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The Education Working Paper Series is produced by the Education Unit at the World Bank (HDNED). It provides an avenue for World Bank staff to publish and disseminate preliminary education findings to encourage discussion and exchange ideas within the World Bank and among the broader development community. This Guide seeks to help those who design and manage innovation funds to do a better job. It strives to capture practical lessons and good practice associated with half a dozen World Bank financed innovation funds for higher education in Africa, Asia and Latin America. Staff who manage these innovation funds were brought together for this purpose in a workshop organized by the World Bank and hosted by the Ministry of Education and Culture of Mozambique in October 2005. For readers interested in more extensive exploration of worldwide experience with innovation funds, a list of additional references is provided at the end of this publication. Attached are: (1) World Bank Funded Higher Education Projects Containing Innovation Funds; and (2) Broad Impact Indicators for Innovation Funds. (Contains 5 tables.) [This publication was produced in conjunction with the World Bank's Africa Region Human Development Department (AFTHD) as part of the Africa Region Human Development Working Paper Series (Number 107).]