Talents are the most important factor of all in the efforts to establish an innovative country. In universities and colleges, the bases for talent cultivation, the turnover of teachers in an explicit or recessive way calls for our urgent attention. This article aims at analyzing the complex causes of college teachers' turnover from the perspective of institutional economics including Limitation of Incentive Theory, Interests Relative Theory and Principal-Agent Theory. Besides, it puts forward some relevant measures to solve the current problem.