Numbers of persons with a higher education have inclined fast during the last dec-ades, as the University sector in Sweden has increased. This due to that the Swedish government has had a very encouraging attitude towards the Universities position for economic regional growth. The aim of this thesis is to see if there are any relationships between students at a University in a region and the number of patents that have been applied for in the same region using data taken from European patent of-fice and Statistics Sweden. Patent is one way to measure innovations, and knowledge is one of the core foundations for new innovations. Different models have been used to determine if any significant relationship between patent applications and number of people with higher education is present. The empirical findings came up with the results that numbers of people with higher education have positive relationship with University regions. The two variables, people with higher technical education and research and development at Universities also showed positive significant results, which gives support for the chosen theories in the thesis. It is hard to say that the decen-tralization of the Swedish universities have been a total success, because in the thesis results were found which shoed that the Malmö region was outstanding in terms of patent applications. In this region many different Universities and private R&D de-partments are located, together with students etc. Further research in this field has to be conducted to be able to give the policy maker better foundation for decisions.