One of the hotspots of higher education research and practice in India in recent years has been innovation and entrepreneurship education. One new approach is to teach innovation and entrepreneurship. Students' entrepreneurial potential is increased via entrepreneurial education, which encourages them to pursue entrepreneurial careers. However, in India, most young people with unrealized business potential leave college without the necessary fundamental knowledge. The economy is suffering from an inconsistent approach to entrepreneurship development policies. Therefore, this study intends to assess how entrepreneurial activities affect the innovation of students pursuing higher education. The research utilizes quantitative research methods and collects data from students (n= 367) of higher education institutions in the state of Punjab. To find the desired outcome statistical analysis was performed. The results revealed that entrepreneurial knowledge, entrepreneurial awareness, and formalized teaching strategies significantly impact the higher education student’s innovative process. The results also suggest that universities and colleges must continue to make the most of formal policy advantages to support entrepreneurship and innovation, increase educational spending, help college students develop they run their respective businesses, and pinpoint the issues that college students have with finding work.