The article's purpose is a theoretical and methodological analysis of the main theories regarding the management of educational institutions and the prospects of introducing innovations into this process. The work uses research methods such as system analysis and survey analysis. Four main theories of management were studied. Their advantages and disadvantages are determined by considering the specifics of educational institutions' activities in China and other countries. Hierarchy theory emphasizes differences in the division of labor at different levels of management of educational institutions. It is emphasized that when building an innovative management system, one should consider the size of the institution and the distribution of subjects and disciplines and form an organizational system with adequate control and coordination at lower levels. The theory of human capital is of great importance in discussing the function of educational institutions and directions for introducing innovations into the management system. An understanding of social value is an essential basis for determining the function of colleges and universities, a full awareness of the differences between human capital needs and dynamics, intelligent functions in colleges and universities and the development of higher education policies, intelligently defining the scope of professional development is essential for the healthy development of the entire education system and the whole society is also helpful. According to the theory of competitiveness, the management of educational institutions cannot copy a set of innovative management methods at enterprises in the real sector of the economy. The introduction of innovations in the management system of educational institutions should focus on teaching, scientific research, and improving the quality of education. So far, significant progress has been made in reforming the innovation management system in colleges and universities. However, the reform focuses mainly on dividing functions and system integration into colleges and universities, while the primary focus should be teaching and research. Each of the theories could be better and can be implemented. However, by taking the best of each theory, it is possible to build an effective management system that will consider the educational institution's funding sources, its structure and size, and other factors.
Keywords: innovative development, management, educational institutions, intellectual capital, hierarchy, competitiveness, economic development.