The deficiencies of the German higher education system are usually grouped under the headings of over-crowding and lengthy study periods. Federalism has indeed had important repercussions on the management of German higher education over the last fifty years. This chapter defines the boundaries of higher education in the Federal Republic of Germany, and the concepts of policy network and policy community. It illustrates show some elements of the chronic deficiencies in the German higher education system. Given this specific German state tradition in higher education, the focus of this study is on Hochschulpolitik in general, addressing policies affecting universities but also other higher education institutions. In the analysis of Hochschulpolitik, the chapter shows that many integrative mechanisms are due either to historical reasons or/and clear constitutional provisions. Interaction can be analysed in terms of integrative mechanisms within the policy network.