A Neoinstitutional Economic Perspective

With the advent of knowledge economy, universities have played amore and more important role during the knowledge innovation. Tostrengthen the University-Industry Collaboration (UIC) is an importantway for us to make self-innovation and build an innovation-orientedcountry. Practices in recent years show that the UIC is not only animportant form of self-innovation, but also an important way to stimulateinnovation vigor of enterprises and universities. However in the UIC, ouruniversities are always in a passive position. Universities' Behaviordeviates and hinders the UIC from developing smoothly. Therefore howto innovate Universities' behavior model becomes an important issueneeded to study urgently at present.From the point of view of Neoinstitutional Economics, the UIC is akind of transaction activity which will be characterized in knowledgetransfer and is done in the market. Therefore, this article, regarding therelevant theories of Neoinstitutional Economics as a guide, mainly usedsome methods for research, such as qualitative analysis, comparativeanalysis, documents etc.In order to implement the UIC successfully, Universities' Behaviorand Enterprises' Behavior should act in concert. Through making areasonable induction, the behavior of participating in the UIC ofuniversities in our country can be found mainly in the following aspects: to choose the mode of cooperation, to make profit distribution in allparties, to cultivate innovative talents, to obtain research funds, to transferand diffuse technology, to protect intellectual property right etc. Bycomparing the behavior of government and universities, we can find thatgovernment also plays a great important part whose contribution can notbe negated, though it is the cooperation between industry and universities.Government behavior promotes the development of UIC. By comparingEnterprise Behavior and Universities' Behavior in the UIC, we can findthat the cooperation can not be done smoothly if the behaviors in the twoparties are different. At present, the main factors affecting theimplementation of University Behavior in the UIC are the following 10aspects: Conflicts of value ideas, Contradictions in technology supply anddemand, the difficulties of protecting intellectual property rights etc. UIC itself is a kind of transaction. The establishment andmaintenance of cooperative relationship must involve transaction cost. Sohow to choose University Behavior in UIC in our country depends onanalyzing from Neoinstitutional Economics perspective. First we shouldanalyze the transaction cost involved in the UIC by using TransactionCost Theory. Then we can make analysis from the perspective ofinformation asymmetry and know that the UIC is a structure of thetransaction existing in the industry and the university. It is also aninevitable result that makes transactions in the way of reducing total costs.In order to reduce transaction costs, there will be market orientation invalue choice of the Universities' Behavior in UIC. Finally from the UICinstitution changing perspective, we get to know that the system supply isnot enough in the UIC.To position the Universities' Behavior in China during the course ofthe UIC, we need to learn some specific behavior of foreign universitiesparticipating in the UIC. Through the study of the countries acting well inthe UIC such as United States, Britain, Canada, Japan and Australia, wecan make a conclusion that there are 7 specific behaviors showed by theabove countries. Drawing on the advantages of a university abroad, wecan make reasonable position and make correct choice in theUniversities' Behavior in the UIC.In the real UIC, because of incomplete information, various adverseselections and moral hazard problems may occur. In order to change thissituation, we need to make some system design to reduce transactioncosts. If we do not design resistive asymmetric information processingsystem, various adverse selections and moral hazard problems will occur.Then transaction costs will greatly increase. So it is needed to makeSystem Arrangements in UIC for the reasonable behavior choice. Toaccomplish this, first we need to make the following system innovation inthe university reasonable Behavior choice. To make system innovation, we need to improve University Behavior institutional environment in theUIC. And we can design the system from the government and corporatelevels.