With the reform and open-up, great developments have made in the higher education in China. The theory of higher education industry has become one of the heating focuses at research in the educational and economical circles. Higher education has developed into an industry on the basis of the theories of "productive labor of Marxism, human resources in the west and three industry classification". In the era of knowledge and economy, the theory of knowledge and economy has furthered the status and function of higher education as a prominent intellectual industry.This essay is in its first place to define the higher education as a unique industry through differentiating and analyzing the concept of educational industry and higher educational industry. Furthermore, it set forth the theory basis and policy foundation of higher education as an industry, investigate the development condition of higher educational industry in America and provide the methods we can make use of, make a thorough analysis of its present condition, opportunity, challenge and outlet,. Finally, it give a countermeasure suggestion on how to develop private-owned higher educational industry based on the practical and realistic analysis of the higher educational industry in China.
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