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Geuna 1999). The combined outcome of both processes is an increasing differentiation between academically and financially stronger institutions and weaker institutions, and hence a growing vertical diversity in the overall European higher education system. The second unintended effect is a growing regional diversification in European higher education. This appears to be the outcome of three interrelated processes emerging from the EU research and innovation policies (Frenken et al. 2008). The first is the preference of researchers in “excellent regions” to collaborate with each other, rather than with colleagues in lagging regions.

World-class research infrastructures, accessible to all 3. Excellent research institutions engaged in public–private cooperation, involved in clusters and communities, and attracting human and financial resources 4. Effective knowledge sharing between the public and private sectors and with the public at large 5. Well-coordinated research programmes and priorities and 6. The opening of the ERA to the world (European Commission 2007) As with EU research policy, the EU treaties of the 1990s formed further important milestones for the higher education policy context.

2 Germany In Germany, we see a blurring of the boundaries between the Fachhochschulen and universities, because the former are – in the context of the Bologna process – now allowed to offer master’s programmes as well. This change is not extremely radical, because the Fachhochschulen were already supposed to carry out (practice-oriented) research in the pre-Bologna period. As a consequence, the doctorate degree was not uncommon among Fachhochschul staff. In addition, the access routes between the two institutional types were not that clearly demarcated: for some Fachhochschul programmes, the entry rates for Abitur holders were higher than for the universities (Witte 2006, p.

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