What happens, if a university moves to a town that never had a higher education institution previously? What is the impact of this development both on the community and the institution? The aim of this paper is to answer this question. The authors use the concept of 'social innovation' for understanding the developments. An institute may initiate, organise and coordinate all kinds of learning that takes place in a given community (Bradford, 2003). To do so, the institute may have to change its missions (not only its third, but also its first, second and third ones. These developments could be interpreted as a 'social innovation' during which the local economy and society was challenged and they looked for new responses. As suggested in the 'social innovation' literature the main research method was participatory research, combined with structured and semi-structured interviews, story-telling and narrative analyses. As a result, three interest groups could be described with various requirements different demands toward the university; while the university had to modify its structure, curriculum and communications. The main lesson to learn is that 'social innovation' as a frame of interpretation can be used to understand the developmental processes that occurred between the locals and a new university.