This research first collected inputs and outputs data form five TFT-LCD industries in Taiwan, and analyzed the operational efficiency by used Data Envelopment Analysis, furthermore, this research will evaluate the relationship between operational efficiency and technical innovation by using Mann Whitney U test. The research result shows that (1) the average overall technical efficiency of panel industries in Taiwan is 82.6% and the remaining 17.4% still can be improved. The inefficiency comes from the scale. Therefore, if the overall efficiency in the panel industry needs to be improved, it can focus on the scale. (2) A business volume, all assets volume and quality of employees are obviously positive correction with the efficiency to operate a business. However, research expense and number of internal patent are less correction with it.