This study analyzes the competition in terms of technological race in the Taiwanese manufacturing industry. The research adopts Taiwan Industry Economics Services (TIES) database, Directorate-General of Budget, Accounting and Statistics, Executive Yuan, R.O.C (Taiwan), Department of Statistics, Ministry of Economic Affairs, Intellectual Property Office (TIPO) database and Second Taiwan Technological Innovation Survey (TTIS II) to reveal the competition either in “catching-up” or “leapfrogging” phenomena through panel regression, two-stage least squares (2SLS) and Poisson regression. The results show that the competition degree in the Taiwanese manufacturing industry is fierce, the Taiwanese manufacturing industry competition circumstance is catching-up and patents maintain a competitive asymmetry. The analysis provides empirical evidence that the Taiwanese manufacturing enterprises implement catching-up strategy to acquire larger market share and succeed in a keen competition.