Abstract: The Steinbeis Technology Transfer Center (Germany) is a worldwide famous institution of technology transfer. This article analyses the operation system of German non-profit technology transfer institutions by taking the Steinbeis Center as an example. On the basis of summarizing its five critical success factors: market positioning, organizing structure, service network, governmental support and juridical person, this article offers four policy proposals. First is to improve the function positioning of technology transfer institution. Second is to improve the relevant regulations of non-profit organizations. Third is to speed up the construction of open service network and the internationalization process. The last one is to combine the institutional construction and the modern vocational education.