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A new paradigm for economic development of higher educational institutions of Ukraine requires appropriate institutional support. The reality of domestic transients is the imperfection of institutions, which corresponds to the mixed economy of market type and adequately represents the norms and stereotypes of behavior in the spheres of income distribution regulation, employment, social security, health, education. The purpose of the paper is to study the role of educational production as a determining factor in economic development of society. Methodology. In the researching process general scientific and special methods of the studying processes and facts were used in their correlation and development. Among them: monographic - in the forming of the research subject and object; induction and deduction - in the determining of the means, objects of the labour and factor of educational production; the method of the systematic studying the business processes - in the determining of the interaction of the main components of the educational production. Results. The cause of any production is needs availability. To meet his needs the person should enter into business relations with other people that is the basis of market relations. A key resource of the economy, the main engine of development perform is the knowledge which is also an important criterion for successful adaptation of a man in society. Accordingly, in society, the role of education as a sphere of production, exchange, consumption of knowledge is increasing. The received knowledge, skills and other competences by the individual is the end result of educational process. Knowledge is one of the main elements of intellectual property and intellectual capital, and it contributes to the development of the macroenvironment, namely, labor and scientific potential of the state. Each high school, its scientific and innovative activity, its financial bases of development, depends on the efficiency of using new knowledge. Value/originality. It is established that the main components of educational process are: at the macro level - the needs of society, state, educational environment and resources; at the micro level - activities in the field of education and science, individual, scientific and pedagogical workers, the interaction of whom leads to the transmission, assimilation, augmentation and use of knowledge, skills and other competencies.

EDUCATIONAL PRODUCTION AS A DETERMINING FACTOR IN SOCIETY DEVELOPMENT