Facing global challenges, countries around the world rival each other by demonstrating their competitiveness brought by technological innovation. Under the influences of globalization, cheap resource is no longer one of the competing advantages; high-income countries can only compete against others by knowledge and technology since the wages and the costs of their resources are higher and higher. The utilization of knowledge and information, the combination of existing and kernel skills, the application of technological innovation and research and development to sustain competitiveness of an enterprise, and the enhancement of competitive advantages and the raise of profits are the critical issues of current industry development. This paper compares the nowadays situation of technological innovation activities in Taiwan with that in other countries, exposes various technological innovation problems, identifies the keys to the problems, and then uncovers the most proper solutions for the development of Taiwan.