Abstract
Recent studies of the University of Oslo and Norwegian state colleges indicate ambivalence and scepticism among professors towards external expectations of more service orientation and applied research. Professors are not aware of the already-increasing competition and internationalisation of the higher education market. There is increased competition between public and private colleges, semi-public research institutes and foreign institutions on the one hand and traditional public research universities on the other. Who will be the winners? Will the state put pressure on all public institutions to balance their budgets based on their products' competitive strength in the market? In conclusion, it is claimed that the future 'winner institutions' are the ones able to produce and transmit innovative and relevant knowledge that can be competitive in the market. Such institutions are likely to have the best chances of finding a pragmatic balance between knowledge-based services relevant for the market and independent, innovative and critical research.
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