This volume focuses on the recent lessons of experience with reform and innovation in higher education that are most relevant to the challenges of developing countries. These lessons are explored in a series of twelve papers which analyze experience and issues in four priority areas. The first examines the relationship between higher education and development in a global environment in which economic growth is expected to be driven increasingly by scientific and technological innovation. To meet this development challenge effectively, systems of higher education will need to have a solid financial basis, and the second priority area is the examination of the options for reform in higher education financing. Yet, as essential as financial reforms, are reforms in management and government. This implies changes in the relationship between the Government and institutions of higher education. The third part examines these evolving relationships and implies that the mechanisms and indicators will need to be developed to more effectively monitor the performance of institutions of higher education. The final section reviews recent trends in this area and the book concludes with a case study of the effects of the implementation of a comprehensive reform in Chile including many of the reform policies advocated, and a proposal of the central options for policy reform and innovation in higher education.