Abstract-The higher education sector today are facing global challenges from the rapid technological change and increased demands of today's world. Academic institutions need to develop their abilities and respond to these demands like business organisations. Knowledge and knowledge sharing are considered the main critical forces for business success and the key to enhancing innovation. Knowledge sharing is considered to be the foundation of learning and research at academic institutions and to play a key role in developing the innovation of universities.This research seeks to examine the impact of knowledge sharing processes (donating and collecting) on process innovation. A total of 252 usable questionnaires were collected from public higher education institutions in Iraq. Structural equation modelling with AMOS 21 confirmed the importance of knowledge sharing in developing innovation in higher education. Guidelines are developed for academics as well as leaders, and evidence is provided in support of the use of knowledge sharing to enhance process innovation within higher education in developing countries, particularly Iraq.