Received April 26, 2020; Revised September 5, 2020; Accepted October 6, 2020

Abstract: Over enrolment and inadequate resources in Public Technical Universities in Kenya contribute to low quality education devoid of research and innovation and incapable of driving the National Development Agenda. Consequently, does Performance Contract Target Setting stimulate innovation in Public Technical Universities? The study sought to establish the efficacy of Performance Contract Target Setting in stimulating innovations. The study utilised the Goal Setting theory advanced by Locke and Latham (2018). The study employed the Explanatory Survey research design. The study was carried out in Technical Universities in Kenya. From a population of 15104, a sample of 377 was obtained using the Morgan Krejcie formulae. Data was collected by the use of questionnaire. Content validity of the instrument was ensured by expert judgement. Reliability of study instruments was ascertained by Cronbach alpha. Analysis of qualitative data was done by use of content analysis based on identifiable themes while Quantitative data was analysed by use of Simple regression. Analysed data was presented in tables and figures in line with study objective. The findings revealed that Performance Contract target setting accounted for 65% innovation in Public Technical Universities. The study concludes that Performance Contract Target Setting has a positive influence on innovations in Public Technical Universities. It is recommended that Performance Contract Target Setting should specifically include innovation and be strengthened as a tool for management to increase efficiency and stimulate innovations in Public Technical Universities.