This thesis reports on developing a strategic assessment of the of Taiwan’s Biomass industry, using a portfolio model to assess competitive and strategic requirements. The portfolio model entails a two-dimensional analysis, containing market s-curve (vertical axis) and the value chain (horizontal). Three research methods used for data collection are literature review, expert interview, and general survey. Research results reveal that Biomass industry is positioned at the burgeoning stage of the market s-curve, and also between the burgeoning region and the developing region of the value chain. Future prospects should be placed at the position of developing stage. Future analysis leads to a conclusion that the most critical categories of policy instruments are ”Full support to national innovation systems”, “Government policies in support of industrial innovation”, “Technology cooperation and integration”, and “Cultivation of professional researchers”.