Abstract: As an important way and means for latecomers to catch up with innovation, radical innovation is attracting wide attention in the academic and industrial circles. Using the method of case study, this paper makes an in-depth discussion on the relationship between capability evolution, institutional supply and radical innovation of latecomers. It is found that the pursuit of the goal of radical innovation in latecomers needs the combined effect of internal capability and external institution. With the dynamic evolution of latecomers’ capability from ordinary capability to high-level capability, from enabling capability to empowerment capability, and the change of government industrial supply from administrative intervention to perfect service, from single policy to policy integration, latecomers have gradually completed the transition from "innovation following" to "innovation breakthrough" to "innovation leading". The above findings reveal the law of synergistic co-evolution among capability, institutional supply and radical innovation, which is of great significance for deepening theoretical understanding and carrying out theoretical practice.