The purpose of this paper is to determine the extent of major structural differences in European higher education and to analyze a number of recent developments within this institutional framework. One of the major changes occurring in European universities since their beginnings in Bologna and Paris has been the elevation of the research function to a primary role. The paper first traces the conceptual origins of this function in Germany, and then compares it with two major historical modifications of that model, the English and American ones. The paper then goes on to present a classification model of tertiary education in Europe for further descriptive and analytical purposes. This is followed by some theoretical considerations of problems which occur in the analysis of processes of institutional diversification. Finally, the paper highlights some of the actual developments and modifications which can be observed in the European systems of higher education in the areas of diversification, efficiency, and access. The paper concludes by noting that the functional approach to the classification of university models is useful for the understanding not only of the flagships of European higher education, i.e., the universities themselves, but also for a differentiated analysis of institutional variations as well as historical and political developments occurring in relation to European systems of higher education. Contains an 89-item bibliography. (GLR)