Middle-income trap is a status of slowing down and stagnation in economic growth when countries reach middle-income levels. Countries have to restructure their economies fundamentally in order to get rid of this trap; and they restructure national resources, particularly human capital for higher education, technological production and innovation systems. Under realities of the global economic system innovation capacities of nations along with knowledge production have gained extra importance. Fresh perspectives share the view that competitiveness of national economies is founded on innovation; and formulating a national innovation policy especially in developing countries seems to be essential for economic growth and development. In this light a crucial role governments are expected to assume is reforming research institutions, technology transfer institutions and higher education systems in general. In this paper, I will analyze these perspectives with a specific focus on Turkey's national innovation efforts and higher education system.