Sustainable development of the national economy is connected with ability of the system of higher education to ensure and prepare the specialists required for different branches of the national economy. Compared with other resources the human resources have a vital role in ensuring persistent and dynamic development of the economy in Latvia. Quality of higher education, infrastructure and funding of higher education are fundamental for emerging new specialists and innovations. Obviously, emerging students decide to enroll in higher education establishment if knowledge, skills and diploma of the establishment can ensure better position in the labor market. Result oriented algorithm for improvement of the quality of the higher education of Latvia and its international competitiveness have been worked out for development of the system of higher education.