Today, Europe is a wealthy continent. But tomorrow, it could be much poorer. An unfavourable demographic development, the high price of labour, and relentless competition from old and new competitors threaten Europe’s comfortable position. To counterbalance these dangers, Europe has adopted the Lisbon Strategy. It sets Europe the aim of becoming a world leader in innovation and knowledge creation. Alongside with other knowledge producers, universities and other higher education institutions thus have a key role in making the Lisbon Strategy work. However, in their present state, Europe’s universities are ill-equipped to become innovation engines. In order to play this role, they themselves need to change. They need more funds than they have today, they need better governance structures, and they must enhance their global appeal. These issues – governance, funding and international attractiveness of Europe’s universities – are key concerns of this book.  The volume also depicts the main outlines of the Lisbon Strategy.  Most of the contributions in this volume are based on presentations delivered at the ACA conference The future of the university, held in Vienna in December 2005.