This study analyzes the conditions for the commercialization of public technologies transferred to the private sector and the subsequent effect on business growth. We focus on the commercial exploitation of technologies transferred by universities and public research institutes (U&PRIs) to companies. The empirical analysis uses detailed information regarding an extensive set of actual instances of public-private technology transfer in Korea (514 cases of technologies transferred by 43 major U&PRIs) to highlight the role of company absorptive capacity and internal innovation capabilities, cooperation with U&PRIs, and the intensity of market competition in determining commercialization success and business growth. We find that the intensity of market competition significantly influenced the paths along which absorptive capacity and internal innovation capacity affected successful commercialization, and successful commercialization in turn affected business growth. Effective partnership is a key factor of the successful commercialization of transferred technologies irrespective of market situations. Absorptive capacity contributes to their short-term success and long-term growth when market competition is strong.