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nnovative knowledge. In most industries, firm-university cooperation is advocated by government and it is developing in a quick pace. Universities have abundant resource for basic research and applied research, but rarely does the research of universities directly turn out to product or service to serve the market (Pavirt,2001), because most universities lack commercialization skills. However, firms are familiar with the market and skillful in commercialization but suffer from weak research capabilities, so the cooperation between firms and universities could bring bilateral benefits.

According to the report of Wang (1997), there are mainly 3 ways (excluding outsourcing) that firms cooperate with universities for scientific research. The first one is that firms give financial support to the research subject conducting by universities. The most common way is that firms pay salaries for some researcher positions in the university. Researchers in these positions have to conduct research project in the interest of the company. This way of cooperation is quite common in USA, especially in disciplines like pharmacy, psychology and chemistry. The second cooperation way is firm-university joint research, both firm and university sends their professors to the laboratory to study on a particular research subject, the research fund is also supported by both parties. This way of cooperation is most effective because the risk and outcome are shared by both parties by which none of them will draw an inefficient attitude. The last way is that university professors come to corporate lab and join in the lab’s subject. In this way, corporate lab could conveniently bring external knowledge into their organization while university professors could gain knowledge from the lab’s existing research data. Besides, university professors who temporally work in corporate labs are usually paid both from the university and the firm, an increased income could raise their research motivation.

Outsourcing-Firm & Firm- Open Innovation Seeking Strategy

Due to the increasing industrial competition, firms now concern short-run return more than long-run benefit. Scientific research sometimes is treated as a luxury activity with high risk and long payoff time that could only be afford by monopoly and oligopoly companies (Schmidt, 2007). Nowadays, more and more firms start to outsource scientific research from external suppliers. In 2005, Conexant System outsources half of its scientific research to the scientific research center of Hyderabad City, India. In 2007, Nokia claimed the company will outsource all its research on cell phone chips and internal research resource will be mainly allocated to software development and other aspects. On the contrary, some famous corporate labs begin to provide research outsource service to other companies. For example, Xerox PARC became an independent subsidiary to provide research services and intellectual property to outside client (Schmidt, 2007). According to a statistic of Antisoma PLC, about 33% companies in the world outsource part or all of their scientific research subject to other companies or institutes in 2008 and the figure will still increase in the future. These facts indicate that research outsourcing is becoming a new form for firms to link with scientific research (Wu and Wang, 2008).

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