The views and examples found in this paper are based on a case study of the School of Education at the University of Massachusetts. The principal objective of this case study was to understand how an organization in higher education employed available resources in order to promote both internal and external reform in the field of higher education. Among the more important issues included under this borad objective are: (1) The role of individual and institutional reputation in channeling resource flow between a marketplace of funding agencies and higher educational organizations. (2) The intended and actual uses of administrative structures regulating the flow of resources from a university's external environment, as well as among the subordinate parts of the university. (3) The uses of project resources as sets of incentives for individual participation in reputedly innovative, problemsolving, activities. (4) The role of organizational leadership in creating, maintaining, and coordinating both resource flow and the variety of incentives for innovative activities that may be derived from that flow. One of the study's principal recommendations is to create and maintain a national network of incentives for innovation in education. (Author/PG)