Abstract: Purpose/Significance How to make spin-offs to complete independent innovation and successfully realize independent development is an important issue in the field of organizational capability. Design/Methodology Taking Xinhua College as an example, this paper explores the formation and evolution mechanism of organizational independence through longitudinal case study. Conclusions/Findings It is found that organizational independence can be reconstructed as internal replication capability and internal innovation capability; the accumulation and interaction of independent internal innovation capabilities stimulate the activity of external capability and drive the continuous release of organizational “inside-out” capability; driven by environmental pressure and opportunities, organizational independence capability is a circular construction process of “outside-in”—“capability retention”—“inside-out”. The process mechanism of capability retention plays an important role in the transformation of organizational independent capability from “outside-in” to “inside-out” logic. It drives the organization of dependence on external resources to internal initiative, and constantly stimulates the innovation vitality.