Public debate on higher education reform today is dominated by competing views about what higher education institutions, particularly universities, are or should become. To a surprising extent, these views are based upon highly simplified characterisations of university history. The claims in question have been repeated so often that they have become cliches. Historical research has challenged all these conventional claims. The article aims to acquaint readers with the most important of these challenging results. Central here is an analysis of The Humboldt Myth about the rise of the modern research university in Germany and its alleged export to the US, and of the reasons why that myth remains so powerful, even though it has very little relation to realities on the ground. A second goal is to try to bring out some of the implications that a revision of standard views of higher education history might have for current policy debates, focusing in particular on the Bologna process.