It is critical for manufacturing sectors to improve maximum performance to foster a competitive advantage. This article aims to analyze how the manufacturing industry can promote its performance to achieve sustainable development. We embark performance evaluation on Taiwanese manufacturing sectors which have profound implications in the global manufacturing supply chain. This study collected public information and reliable data from the Industrial Technology Research Institute (ITRI) covering 12 Taiwanese manufacturing industries. Performance evaluation indicators consist of four inputs chosen from a set of six items, whereas one output is from a set of three items. The analysis from Data Envelopment Analysis (DEA) is conducted including CCR (Charnes, Cooper, & Rhodes) efficiency, BCC (Banker et al.) efficiency, A&P(Andersen and Petersen) efficiency, cross-efficiency and D&G(Doyle and Green) efficiency plus the VIKOR prioritization method to evaluate the 12 manufacturing industries in Taiwan. The comprehensive analysis and comparison results of this study show the sophisticated outcomes through the analysis of DEA and VIKOR. In another objective evaluation, the efficiency of DEA proves a certain correlation between the model and the measurement of the VIKOR method. The results indicate that Taiwan’s manufacturing industry is moving towards design innovation thinking towards the high value of its own brand, whereas the industries in China and South East Asia appear different. The results can provide the best practice to allow the international manufacturing industry to enjoy a resurgence after falling output and diminishing labor force.

The traditional manufacturing industry has suffered from changing global demands and rapid technology upgrades. It is critical to incorporate innovation into contemporary manufacturing for sustainable development. A comprehensive interpretation of the determinants and directions of technical change is greatly needed. Therefore, this study aims to explore innovative applications that can enhance the value of manufacturing and examine the key factors associated with these innovations. In this paper, three traditional manufacturing industries are analyzed using the research methodologies analytic hierarchy processing (AHP) and Decision Making Trial and Evaluation Laboratory (DEMATEL), resulting in a set of six key criteria for innovative manufacturing. The causal relationships considering the six criteria in three industries are analyzed. The main contribution of this study is to establish a new framework for the sustainable development of traditional manufacturing industries. This could help to support conceptual innovation in these industries and establish a pragmatic approach to increase sustainable development. From the research results, the following suggestions can be made. The traditional manufacturing industries in Taiwan should focus on design and innovation. This can enhance the value-added and international competitiveness of industrial chains, enterprises, and products. Ultimately, it can lead to the sustainable development of Taiwan’s traditional industries.