Abstract
This paper outlines the new global environment in which higher education institutions (HEIs) now have to operate. The author considers the threats and opportunities for institutions in Europe and discusses various strategic actions that need to be taken if the region's HEIs are to sustain their quality and increase their competitiveness. He suggests that structural changes, such as internationalization, the integration of new technologies and the ability to diversify, are essential for their survival. He argues too that there are lessons to be drawn from the responses of the banking sector to significant changes in the markets it serves. Finally, the author considers in more detail two of the key issues that European HEIs need to address – those of academic autonomy and collaboration with other HEIs and other organizations. The paper concludes that, to respond to the changing requirements of their ‘consumers’, HEIs must increase the transparency and accessibility of their programmes and, while protecting the essential principles of education, enhance and stress their market advantages.
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