In the past three years, Sweden has been selected as one of the top countries with strong innovation system in the world according to the report of Global Innovation Index (GII). And due to the similar background of industrial development that both Sweden and Taiwan focus on the areas of high-tech and biotechnology, the example of innovation development in Sweden will also be a good model for Taiwan in the progress of implementing a good innovation system.This article discusses the development of the innovation system in Sweden and also analyzes the role of one significant government agency, VINNOVA, regarding how it assisted the development of innovation in Sweden. One of the important concepts promoted by VINNOVA is the theory of Triple Helix innovation, which treats the roles of different innovation actors (universities, industry and government) symmetrically and promotes innovation as collaboration between industry, university and policy. Moreover, the article further introduces important projects promoted by Sweden and Sweden's innovation policy implemented in recent years. The conclusion of the article ends with author's personal opinion on how to reach the goal of promoting better innovation system in Taiwan by referring the model of VINNOVA.