Abstract: Contract-based knowledge alliance is based on contract, as a link to share knowledge resources, the flow of knowledge and innovation and complementary advantage of other organizations formed by contract or equity, risk-sharing network of organizations. Organization of bounded rationality, opportunism and the external environment of the organization's uncertainty led to the alliance itself has an income distribution mechanism of the instability, the design of effective, confidence-building mechanism and the formation of efficient information communication mechanisms is conducive to enhancing the stability of the Union.