On the study of indispensability of our government's function and position in Transition Economy,it discusses the particularity of RD activity in this period. And it analyzes the function and position of the governments like u.s. Finland,Japan and South Korea in RD activities. On referring the successful experiences of these countries and considering the particular situation of our country,it studies the function and position of our government in RD activity. So it provides references for all levels of our government to develop policies and exert their function correctly.