2. Higher education policies in the Nordic Region –
a spatial perspective

Between 1960 and 1990, Nordic welfare states strategically expanded higher education into non-metropolitan areas. From the 1950s to the 1970s, existing universities extended their reach through branch campuses. In addition, entirely new institutions were established to improve regional access to education (Hedin, 2009). Over time, higher education institutions evolved from their traditional focus on teaching and research to become key players in regional development, innovation systems and global knowledge exchange, responding to evolving economic demands (Ahola et al., 2014; Etzkowitz & Leydesdorff, 2000; Lindqvist et al., 2012).

In tandem with that shift, neoliberal reforms transformed Nordic universities into more market-oriented models, emphasising competition, efficiency and alignment with business needs (Holmén & Ringarp, 2023). These changes increased institutional autonomy over curricula and admissions (Benner & Holmqvist, 2023), introduced performance-based funding tied to measurable outcomes, prioritised employability and fostered more flexible and collaborative governance structures (Fägerlind & Strömqvist, 2004).

Several decades after the strategic expansion of higher education into non-metropolitan regions, the question remains: is this goal still relevant today. And, if so, what are the parameters of success and are the strategic tools being implemented efficiently to achieve it? This chapter explores the higher education policy landscape in the Nordic countries, with a particular focus on how current national strategies incorporate a geographic or spatial dimension. It highlights key priorities and goals, examining whether and how these policies aim to support the distribution of educational opportunities beyond major urban areas.

Since 2021, the Danish parliament has pursued a policy of decentralising higher education institutions, relocating and downsizing study places in the four largest cities to offer improved learning opportunities for young people, regardless of where in Denmark they grew up (Uddannelses- og Forskningsministeriet, 2021). Through this initiative, Denmark aims to offer the same possibilities to study in small cities as there are in the four largest cities – Copenhagen, Århus, Odense and Ålborg. This change is being made amid concerns that an unequal distribution of education institutions hinders young people in rural areas from accessing higher education, thereby contributing to imbalances in the labour market dynamics (European Commission, 2021; Indenrigs- og Boligministeriet, 2021). 

In addition, Denmark's strategy places greater focus on the largest higher education programmes that train graduates for the welfare sector, such as teachers, nurses, pedagogues and social workers (Indenrigs- og Boligministeriet, 2021). One of the priorities is to create favourable conditions for recruitment of qualified welfare staff throughout Denmark. The strategy aims for 60% of the enrolment spots in the four major welfare programmes nationwide to be located outside of the four largest Danish cities by 2030 (European Commission, 2021; Indenrigs- og Boligministeriet, 2021). The initial plan involved creating 1,000 new educational spots in these fields outside the largest cities and relocating another 1,000 spots to more rural areas. The policy was later adjusted to remove the specific targets for new spots and the relocation requirement, allowing institutions to determine independently where to offer programmes within their area of geographical coverage (Uddannelses- og Forskningsministeriet, 2023).

The decentralisation efforts aim to encompass all types of higher education – university higher education, art schools, professional programmes, vocational schools and maritime educational programmes (Uddannelses- og Forskningsministeriet, 2021). The requirements are accompanied by economic incentives in the form of financial and investment support for educational institutions. Finally, the Danish government recently presented a planned education reform that introduces a new type of education for young people: the business and vocational upper secondary school (abbreviation in Danish:  epx) is intended to combine both theoretical and practical skills and allow for a more decentralised and broader selection of higher education options, including opportunities later in life (Børne- og Undervisningsministeriet, 2024). 

In 2017, Finland introduced its “Vision for Higher Education and Research in 2030”, focusing on expanding higher education attainment, strengthening universities' global and ethical roles and supporting innovation through inclusive systems (Ministry of Education and Culture, 2017). The vision was co-developed with institutions, students and stakeholders.

