The relationship between higher education institutions and their environment has changed markedly during the last two decades. Massification and diversification of the higher education system, economic globalisation, novel modes of knowledge production, new professional requirements and the establishment of new vocational higher education systems in many countries have challenged higher education institutions to develop new forms of collaboration with working life. The new situation also challenges higher education to develop pedagogical and educational thinking and practices. The purpose of this article is to examine the pedagogical aspects of the increasing interaction and collaboration that is taking place between higher education and working life and to outline what kind of challenges it poses for research on higher education. It is emphasised that from the pedagogical viewpoint integration between theory and practice in work-based learning is essential. Our general conclusion is that the relationship between higher education and working life should be examined at least from four different perspectives: (1) from the viewpoint of student learning and the development of expertise, (2) from the viewpoint of educational institutions and staff, (3) from the viewpoint of working life organisations and employers, and (4) from the viewpoint of society and the system of education.
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