This article is to use the concept of National R&D System to examine Taiwan's developments in recent years. In terms of SWOT analysis, citations of Taiwan's science performance in theses are lagging far behind, compared the benchmarking countries; technological performance on patent has excellent growth; although high-tech products are greatly competitive in the global market and innovation performance is limited to a single industry. This paper proposes a management strategy that the government ought to increase R&D funding for higher education system, as well as increase the percentage of the private sector's R&D investment in the global markets. In order to boost the competitiveness of Taiwan's technological products, the government should actively provide the incentives for business-university cooperation, and encourage traditional industries to invest R&D in order to gain a competitive advantage in today's global market.