Purpose This article extends territorial intellectual capital (TIC) research by explaining how regions activate and convert intangible resources through mission-oriented innovation policy (MOIP). It theorises TIC activation as a stage-sensitive process through which human, relational, structural and renewal capital are mobilised, recombined and made measurable. Design/methodology/approach An exploratory UK case study uses an insider-outsider research design and a qualitative, multi-method dataset comprising structured programme review records, an independent evaluation report and a policy workshop. Abductive analysis traced how mission-relevant actors, relationships, routines and capabilities emerged across the programme lifecycle and compared these developments with conventional monitoring metrics. Findings The case identifies four capital-activation pathways. Human capital develops from capability gaps to innovation confidence; relational capital progresses from connection-seeking to collaborative governance; structural capital grows through delivery routines, evidence-building and co-investment enablement; and renewal capital becomes visible through strategic reframing and adaptive learning. Cross-cutting capital-activating behaviours include problem framing, brokerage, legitimation, evidence-building, resource mobilisation, routinisation, strategic reframing and portfolio learning. Originality/value The study advances TIC research by moving beyond identifying territorial capital stocks to tracing how these capitals are activated and converted through mission-oriented programme delivery. It proposes an integrated TIC framework that links TIC to MOIP concerns for directionality, coordination and formative learning. The framework supports stage-sensitive indicators that make relational, organisational and capability-building effects visible within public accountability settings.