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| 1 | The article is devoted to studying the interrelation of innovational systems, scientific research, and higher education. It makes an attempt to show modern higher education in the aspect of its localization and internationalization. The chief aim of the paper is to study the major function of Chinese higher education in cultural innovation. The author analyses the process of China’s higher education nationalization and internationalization, and the new challenges of cultural innovation. The starting point is an original contribution to understanding the role of higher education in relation to innovation. New requirements are being applied to the educational system: today, high quality, diversification, and permanency are being emphasized. In modern educational conceptions, the staff education is being considered firmly as the main task of higher education, as well as activities meant to improve the quality of professional training. On this basis we move ahead and the procedure we follow can be briefly described as follows: firstly, the paper makes a simple analysis of the characteristics of higher education localization and its influence on cultural innovation; meanwhile, the author puts forward several proposals for the reform оf higher education in order to promote cultural innovation. Secondly, the author proceeds to emphasize the importance of higher education internationalization and its value in cultural innovation. Thirdly, the paper expounds internationalization communication and cooperation of Chinese higher education. At last, it is concluded that higher educational localization and internationalization are of great significance for realization of the function of cultural innovation keeping balance between Chinese native culture and international culture. Keywords: cultural innovation, localization, internationalization, Chinese higher education | 1285 | ||||