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Abstract
The Danish higher education system was until recent years characterized by local diversity. It comprised, in relation to the population size, a large number of rather small institutions and a large number of universities and other research institutions. Since 1990, the Danish higher education system has changed dramatically: The number of institutions has been drastically reduced, mainly through mergers, and the governance and management of the universities has been changed with the implementation of the University Act of 2003. The transformation of the system is in progress and a new funding system is expected to be introduced in the near future.