Back to November of 2011 Taiwan has initiated "Taiwan-Japan Industrial Bridge Program" to enhance Taiwan-Japan industrial cooperation and exchange. As the duration of the program is coming to an end in year 2016, whether the program is to continue or make any shift in direction lies in the actual progress of both parties in their industrial cooperation. The purpose of this paper firstly explores the mutual benefits and background of the industrial bridge program, then the author of this study investigates the policy and concrete measures taken by the two parties. Finally the influence of the program on Japan, including its government, local governments, and industries is analyzed; the future prospect and foreseen difficulties of both sides are explored as well. Results of study show that after implementing the above program, both Japan and Taiwan entered a more active mode in mutual cooperation and exchange, and that the article number of MOU or LOI agreed on both parties also shows an increasing curve. Among the local governments of Japan, in particular, Mie Prefecture since the signing up of MOU has adopted the model of "triangular alliance of government-industry-academia". Both countries as a result create quite an extent of substantial achievement in terms of their industrial, cultural, academic interaction, as well as cooperation in tourism. Moreover, Mie Prefecture provided many opportunities for the mediating and interaction between its enterprises and those of Taiwan, with the aim of stimulating the internationalization and cooperation of its small-to-medium-sized enterprises. Various small-to medium-sized enterprises in the prefecture, encouraged by such government policy, has travelled to Taiwan to look for business partners. Given the fact that the government of both Taiwan and Japan are on the progress of promoting cooperation among small-to-medium-sized enterprises, the key to its success lies in the fact that whether both governments can provide proper guidance and opportunities. It is suggested that Taiwan further strengthen its exchange and cooperation with the Japan government; the model of triangular alliance of government-industry-academia brought up by Mie Prefecture will be a good model of reference in the enhancement of mutual cooperation between the local governments of Taiwan and Japan.