The technology transfer efficiency and the allocation of the property right: From the viewpoint of the incomplete contract

The centre problem of the technology transfer is the knowledge transfer including the contractible explicit knowledge and the non-contractible tacit knowledge. The character of uncontractiblity of knowledge affects the efficiency of technology transfer. The paper discussed the efficiency of technology transfer and the ownership governance mechanism in the R&D management from the viewpoint of incomplete contracts. The loss of efficiency couldn´t be avoided during ex-post exchange because of the uncontractiblity of technology knowledge. The paper argued that when the uncertainty of the value and cost of R&D is greater, the likelihood of opportunistic action of holdup is less when the integration by factor contract and the property right of innovation belong to the principal.