There is a lack of in-depth studies on how technology transfer organizations (TTOs) are organized and developed. This paper examines the evolution/institutionalization of TTOs in Tsinghua University (TU), as a microcosm of the development of TTOs in Chinese universities. It explores two issues in particular: what kinds of TTOs have been developed in TU and why some organizational forms become more institutionalised than others. In so doing, an analytical framework is developed by synthesizing the literature on organizational innovation and institutionalization. The analysis is based on extensive review of academic literature and policy documents, as well as on face-to-face interviews with practitioners involved in technology transfer in TU. The paper identifies the tendencies of TTO development in Chinese universities and advances theories on the institutionalization of university TTOs in general.