The background of this study is to see that the Social Service Special Region of Yogyakarta, which is one of the agencies involved in the handling of social welfare problems in view the demands and peramsalahan social welfare are increasingly complex, the Department of Social Welfare in answering this demand by institutional innovation by establishing new institutional namely Technical Services Unit (UPTD) Integrated Rehabilitation Center for persons with Disabilities (BRTPD) with persons with disabilities blind, mentally disabled, physically disabled, deaf, and mute. In this study, the type of research that will be used is descriptive qualitative approach. Data collection techniques used are in the form of documentation, interviews, and observation / direct observation. The data analysis is conducted by means of data collection, data assessment, data interpretation, and conclusion, which is adapted to the prevailing theory and recognized, on a variable institutional innovation indicators vision and strategy, gluing basic kpetensi, strengthening information and intelligence organizations, market orientation and customers, creativity and idea management, systems and organizational structures, management ideas and also variable factors that influence institutional innovation with indicators of internal bureaucracy, the political environment, the external environment. Results from this study indicate that the institutional innovation UPTD Integrated Rehabilitation Center for Persons with Disabilities conducted Social Service in outline with menggukan indicators in this study strongly support the creation of institutional innovation UPTD Integrated Rehabilitation Center for Persons with Disabilities. Factors that influence institutional innovation is internal bureaucracy that human resources are still limited in terms of quality and quantity, the political environment is not yet fully support the budget, and the environment outside the public sector (external) that is too high expectations of the public are not comparable with capacity owned by hall integrated rehabilitation of persons with disabilities.