National strength is closely related to it's technological progress, so every country spares no efforts on science and technology development. Due to scientific and technological development in Japan is much more advanced than what we have in Taiwan, and the promoting technology research and development institutions in Japan are so different from those in Taiwan, both industrial sector and the related public sector should pay very much attentions. For this purpose, this paper sheds light on the functions of two institutions-Japan Society for the Promotion of Science (JSPS), and Japan Science and Technology Agency (JST).Both of JSPS and JST are independent administrative institutions under the auspices of the Ministry of Education. JSPS focuses on academic research, JST focuses on science and technology research. JSPS as an independent administrative institution, support for research initiatives. JSPS subsidies scientific research, trains researchers, promotes international academic exchanges, and respects the autonomy and creativity of researchers. The contents of JST are creating advanced technology; promoting business using advanced technology; promoting dissemination of scientific and technological information, researcher exchange and university research support; and promoting a public understanding of science and technology; so as to realize the purpose of industrial cooperation.Through effective performance appraisal system, Japanese Government make the limited funds to maximize the efficiency available. It becomes a great and important lesson to Taiwan.