As vital components of regional innovation ecosystems, local undergraduate institutions play a pivotal role in technology commercialization. However, existing conversion processes in these institutions face significant challenges that lead to resource wastage and hinder economic development. Through analyzing current practices, we examine policy frameworks, output metrics, and conversion efficiency, identifying key obstacles and proposing targeted solutions. The analysis reveals persistent issues including low commercialization rates, misalignment with market demands, R&D disconnection, evaluation bias, insufficient incentives, and inadequate management systems. To address these challenges, the paper proposes market-driven R&D mechanisms, restructured evaluation frameworks, enhanced incentive and error-tolerance systems, along with optimized management structures and talent development programs. These measures are designed to boost conversion efficiency and foster a virtuous cycle between technological innovation and regional economic progress.