The average global annual growth rate of digital content products has grown exponentially. This is because of the technology advancement, cost reduction, and availability of the enabling technologies, e.g., digital processing, digital storage, and digital telecommunications. The development of the digital content industry (DCI) requires a strong cultural background, creative ideas, respect of intellectual property rights, and telecommunications infrastructure, which are all dependent on government supportive policies. This study summarizes the government policies, progress, and obstacles in the development of Taiwan's DCI and compares these subjects with other countries, including the United States, EU countries, Japan, and Korea. In this paper; Taiwan's DCI opportunities and challenges will be discussed, and strategies and recommendations will be provided, based on Taiwan's unique resources and competitive advantages. KEY WORDS: digital content, content creation, content distribution, digital archives, wireless content, Introduction The knowledge-based economy is different from the manufacturing-orientated information communications technology (ICT) industry or the service industry because it emphasizes knowledge innovation and relies on different modes of production, [...]