Abstract:The paper analyzes a three-stage game on cooperation R D. It finds no matter who allocates the property right of the R D result by investor, or by researcher or by both, the investment and effort both can’t achieve the first best. The effort of research depends on the investment and the proportion of property right. The paper also builds a hold-up model. On the condition of renegotiation, we find no matter who decides the initial proportion, the last allocation of property right between the investor and researcher is the same. Further more, the research’s effort only depends on the investment, which is irrelevant of the initial property right"s proportion. As long as the investor and researcher of R D separate, neither investment nor effort can reach the first best.