Industrial Technology Research Institute (ITRI) of Taiwan and Korea Institute of Science and Technology (KIST) of Korea are among the most acknowledged public research institutes in East Asia. This paper applies the evolutionary perspective for a comparative case study, emphasizing the path dependence with the innovation system context. Also, this paper elucidates the factors that configured the dynamics of ITRI and KIST in populating spin-offs and advancing biotechnology, respectively. It sheds new light on what particular organizational structures and routines would posit functionality in propagating certain activities and outcomes.