Innovation is a field receiving a great deal of attention from companies in today's fast changing business environment. This research care about what is the key factor of corporate innovation capability. The LISREL model of the relationships among absorptive capacity, knowledge sharing and innovation capability is constructed based on the data sampled from 17 Taiwan cross-sectional corporations and received 355 valid questionnaires. The results indicate that the absorptive capacity is the intervening factor between knowledge sharing and innovation capability. It also shows that knowledge sharing has a positive effect on absorptive capacity and the full mediator model can be used to the other industry of this paper because it has property of model generalization and model extension.