Higher education has grown and diversified in OECD countries in recent decades. The policies and practices that govern it are developed in a broader social and economic context which influences decision making. This Background Report is intended to provide a statistical and analytical background to support the discussions, based on the questions raised in the issues paper. It contains analysis, findings, description and data related to the topics to be discussed. These include the demographic and economic context; educational attainment and expenditure; employment; and research and innovation.