The question of position is one of pivotal issues about the research of application-oriented institutions. This paper discusses the theme by using the method of literature, and logical analysis etc, the research results are that talents cultivated by application-oriented institutions should not be narrowly understood as the high technology talents, but should be viewed as the professional talents facing the practice area. It is necessary for application-oriented institutions to focus on the social needs, which is not fundamental. It is also the duty for application-oriented institutions to serve for the progress of local economy, the inheritance and development of local culture as well as the local democracy, whose origin is to serve for human development.
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