This paper is attempting to discuss the subject of constructing social capital network, with the purpose toexplore the mechanism of governmental governance in dealing with knowledge- based economy which has become the leading force for Taiwan's economic development. As far as the occupation of competitive force in global market is concerned, it is knowledge-based economy, rather than formal business-led one. Taiwan's strategy finally achieves the purpose. To produce effective interaction with civil society, it will easily create environ-nment for exploring new knowledge. The renovation of know-ledge will make social capital assume the competitive character if it is placed in the social context. All efforts, if properly undertaken, would speed up to achieve the goal of knowledge-based economy development.