Innovativeness has become a major competitive factor for companies, networks and regions, and renewal is very important for any business. The purpose of this paper is to increase knowledge of how education can contribute to new kinds of innovative business competences. The paper analyses the design and implementation processes of the new Master’s degree programme in Service Innovation and Design targeted for practitioners. This is an action research based case study. The profound analysis of the case material and the participant observations during the four-year process show that the main issues related to the success of a new master’s degree programme tend to be (1) clear objectives, (2) extensive research on future competence needs, (3) a committed and strongly led development team, (4) comprehensive networks with the key players in the competence area, and (5) a thorough documentation of the whole process as a basis for continuous development.