The Research Of The Transaction Cost In Defense Technology Investment

The institutional-cost theory of the New Institutionalism holds the view that the transaction has been involved with uses of practical resources, which means the transaction needs cost. Institutional- cost in the transaction process exerts a direct influence on the allocation efficiency of the resource. New institutions are planned to reduce institutional costs of the transaction and make the resource allocation more effective.Currently, investment on the scientific research of the national defense is entangled with occurrences of "delaying progress, weakening capabilities and adding more expenses". To some extent, it knocks down the configuring efficiency of the investment on the scientific research of the national defense. Exorbitant institutional costs are one of the important reasons of these problems. In this very thesis, the institutional-cost theory of the New Institutionalism is brought into the scientific research investment on national defense. Guided by the feasibility analysis of the present domestic scientific research investment on national defense, the current study probes into main characteristics and components of the institutional cost of the scientific research investment on national defense. Meanwhile, analysis is given on reasons of exorbitant institutional costs during the investment. Some measures are proposed to reduce institutional costs of the scientific research investment on national defense.