Introduction. Today, improving the efficiency of both national and regional economy is seen in the active use of knowledge. Due to the fact that knowledge does not transform the economy, and hence, there is no guarantee that the investment in research and higher education will bring economic benefit, new mechanisms are needed to ensure that the relationship with the applied knowledge economy. The basis of such a mechanism could serve as interaction university, business and government on the principles of the triple helix model. Theoretical analysis. The article discusses the theoretical basis for interaction of universities, business and government for regional development, presented the elements of this interaction revealed the function of each of them, the necessity of constructing the mechanism of interaction of the University, business and government on the principles of the triple helix model. Results. Interaction of universities, business and government – is not only the process of rapprochement and communication of various independent spheres of activity, and it is a form of conjugation of their interests, and at the same time – this is one of the objective tendencies inherent in the innovative development of the economy, which is worthwhile to consider the organic unity and relationship with both the features of functioning of the economic conditions in these areas of science, education and industry, and other trends characteristic for the innovation economy. Among the expected results at the regional level from the interaction of universities, business and government to the fore the development of human capital and knowledge-intensive production, stimulating the development of new forms of business, increasing the degree of commercialization in the field of research and development, an increase in tax revenues regions.