Chen Wei^1,2, Yang Bai^1,2*, Lin Chuan^1,2

1.Research Center for International Business and Economy, Sichuan International Studies University, Chongqing 400031, China;

2.International Business School, Sichuan International Studies University,Chongqing 400031, China.

chenwei@sisu.edu.cn

Abstract：The knowledge level of partners is an important index for dominant enterprise of cooperative innovation project to select partner in project-based supply chain. Aiming at the adverse selection problem under the knowledge level of partners can't observe in advance, the partner selection mechanism of cooperative innovation in project-based supply chain is designed with principal-agent theory. The conclusions indicate that the dominant enterprise selects an appropriate partner mainly based on its knowledge level and cost of cooperative innovation; the reward of partner from the dominant enterprise is mainly composed of cost of knowledge input and information rent; and the knowledge level of partner to be selected by dominant enterprise under adverse selection is lower than that under complete information.

Key words：Partner Selection;  Cooperative Innovation;  Project-based Supply Chain;  Knowledge Level