The aim of this publication is to offer an analysis of possibility to establish Research and Innovation University in Latvia. Based on current political interest to reform the field of higher education, this publication provides one of possible solutions to the question of how to categorize Latvian Universities and how to establish Research and Innovation University. First part of the publication provides analysis of the classification principles of Universities, based on global trends and highlights the differences between general types of Universities. Main aims and tasks are provided to these types of Universities, especially indicating prerequisites for establishing a Research and Innovation University. Second part gives an analysis of current classification of Latvian Universities as well analyses other options of classification offered by Ministry of Higher Education and Science and by other Latvian Universities. Third part of publication evaluates potential to develop a Research and Innovation University in Latvia. This part analyses current financial support from the government to the Latvian Universities and a Reform plan of Higher Education system developed by the Ministry of Education and Science. It also indicates what should be changed in the financial system and within the Reform plans if government would set an aim to establish Research and Innovation University. Recommendation part provided suggestions for government of classification of Latvian Universities and creating a Research and Innovation University in Latvia.