The dramatic expansion of Taiwan universities/colleges from about 100 to 160 from the late 1980s has encountered problems due to social and global changes. What should Taiwan universities move toward and how? This research relies on secondary data to explore the issues Taiwan universities currently face—a low birth rate and global competition. The decreasing number of incoming students will result in a lower registration rate and less tuition revenue, which will make some universities struggle to survive. Hence, government policies, proposed by the Ministry of Education, have been implemented to assist Taiwan universities to adjust to external changes. The Innovative Transformation Policy, adopted in 2015, consists of strategies for university–industry cooperation, university mergers, university closures, and a re-shaping of the university paradigm. This policy has begun to be implemented and its initial outcome will be continually evaluated. In accordance with the Innovative Transformation Policy, this study encourages Taiwan universities to improve governance, set prominent unique characteristics of development, and enhance global competitiveness.
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