In this paper, we discuss the importance attached to scientific research in colleges and universities, focusing on the effect of establishing Scientific Research Awards for outstanding research projects and findings.With an empirical research, we analyze the data and prove that universities palys an indispensable role in national scientific and technological innovation and economic development.However research projects of higher level and higher quality need increasing in University of Shanghai for Science and Technology establishes a scientific incentive mechanism to inspirie and mobilize its faculties' enthusiasm in researches.Hence rapidly promots scientific research of the university.