DIGITAL TRANSFORMATION AND INNOVATION IN FOCUS: WHAT THE NEW LAW ON HIGHER EDUCATION BRINGS

The analysis shows that the proposed solutions represent a significant step forward towards modernization and alignment with European trends, but their effectiveness will depend on financial resources, institutional capacities, and practical implementation.

By Iskra Gerazova Mujchin

The analysis presents an overview of the draft law on higher education, focusing on its solutions related to digital transformation and the advancement of innovation, while at the same time making a comparison with the current legal framework. It aims to highlight the key novelties, assess their potential benefits, and point out certain challenges related to their practical implementation. Particular emphasis is placed on the extent to which the proposed legal provisions contribute to the modernization of higher education, its alignment with European trends, and the strengthening of the link between the academic community, the innovation ecosystem, and the labor market.

The draft law on higher education introduces a range of significant innovations that reflect the need to modernize the system and align it with European trends. For the first time, a clearer and more direct emphasis is placed on innovation, digitalization, and connection with the labor market, introducing more concrete and developed mechanisms for improving the quality, relevance, and competitiveness of higher education.

Within the fundamental principles of higher education, the principle “Research in line with the goals of innovation and technological development within the European Research Area” is introduced, representing an important step in the strategic positioning of higher education. This underlines the need for scientific research activity to be directly linked to innovation, technological development, and European priorities. This principle strengthens the orientation towards applicable knowledge, technology transfer, and cooperation with industry, while also encouraging the integration of domestic institutions into the European Research Area.

In terms of financing, the draft law brings significant improvement, particularly with regard to innovation. Unlike the previous legal solution, where costs for “investment and development” were broadly defined and imprecise, the new draft law introduces a clear and structured development component in financial planning. It explicitly provides for expenditures on innovation in teaching, scientific research and applied activities, modernization of study programs, development of new programs, and strengthening cooperation with the business sector. This represents a fundamental shift — from general financing to targeted investment in innovation activities. Innovation is no longer treated as an additional activity, but as an integral part of institutional development.

Additionally, the draft law foresees support for student innovation activities, incubators, and entrepreneurial programs, indicating a systemic approach to building an innovation ecosystem. However, the challenge remains how these provisions will be implemented in practice, especially in ensuring sufficient financial resources and institutional capacities. Clear mechanisms for monitoring outcomes and prioritizing investments are needed in order to ensure concrete and sustainable results.

Regarding digitalization, the draft law makes a clear step towards modernizing administrative and teaching processes. It introduces the possibility of issuing forms, certificates, and other documents in digital or printed format, which is a novelty and creates a foundation for the development of digital services. Additionally, it provides for maintaining student records in paper and/or electronic form, as well as establishing a central electronic system that will enable standardization and interconnection of institutions at the national level.

Digitalization is recognized for the first time as a distinct category of expenditure in financial planning, enabling systematic investment in digital infrastructure, ICT equipment, and online learning platforms. This approach indicates a comprehensive digital transformation linked to the quality of teaching, international cooperation, and student services. The success of these measures will depend on their real implementation, particularly in terms of the technical readiness of institutions, system interoperability, and data protection. Without adequate technical support, standards, and continuous investment, there is a risk that digitalization will be implemented unevenly, limiting its full effect on efficiency and service quality.

The draft law on higher education also strengthens the role of career centers, which are recognized as a key mechanism for connecting future higher-educated professionals with the labor market. The new legal provision represents a significant improvement compared to the previous one. There is a clear expansion of their function, which is no longer limited to alumni records and organizing fairs, but these centers are given an active role in organizing practical training and directly connecting students with the private and public sectors.

This significantly strengthens the link between higher education and the labor market, enabling better preparation of students for the real needs of companies and institutions. A particularly important advancement is the introduction of a legal obligation to establish working groups composed of representatives of technical faculties and chambers of commerce, as well as regular monthly meetings involving the Agency for Foreign Direct Investment.

This creates an institutionalized mechanism for continuous communication with the business sector, aimed at reducing the gap between labor supply and demand. A novelty is also the definition of the structure of these centers through the engagement of advisors with relevant expertise, contributing to their professionalization and quality of operation. Furthermore, the obligation to establish an alumni platform accessible to the competent ministry increases transparency, tracking of students’ career development, and the possibility of creating data-driven policies.

A challenge in this segment will be ensuring real and sustainable cooperation with the private sector, as well as the capacity of the centers themselves to effectively implement their expanded competencies. Without adequate resources, clear performance indicators, and continuous coordination between institutions and the business sector, there is a risk that some of the planned activities will remain formal rather than leading to a substantial reduction of the gap between education and the labor market.

There is a lack of clearer linkage between these centers and digital innovation hubs, startup ecosystems, and accelerators. Additionally, mechanisms for incentivizing academic staff should be further developed, such as: valuing industry collaboration, encouraging patents, spin-off companies, and the formal integration of European digital innovation hubs and other innovation structures. Further structured integration with the innovation ecosystem and the creation of platforms linking academia and industry will be crucial for achieving long-term and sustainable results.

Overall, the proposed solutions in this draft law represent a significant step forward compared to the current legal framework, particularly in the areas of innovation, digital transformation, and connection with the business sector. Their effectiveness will depend on practical implementation and the provision of appropriate resources and monitoring mechanisms. The foundations laid are solid and provide a clear direction for the further development of a modern, flexible, and market-oriented higher education system.

With consistent implementation, continuous improvement, and the involvement of all relevant stakeholders, these legal solutions have the potential to contribute to the creation of more competitive universities, a well-prepared and innovative workforce, as well as a more integrated and sustainable innovation ecosystem in the country.

This text was developed within the project “Representation for Inclusive Development,” financially supported by the Government of Switzerland through the Civica Mobilitas program.

The content of this text is the sole responsibility of the Forum for Reasonable Policies, IOHN, and BIRC and does not necessarily reflect the views of the Government of Switzerland, Civica Mobilitas, or its implementing organizations.