Corporate-based education programs, the response of higher education, and the cooperation between business and higher education are considered. It is suggested that the fact that private industry has moved into the degree-granting arena, even to a small extent, may indicate that higher education needs to be more responsive to the business sector. Corporate education differs from higher education in that it tends to serve primarily institutional needs rather than personal needs, is characterized by unusually high motivation of participants, the workplace is the setting for learning and doing, and it has a pragmatic orientation. However, despite some fundamental differences in purpose and orientation, corporate education centers sometimes bear a striking resemblance to traditional colleges and universities. A corporation may be better able to accommodate rapidly changing knowledge requirements by conducting its own education program rather than attempting to work through a college or university. Corporations and institutions of higher education are involved in numerous partnership activities ranging from national projects to individual collegiate/corporate efforts. However, higher education may have to institute significant changes in its structure and develop additional nontraditional delivery systems if it is to serve the educational needs of the business sector. Colleges and universities must become more sensitive to the manpower needs of industry and must carefully evaluate their ability to respond to these needs in a way that is consistent with their institutional mission. Higher education needs more flexibility and adaptability in course and program approval, missions procedures, residency requirements, and course and program duration. (SW)