This paper is about the new role of academic institutions in the economic development of developing countries. Educational institutes are significant in propelling economic development as they are the powerful drivers, technology centres, developers and investors. Universities can affect the economic growth of developing countries. The study identifies the current technology innovation in the field of education and analyzes the case of Pakistan and developed countries. The purpose of this new role of academic institutions is to touch virtually every aspect of daily lives and the prosperity of the communities live in rural areas. At a larger scale it aims to initiate a process of policy learning, exchange between countries in different stages of economic development and knowledge sharing with their universities research students.