowledge for all undoubtedly impacts the role of HE in this emergent Knowledge Society. This paper aims to explore the proposition of a conceptual framework for sustainable and competitive positioning of a HEI in light of the changed realities the 21st Century economy has brought forward. The argument made in this paper uses notions of ecosystems, networking and knowledge flow as underpinning theoretical concepts. Particular focus will be drawn to the value and necessity of relationship development and maintenance by HEI’s with their stakeholders in order to be appropriately responsive to the highly dynamic context in which they operate with they eye on short and long term competitiveness and sustainability inclusive of consideration to the social responsibility HE holds in its “raison d’être”. The paper presents a holistic system view of the Knowledge Society catalyzed by HE and highlights embedded interconnected entities interacting and transforming in a dynamic environment. The framework attempts to indicate the potential value of employability as a key-and perhaps the number one-focus for a HEI for the next decades to come for purposeful cultivation of and engagement in synergistic relationships with external stakeholders. This paper aims to spark discussions and research around the development of appropriate society wide knowledge networks catalysed by HEIs as engines for the development of human capital of the 21st Century.