Between 2006 and 2018, Finland reduced the number of universities by six to improve the efficiency of public service provision and enhance global competitiveness through larger institutions (OECD, 2022). At the same time, Finland committed itself to improving access to higher education by ensuring the presence of at least one institution in every county. This apparent tension between consolidation and accessibility was resolved by establishing a nationwide network of satellite campuses, university centres and universities of applied sciences (OECD, 2022).

To further address higher education accessibility, Finland drew up an Accessibility Plan in 2021, which now forms part of the Government Programme. Embedding greater geographical and inclusive accessibility within the University Act, it requires higher education institutions to develop their own accessibility plans (Kosunen, 2021). The analysis under the Accessibility Plan highlights the role of universities of applied sciences in improving access across all regions (Kosunen, 2021).

According to the OECD (2022), variation can be observed between regions and municipalities regarding vocational training and higher education more broadly. Greater efforts are needed to identify labour market needs and to align vocational education accordingly. Opportunities to pursue vocational training should be strengthened. Remote learning forms part of the solution and represents a larger strategy but cannot be the only tool (Kosunen, 2021; OECD, 2022).    

Åland Islands is an autonomous self-governing region of Finland, situated in the Baltic Sea between Sweden and Finland. Its only higher education institution, Åland University of Applied Sciences (Högskolan på Åland), is located in its capital, Mariehamn. As per the Act on the Autonomy of Åland, the region has legislative powers in several areas, including education, allowing it to regulate Högskolan på Åland independently (Åland Parliament, 1991). Accordingly, although Åland is officially part of Finland, in practice it is not legally bound by Finnish education laws (Högskolan på Åland, n.d.-b).

Higher education in Åland Islands is also financed by the regional government of Åland (Ålands landskapsregering, 2024). The allocated resources, performance, business structure and reporting are coordinated through education agreements concluded with the regional government every four years. Unlike in mainland Finland, where Finnish and Swedish are the official languages, the primary languages of instruction at Högskolan på Åland are Swedish and English, as specified in the University of Applied Sciences Act for Åland (Ålands landskapsregering, 2024).

Åland’s autonomy extends to its educational strategy, granting Högskolan på Åland significant influence over broader education policies in the region. For instance, the university’s strategy addresses issues such as accessibility, including campus access and the availability of a digital learning material database (Högskolan på Åland, 2022).

The Iceland Education Policy 2030 was published in 2020, outlining the country’s education strategy for development of the education system over the next decade (Mennta- og barnamálaráðuneytið, 2022; Ministry of Education and Children’s Affairs, 2020). The strategy, which is divided into three action plans,

The action plans are divided into three time periods – 2021-2024, 2024-2027 and 2027-2030 (to be published).

describes five pillars aimed at ensuring high-quality lifelong education (Stjórnarráð Íslands, n.d.).

The first pillar reflects the commitment to equity, strengthening vocational education and training while bridging the rural-urban divide (Ministry of Education and Children’s Affairs, 2020). The education policy focuses, among other things, on ensuring education throughout Iceland by improving the availability of education outside urban centres through improved transport and technology, alongside the development of vocational and technical training (Ministry of Education and Children’s Affairs, 2020). The guiding principle of this focus area is that people’s educational opportunities should not be determined by their place of residence. Due to vast distances, remote teaching has been used as a strategy to ensure equal access to higher education for those living outside of Reykjavik or Akureyri. Remote learning has also enabled older students to pursue their studies alongside their work or other responsibilities (Jóhannesson et al., 2021). Nevertheless, the education policy does not set out concrete strategies and steps to address the rural-urban divide in education.

The remaining pillars of the Iceland Education Policy 2030 focus on improving teaching, addressing future skill needs, promoting student well-being and ensuring a high-quality education system. For instance, the third pillar aims to strengthen Vocational Education and Training (VET) in response to increasing labour market mismatches. However, an OECD report notes that Iceland only acknowledges low awareness of VET, but does not present a systematic approach to identifying skill shortages (Iceland Education Policy 2030 and Its Implementation, 2021).

