Trends in higher education (HE) in Scotland and elsewhere in the United Kingdom in the 1990s were reviewed, and possible policy directions for HE in the 21st century were explored. Special attention was paid to the following areas: features of HE institutions in the 21st century; the relationship between the state and HE institutions; curriculum development in support of learning for the workplace; flexible, open, and distance learning; technology and learning; the corporate university; and virtual education. The following were among the main conclusions reached: (1) HE policymakers and managers must base their policy decisions on forecasts of the skills needed in the workplace; (2) education providers must aim to bring equality of access to learning and encourage the state to fund installation of the infrastructure and new technologies needed to extend education to wider communities; and (3) policymakers and mangers wanting to provide their communities with wide, affordable access to learning must look to new technologies with the potential for mass education, including virtual universities based on the creation of partnerships offering courses and learning materials that have been developed by other institutions and subsequently awarding their own credits/degrees by assessing students' prior learning of the materials. (Contains 20 references.) (MN)