Changes brought about in higher education by the information-oriented society and the influence of the marketplace on the university's products are analyzed. The role that education played in the industrial revolution is also addressed. It is claimed that education adopted the goals of industrialization and, in its educational philosophy, structure, and content, attempted to produce the product demanded by the marketplace. Similar trends are noted for the information era, but with some important differences: the growing importance of information as an economic good in its own right and the changes in market demand for worker skills. It is suggested that since the industrial revolution, the university has provided three major types of products for society: an educated and socialized worker, knowledge in the form of basic research, and knowledge in the form of applied research. The university's role in providing continuing education and industry's involvement in employee development and training are also considered. Finally, attention is directed to competition from industry for academic personnel and the potential for continued basic and applied research at the university. (SW)