The 2015 structural reform in Norway introduced significant changes to the higher education sector, including institutional mergers and greater institutional autonomy, with the aim of improving quality and efficiency (European Commission, 2016; Vukasovic, 2022).

Since taking office in 2021, the current government has emphasised decentralised education, flexible learning and local access to study opportunities. The government’s cooperation platform, the Hurdal Platform, outlines plans to strengthen regional presence by setting clearer national requirements for universities and colleges (The Prime Minister’s Office, 2021). The goal is to strengthen decentralised provision and meet regional competence needs. It also proposes launching a reform to promote decentralised education, including the establishment of local education centres, primarily owned by counties or developed in cooperation with existing institutions (Hystad, 2024c).

This commitment is reinforced in White Paper Meld. St. 27 (2022-2023), which calls for flexible, decentralised education to improve access to skills and meet labour demands across regions (Ministry of Local Government and Regional Development, 2023).

To support these objectives, the government aims to change and simplify the funding system for universities and colleges, enabling institutions to fulfil their broad societal mission better, align with government priorities and enhance overall quality. The government has allocated NOK 460 million to qualification and apprenticeship efforts. Through the Social Contract for More Apprenticeships, collaboration between social partners, county authorities and national agencies aims to boost local apprenticeship opportunities (Ministry of Local Government and Regional Development, 2023).

In 2023, NOK 200 million was allocated to two programmes supporting locally delivered and flexible education (Hystad, 2023):

Likewise in 2023, the government proposed transferring the authority to close campuses from university boards to the state, partly in response to the controversial closure of the Nesna campus in 2019, as discussed in section 4.5 (The Ministry of Education and Research, 2023b). The proposal argues that campus closures have broad social and economic implications and should therefore be subject to political accountability. However, the reform has faced strong opposition for undermining institutional autonomy and trust-based governance (Larsen & Arnesen, 2023).

Sweden implemented a major higher education reform as early as 1977, leading to the establishment of 12 new university colleges across the country to counter education-related outmigration. However, due to the transition period, the distribution of students did not change until 1987 (Andersson et al., 2004). This reform was followed by population growth in the municipalities where it was introduced. Additionally, it contributed to an increase in rural higher education attainment, including among individuals whose parents do not have an academic background (Bergh et al., 2024).

Differences between old and newly established institutions were significant, with the latter receiving significantly less funding for research (Haley, 2020). Recently, the Swedish authorities called for an increase in online and hybrid education to counteract outmigration further. Despite a rise in the numbers of online students, the difference is still not significant as the number of digital programmes available remains limited. It appears that students continue to move to urban centres to pursue their higher education (Haley, 2020).

The government's STEM strategy aims to strengthen STEM education and increase the share of students enrolled in science and technology programmes to 25% by 2035. While it acknowledges the national need for STEM competence, the strategy primarily focuses on social and demographic diversity – such as gender and socioeconomic background – and does not directly address geographic or spatial disparities (Regeringskansliet, 2025).

Since its launch in 2009, higher vocational education (yrkeshögskolan) has undergone significant expansion. According to  SOU (2023) ‘The Inquiry on the Future of Higher Vocational Education’, the number of available study places has doubled, and the range of programmes and formats has broadened. While the geographical spread of higher vocational education has increased, the report notes ongoing challenges related to programme location—especially for capital-intensive fields and under system changes like extended approval timelines. Longer decision-making periods may concentrate programmes in metropolitan areas, benefiting a few large providers and reducing regional distribution. Likewise, stricter entry criteria could reduce the diversity of providers and, consequently, the regional spread. 

The report emphasizes that programme approvals should remain guided by labour market needs, not geography. However, it highlights the potential of shared educational environments—such as collaborations with universities or learning centres—to enable cost-sharing, broaden regional access, and support training for essential societal roles, particularly those currently offered at only one location in the country (SOU, 2023).