The study of technology supply of scientific institutions and technology demand of enterprises

Based on the assumptions of the separation of technical supply and demand side, we established of technology supply model of research institutions and enterprise technology selection model. We discussed the number of the best researchers and the best allocation of research resources and the impact of expected profit of new technology. In order to promote technological innovation, government should coordinate the benefit between research institutions and enterprises, reduce the market risk of the new technology to promote new technology´s commercial value. We found that the retained profits when companies select the new technology which is greater than the profit of the enterprise. When government provided subsidies to the new technology which higher than that of the existing profit technology but below the retained profits, companies will choose the new technology.