Cooperation with industries (co-op) is well-established among vocational education institutions. However, since it is rarely included as a graduation requirement, we found very little literature on cooperation at graduate-level management education. This research explored the possibility of one co-op model in particular-Summer Research Projects (SRP) for graduate-level management education. From a transaction cost view, this study intended to justify the cost effectiveness of SRP from three perspectives 1)the industries, 2)the students, and 3)the school by uncovering the effects and the transaction costs associated with the tri-lateral governance structure of a SRP. The target of our investigation was the SRP model utilized by the graduate school of the Institute of Human Resource Management of National Sun Yat-sen University. The respondents unanimously agreed that SRP is a viable co-op model and recommended its adoption to other institutions. However, current model did have a few drawbacks, such as a short project duration, elusive project definitions, difficulty in finding co-op candidate, cultural and adjustment issues raised by the students, etc., which all led to increased transaction costs.