Abstract: Through the case study involving the development history of Guangyang Corporation, the technology capability growth and the organization capability evolution of S&T start-up enterprises are explored against the background of discontinuous technology change. It is found that the formation of dynamic capability with innovation development as its goal is a complexed process; success of start-up and the foresight of entrepreneurs are not enough to support the sustainable growth of enterprise. The innovation leading strategy, discovery mechanism of innovation source, and the co-evolution of organization capability composing of technology capability are the effective paths to achieve high performance growth for S&T start-up enterprises.

Key words: capability evolution, case study, start-up enterprise, development