Technology development and the fast changing market have resulted in the life cycle of high-tech products becoming shorter. Enterprises must therefore continuously conduct innovative research to meet customer demand and increase industrial competitiveness. Innovative product research and management have become the most important activities in enterprise survival and sustainability. This study is aimed at analyzing and exploring the relationship between Knowledge Management (KM), Knowledge Absorption Capability and Innovation Management Capability in Taiwan high-tech industries. This study found: (1) a significant positive correlation between knowledge management capability and innovation management capability; (2) a significant positive correlation between knowledge management capability and knowledge absorption capability; and (3) a significant positive correlation between knowledge absorption capability and innovation management capability. Through analyses conducted using statistic methods, such as Factor Analysis, Correlation Analysis, Multiple-regression -analysis, LISREL Model Analysis, and t-Test, this study found a significant positive correlation between knowledge management capability, knowledge absorption capability and innovation management capability in Taiwan’s High-tech industries.
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