This paper attempts to construct a capability evolution view of sustainability transitions (ST) by relying on institutionalists’ outcomes such as economic theories of the firm, the profiting from innovation framework (PFI), and the dynamic capabilities (DC) framework, and economics as a moral science. The ideas on DC and PFI have contributed much to the study of the wealth of firms run by profit-driven entrepreneurs. In addition, we should pay attention to value distribution for society and the future generation as well as value protection by way of governance and related institutional issues and construct an entrepreneur model by taking into consideration the microfoundations, namely the diversity and dynamics of human nature. Our study makes a significant contribution to the ST literature because it eliminates the lacuna left in prior research on ST lacking the close interactions with, and deep investigation into, economics.