With the impacts of globalization and internationalization, traditional local industry showed downfall is an inevitable trend. However, the development of local industry is related to basic economic activities in rural areas and aboriginal areas. The scale of local characteristic products is very small and nation-wide dispersing. To reveal the characteristic, it is necessary government intervention. Recently years, central government has invested a great amount of money to promote local industry development. But, the result of guiding area only limited on a several points. According to the statistic data of the Small and Medium Enterprise Administration, Ministry of Economic Affairs, among the stages of the guidance, the most of the projects is Taipei county inc1uded 26 cases during the first and the second stage. It is account for 21.67% of total number. Secondary is Nantou county has 19 cases, accounted for 15.83%. The third is Pingtung has 10 cases, accounted for 8.33%. Miaoli, Taichung, and Hualien county each has 9 cases, accounted 7.5% stands on the fourth. Sum up the first four counties is 68.33%. This shows that concentration on the projects promoted by is very high. To bring into play integrality efficiency, government guidance requires augment to be widespread. The development of local characteristic industry is an effective way to upgrade traditional culture, technology, creative, and value added. Therefore, the development of local characteristic industry should toward promoting international market, strengthening creative and exquisite products, cultivating craftsman as inheritor of local characteristic industry, and getting high consensus between government and private sector. Through public and private sectors cooperating, combining intelligence, creative, and aesthetics, to reveal industry characteristics, expand local industry niche, bring industry sustainable development, and put into effect for increasing employment and local economic boom.