The Research On Changes In The Institution Of International Technology Trade On The Basis Of Transaction Cost

With the rapid development of international technology trade in scale, content and mode, the potential total transaction costs are on a tremendous rise while promoting the degree of division and specialization. Transaction cost has become a decisive factor in restricting the further development of international technology trade. So it's necessary to refer to the institutions and stimulate the effective institutional change in order to reduce the transaction costs and break the restraints of the development.The contents of transaction cost in the international technology trade can be defined explicitly as seven aspects. The transaction cost has an important impact on the development of international technology trade and constrains its improvement. Based on the research of North and Williamson, the critical factors in the transaction cost of international technology trade are composed of the characters of international technology trade itself and government regulations. Moreover, one of the functions of the institutions is to diminish the transaction cost, so the institutions are the turning point to reduce the transaction costs. Four important institutions have the crucial effects to reduce the transaction costs, including international technology market, multinational technology alliance, property and international institutions. It's the development of technology and productivity that makes the demand and supply of the institutional change under the unbalanced condition and helps forward the dynamic institutional change of international technology trade. The institutional change of international technology trade can be classified into induced and imposed institutional change. The institutions overcome the constraints of transaction costs to greater extent by gradual change of itself or essential change towards a new institution.Concerning the practices of relatively sluggish development of China's international technology trade, it's necessary to reduce the transaction costs through the innovation of institutions so as to encourage the enhancement of international technology trade. The innovation proceeds as it follows. To systematize the international technology market following the guidance of government. To choose the appropriate alliance partners and advance the multinational technology alliance actively. To accelerate the reforms of property and establish the social evaluation system of credit. To improve the construction of law and strengthen the protection ofknowledge property. To join in the international institution such as WTO and realize the coordination between domestic and international institutions.