The purpose of this study is to present an analytical review of the educational institutions in Bangalore. It outlines the stakeholders of institutions, their contribution towards innovation and offers ways to improve the contribution to increase innovation in the educational institutions. The study is based on literature review and survey method. Reliability test, descriptive statistics and the correlation is done using SPSS software to analyse the data. Students and Teaching staffs are the direct contributors towards innovation in the institutions. Several practical recommendations stem out of the study: how to stimulate thinking about idea generation, how to generate new ideas, how to increase effectiveness of various factors influence innovation in the institution. Innovation in educational institution is not only applicable in the institute but also for the society. New ideas raised with good quality positively effect on education and also benefit the whole society.