This study aims to investigate if the operation performance of technology firm, with higher R&D input and patent output, would be better? First of all, this study employs panel data, including IC design, IC manufacturing, IC assembling, and IC testing industries, from 2001 to 2007 and develops empirical models, proposed by Färe, Grosskopf, Lindgren, & Roos (FGLR, 1989), to calculate the Malmquist index for evaluating the productivity of IC industry. In addition, the rates for Return-On-Invested-Capital (ROIC) are showed for evaluating the profitability. Finally, this study proposes a performance-matrix, integrated by Malmquist index and ROIC rate, to value changes of both productivity and profitability of Taiwan’s IC firms. The empirical results show that, firstly, the R&D density and patent output of IC design industry are in the first place. The profitability of IC design industry is also the best. The productivity and profitability of IC manufacturing are in the second place. The productivity of IC testing is in the third place but its profitability is in the last place. Secondly, the productivity and profitability of industry are getting better while it takes more R&D input. The influence of R&D input on industrial profitability is higher than industrial productivity, but it is not necessarily contributive to industrial operation performance.