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Ireland was one of the first European countries to grasp the economic importance of education. But higher education in Ireland is now at a crossroads, with significant challenges to overcome. High levels of investment are needed for a major expansion of postgraduate studies and capacity for research, development and innovation. Mechanisms should be established to achieve the right balance between different components of the tertiary education system, which includes universities, institutes of technology and colleges that provide post-secondary level instruction. Further, there is a need to meet the demands of specialisation, competition and complementarities within the system. This report addresses the full range of higher education issues, offers recommendations for action within the framework of the government’s ambitions for the sector and suggests policy approaches to developing required additional sources of funding.