Higher education is considered as an engine for development and growth in the knowledge society, because of its benefits to boost research, knowledge and technological innovation. This paper examines the relation between innovation, higher education and economic growth during the 1996-2014 period in the case of developed and developing countries. The cointegration relationship between series was examined by using panel cointegration test developed by Pedroni (1999, 2004) and Kao (1999). As a result of the empirical analysis, cointegration relationship between the series was determined. The results provide also evidence of a positive effect of innovation in tertiary education on economic growth.