Entrepreneurship awards have become an integrated part in the national innovation system. However, a common understanding of this phenomenon can be regarded as insufficient within the entrepreneurship literature. This study investigated whether the participation in an award, as well as the interaction with its mechanisms and procedures can improve the success of a new technology based firm (NTBF). The study constructs a capability framework for NTBFs where generic capabilities are identified. The construct is induced based on the existing literature base on resources and capabilities, on NTBFs, as well as on success factors in startups, and is complemented by inductive data from case studies and from an explorative survey. Overall, this research demonstrates that there exists an impact from the investigated entrepreneurial award program on its participant companies. In particular, the participation increases the likelihood of specific capability to be created or beneficially sustained within the founder's team. Building on this effect, the relevance of entrepreneurial awards to society is strengthened, which award organizations in turn may capitalize on.