| The rapid development of China’s market economy provides a tremendous opportunity for the development of small and medium-sized enterprises (SMEs). In recent years, SMEs formed a more and more importance impact on our country’s economy, and the development of our society has become increasingly inseparable development of SMEs. Meantime, with the increasing development of fierce market competition and new technologies, SMEs must be faster, more effective to develop new product to enhance the core competitiveness, to maintain a sustainable competitive advantage and avoid elimination. What’s more, SMEs can not "go it alone", they must obtain external resources and collaboration for SMEs is a good choice.However, Due to the natural limitations, such as lack of funds, the shortage of technical innovation and the scarcity of talent, the collaboration of University-Industry-Institute of SMEs are often temporary, short-term, blindness, low efficiency, high risk and unstable, greatly hindered the efficiency of cooperation of SMEs.In the cooperation, the primary unstable performance is choice of partners, This article takes this opportunity to apply the latest theory proposed by the Nobel Prize winner of economics in2012-design of stable matching. This paper studies stable matching mechanism of University-Industry-Institute Collaborations of SMEs, trying to make the two sides reach a long-term and stable matching. After this matching, there is no other reason for them to change their choices. Compared with other matches, partners got from this match is the most satisfactory, namely the state of Pareto efficiency.Firstly, on the basis of GS matching algorithm, this paper analyzes the feasibility of University-Industry-Institute Collaborations of SMEs, and the result is that there exists a stable matching of university and industry.Secondly, from the respect of particularity of University-Industry-Institute Collaborations of SMEs, this paper analyzes the problems under the exact GS algorithm, which are the game behavior and strategic behavior. Thus the modified GS matching algorithm is proposed. Meanwhile, this paper proposed the establishment of a centralized clearinghouse-a focus to sort order the preference of SMEs and university and institutes, making it easier for strict preference;Finally, this paper designs the environment of University-Industry-Institute Collaborations of SMEs, including government policies and regulations, information science and technology intermediary channels for SMEs, the financial support of financial institutions, research cooperation to enhance the ability of the parties themselves. |