The motivation of this study is the arising issue of payoff allocation under technology alliance, Shapley value used to solve n-person cooperative game is firstly introduced in this paper. Through the modification of classic Shapley value algorithm, the payoff function of cooperative games with fuzzy coalitions is defined and it is proved that the payoff function and modified Shapley value satisfy the axioms of superadditivity and symmetry to solve the no dummy cooperative game. The results indicate that the correcting algorithm Shapley value is consistent with the classic Shapley value in the form of function. Finally, its feasibility is verified with numerical analysis, and several extensions of the model are considered as well. © 2014 IEEE.