The Brazilian government has been fostering innovation through policies aimed at transferring technology from publicly funded science and technology organizations to the market. One response to this initiative has been an attempt by some universities to transform themselves into entrepreneurial institutions. In this paper the authors use a longitudinal case study to analyse the organizational transformation at the Alberto Luiz Coimbra Institute for Graduate Studies and Research in Engineering (COPPE) of the Federal University of Rio de Janeiro to become entrepreneurial. The analysis focuses on the entrepreneurial capabilities developed by this academic unit. It was found that the main capabilities developed were managing the university interface with outside parties; integrating public policy initiatives; supporting entrepreneurial activities; technology transfer; and managing shared resources. These five capabilities are interrelated and their development has occurred in tandem with the organizational transformation of the university. (Contains 2 tables, 1 figure, and 1 note.)