What is Europeanization of Higher Education

Current trends such as globalization and the growing importance of intangible assets and a knowledge-based economy makes a significant contribution to highlighting the importance of higher education funding. Classified as one of the key factors determining the level of innovation and competitiveness, both at the micro and macro levels, education and especially higher education have been funded in different ways in different countries. Therefore, the main objective of the research is to determine the impact of higher education expenditure on innovation in Serbia and Slovenia, on the basis of which a comparison of results can be made. Analyzing the data for the period 2007-2016 and based on the results of the regression analysis, we conclude that there is a negative significant impact of the share of the state allocation for higher education on the level of innovation in Serbia, while the results relating to the situation in Slovenia are contrary and indicate a positive significant impact.