Abstract: The distribution of income from the transformation of scientific and technological achievements in universities is an important issue of laws and government policies all over the world. Focusing on the first-class universities in China and the United States, this paper summarizes and compares the income distribution mechanism of the transformation of scientific and technological achievements in universities in the two countries from the perspectives of the proportion of the inventors and the distribution mode of University dominated funds. It is found that there are obvious differences between the two countries: the reward for inventors in Chinese universities is significantly higher than that in United States; American universities mainly use internal incentives, while Chinese universities mainly use the combination of internal incentives and external incentives. The main reason for the difference in income distribution mechanism is the difference in the development stage and development mode of the transformation of scientific and technological achievements in Universities between the two countries. It is suggested that at the present stage, the income distribution policy of the transformation of scientific and technological achievements in Chinese universities should still adhere to the income distribution mode under the government dominated model, but on the other hand, it should appropriately change to the income distribution mode under the market-oriented model.