Human capital is one of the most precious assets of a nation. One major approach to cultivating this asset is through formal education in the schools. This article explores the strengths and weaknesses of educational concepts and pedagogical approaches in Taiwan, wherein its human capital characteristics are described. Taiwan's international competitiveness is analyzed by examining the international competitive edges of various industrial sectors. Since the relationship between Taiwan (ROC), the Chinese mainland (PRC) and the United States of America (USA.) is very close and complicated, this article uses relevant data from both the PRC and the USA as a frame of reference. The theoretical and practical implications of this study are also discussed.