“…Although some pilot projects of global budgets were launched in the early nineties (Jensen & Neuvians, 1994), the deregulation and autonomy of universities on a large scale had been mainly put in place by 1998. Globalization, shifting demographics, the changes in the production regime towards knowledge-intensive work, growing competition from the private higher-education sector, and ongoing fiscal constraints have been drivers for the world-wide institutional change in higher education (Høstaker & Vabø, 2005;Sporn, 2001;Subotzky, 1999). Since Europe intends to become the "most competitive and dynamic knowledge-based economy" (Council, 2000), Germany's higher-education system was demandedto become more effective in producing useful knowledge and skilled labor to support the necessary innovations at company, regional, and national level (Warning, 2007).…”