Abstract: This paper examines the Flanders Institute for Biotechnology (VIB) in Belgium as a case study, systematically analyzing its institutional context and developmental trajectory to elucidate the origins and implications of its distinctive “virtual institute” model. The study reveals that throughout VIB’s transformation from a regional innovation platform to an internationally recognized biotechnology hub, it has functioned as the designer, operator, and catalyst of a specialized innovation microsystem, demonstrating three core capabilities: rule design, resource integration, and project incubation. Drawing on empirical data and illustrative cases, this paper further investigates the structure and impact of these capabilities, demonstrating that VIB has evolved from a passive participant into a proactive leader within the innovation ecosystem by establishing and managing an efficient innovation value cycle. These insights offer valuable lessons for advancing reforms in China’s industry-university-research cooperation mechanism. Based on these findings, this paper recommends institutional and governance reforms in China’s research and development (R&D) sector, with a focus on strengthening institutional supply, innovating R&D organizational models, and expanding channels for capital integration. It further calls for the strategic rebuilding of the innovation ecosystem’s capacity to enhance the integration efficiency of industry, academia, and research, thereby supporting high-level self-reliance in science and technology and advancing the construction of a modern industrial system.

Key words: Innovation Ecosystem; Industry-University-Research Collaboration; Flemish Institute for Biotechnology (VIB); Governance Structure; Rule Design; Resource Coupling; Spin Out