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 the Research and Innovation University. The first part of the publication provides an 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. The second part gives an analysis of current classification of Latvian Universities as well analyses other options of classification offered by the Ministry of Education and Science and by other Latvian Universities. The third part of publication evaluates potential to develop a Research and Innovation University in Latvia. This part analyses current financial support of the government to the Latvian Universities and the 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 plan if the government would set an aim to establish the Research and Innovation University. Recommendation part provides suggestions for government regarding classification of Latvian Universities and establishment of the Research and Innovation University in Latvia.