Global trends in higher education policy reforms present an increasing connectedness to policies towards establishing knowledge economies. Conceptions of human capital, national innovation systems and so on put universities into a central position for economic development. This tendency and the dominant institutional practices created by national systems and universities bring the need for re-thinking the idea of university in a historical perspective and include creativity and innovation for future perspectives. Being an ambitious developing country for becoming a global actor and a member of Bologna Process, the discourse on higher education in Turkey has shifted towards becoming a knowledge economy and increasing global competitiveness in the last years. The recent proposal by Turkish Higher Education Council is an attempt for adapting to global trends as can be seen in the given principles of diversity, institutional autonomy and accountability, performance evaluation and scientific competition, financial flexibility and multi-resourced financial structure and quality assurance. Based on the draft of the new law (January 2013) and the responses by universities and other stakeholders published on “http:yeniyasa.yok.gov.tr” this paper discusses the idea of university and questions how innovative is the new proposal for the future of Turkish Higher Education system.