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The decision-making processes of knowledge transfer are regarded as the Stackelberg leader-followers games between the core firm and partners in the technology innovation alliance. Basically, a decision-making model of knowledge transfer is established to analyze the influences of knowledge transfer decisions of the core and partners. The analysis results point out that the precondition of the existence and development of alliances is that the core firm's knowledge marginal revenues are large enough. Partners transfer their knowledge capital according to the proportion structure of their own marginal revenues. There is a positive correlation between the knowledge transfer decisions of core firm and its own marginal revenues, and a negative correlation between the knowledge transfer decisions of core firm and the sum of partners' marginal revenues.

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The industrial technology innovation strategic alliance is a middle organization made up of two or more technological innovation organizations to enhance their technology innovation ability and competitiveness through mutual support and cooperation in the industry. The common and consistent goal of the alliance is the industry technology advancement. The research on the alliance stability always is one of emphasis research problems which theory researchers and practitioners pay special attention to. In this paper, the author divides the knowledge input into the independent technology innovation knowledge input and the union technology innovation knowledge input from the perspective of the knowledge transfer, and establishes the member benefit function model based on knowledge transfer. On this basis, this paper probes into the alliance stability condition, which will helpful to solve the alliance instability. These research results may provide the theoretical basis and reference value for these enterprises which will prepare to establish or already establish the alliance and seek further development.