Important basis on the enterprises competitiveness were organization knowledge management and innovation active. In this empirical study, we discuss the affected dynamic capabilities to innovation performance, and to join the perspective of absorptive capacities and knowledge sharing. For experiment, question survey and partial least squares analysis for Top 500 manufacturing companies' R&D section in Taiwan were used to test the research model. Result argued that innovation performance be affected by dynamic capabilities for the organization, ”when the organization stronger dynamic capabilities, innovation and higher performance”. We supported knowledge management capabilities on manufacturing change, to solve the problems OEM production of low profit.