In the early 1990s, the Finnish government embarked on a strategy to remold Finland into a knowledge society. A key element in this strategy was to raise the knowledge and skill levels of the population by doubling higher education enrollments by the end of the century. Recognizing that it would be neither affordable nor desirable to double traditional university enrollments, the government created a new sector of higher education with a different content, degree structure, and governance, the polytechnics ("Ammattikorkeakolut"). Findings from this study, conducted by a team of experts using a variety of data sources, suggest that the strategy is likely to be successful. The polytechnic sector is highly regarded and currently enrolls three-fifths of students entering higher education. The examiners raise some issues related to fees and examine the strategies for internationalization of higher education. Issues of governance and accountability are explored, and some suggestions are offered to strengthen the new system. (Contains 28 tables, 27 figures, and 38 references.) (SLD)