Norway’s predominately public and tuition-fee free tertiary education system encourages participation and has high attainment rates. However, challenges in spending efficiency, study times, skills demand, inclusiveness and quality remain. Also, learning outcomes could improve further. Moreover, few Norwegian universities rank high in international comparisons on the basis of research-related and other indicators, and spending per student or GDP is relatively high. Many small institutions, aiming to meet regional needs, do not reach critical mass in staff and student numbers. Many students take considerable time to finish their studies despite financial incentives, and students from lower income groups have low tertiary participation and completion rates despite a strong focus on inclusiveness. Enrolments remain low in fields such as science and engineering, although they have increased in recent years, and supply shortages in some professional areas indicate room for improvement. Better incentives for both students and institutions to ensure timely completions, with a special emphasis on disadvantaged students and labour market needs, a structure that paves the way for adequately sized institutions, and effective governance are essential for higher quality education and research. Effective monitoring of the outcomes is also vital. The government’s comprehensive quality-enhancing agenda, with a focus on these fronts, is welcome. This working paper relates to the 2016 OECD Economic Survey of Norway (www.oecd.org/eco/surveys/economic-survey-norway.htm).