In a number of European countries, the recognition of the university's key role in the evolution of the knowledge society--and in the identification and solving of political, socioeconomic, environmental, and cultural problems--has led to radical reforms of higher education systems. Denmark has implemented the most radical reforms of the region in terms of governance and management of institutions as well as strategic selection of activities. With the new reforms, Denmark is at the forefront of Europe in its use of university research policy to achieve the objectives of the Lisbon strategy. In the Danish context, the issue of individual academic autonomy and freedom in teaching and research has been neglected, with the focus now on institutional autonomy. The apparent shift from individual to institutional autonomy provides more flexibility for universities to set strategic objectives. At the same time, universities become more open to societal demands. The government, although it is the driving force of changes implementing the Lisbon strategy, is hence not the only actor in the new developments. Other stakeholders such as the industry are vigorously promoting their interests. Yet pressures on the academic staff are unprecedented and significant change will inevitably occur. The key issue is to define the role of the university in the emerging knowledge-based society and to establish the balance among individual academic freedom, institutional autonomy, and accountability to external stakeholders. (Contains 4 notes.)