Due to lack of manpower, capital and facilities, the small and medium sized business, the backbone of Taiwan's economy, can not afford the huge expenses that are needed in R&D. Therefore the transfer of industrial technology from the government research institutes concerned, such as ITRI, to private sector has become a major source for manufactures to acquire production technology. Before deciding to make the technological transfer to manufactures, however, the research institutes must consider whether there will be a maximum amount of economic benefits created after such a transfer is completed. Since the key to creation of economic benefits in the transferring process depends on the manufacturing capabilities of inheriting the new tehnologies as well as their strategies in marketing the products, it is vitally important to select manufacturers that are most suited for the technology transfer. By means of discussion and by interviewing several experts in the related field, the paper has concluded various factors needed to be considered when making technology transfer. In the meantime, with adoption of the analytic hierarchic process (AHP) questionnaire, the paper has created an operation pattern by quantifying the relations between different factors so that manufacturers can make proper selection before making the technology transfer.