Introducing Schumpeter competition in industry (SCII) and the crossing effect between technological and market professional efforts into our model, the paper studies the simultaneous optimization of the contract duration (complexity of innovation) , organizational form and residual claims in order to motivate innovation. The paper finds that integration of technology and market professionals is a prioritized organizational form to motivate teams in the absence of principal-agent problems, and that organizational forms of teams could not exert any impact on either contract duration or residual claims. The study also finds that both the SCII and the originality of innovation are negatively correlated with the contract duration, and that the organizational form of teams is dependent on the relationship among the crossing effect, technological originality, and market originality. This study improves the actual operability with reference to innovation incentives and strengthens the response to industrial competition.