The Italian University after the Reform: where is it headed? This paper analyses the key role currently played in Italy by the university as an institution devoted to the production, accumulation and redistribution of knowledge and the radical changes that it has undergone in the last few years. It is this knowledge that constitutes the wealth of a society and the basis of its competitive advantage. Ministerial decree no. 509/99, setting the new regulatory framework for universities in Italy, leaves many questions unanswered. Should the Italian universities at the crossroads between innovation and continuity produce technicians or intellectuals? Should they focus on the requirements of the Italian economy or could they act in their own interest? Does the reform contribute to the improvement of the Italian education system? The aim of the article is to discuss these crucial factors affecting the transition process and its possible outcome.