University technology transfer allows universities to extract benefits from their research. We examine how universities can create and capture value from their technology creation and technology commercialization efforts by embracing a dynamic capabilities perspective. Our longitudinal analysis involves 829 universities and 3908 university-year observations in 30 subnational regions (provinces) in China during a 6-year period. Our findings reveal (1) that universities create more ideas and capture more licensing value through dynamic management and active orchestration of assets, (2) that a developed factor market accelerates value creation and commercialization, and (3) that a developed institutional environment at the subnational level stimulates value creation but inhibits value capture. These interesting findings justify a dynamic capabilities perspective of the university technology transfer process while opening avenues for future research.