The government?s science and technology (S&T) policy is the important guideline and direction for the development of technology industry in Taiwan. Along with the government?s S&T policy, research funds were distributed among the academic and industrial agencies for the purpose of R&D. It had successfully established many technologies and high-technology industries, and which made great contributions to the economic development of Taiwan. The paper is aimed at high technology industry in Taiwan as research objectives, and by using secondary data of aggregate indicators as performance of Taiwan?s science and technology policy has been collected, and via a Cobb-Douglas production function to evaluate the impact of S&T policy on the development of high tech industry in Taiwan. The empirical results proved that the major variables of our high-technology industry are the research funds and the patent. Under the era of knowledge-based economies, the government?s policy on the development of high-technology industry was able to promote industry?s competitiveness. Besides, the future high-technology policy should focus on the research of new technology and the ability to produce high market value products and develop core industry. On the other hand, the industry should be followed the government?s policy and they should be cooperated with the government on the education of our own high technology experts to enhance the ability of innovations and laid the foundation as the leader of high technology markets around the world.