Many students who wanted to enroll into better senior high schools and topnotch universities would attend supplementary/ cram schools to improve the practical techniques of taking school entrance exams in Taiwan. As a result, supplementary/cram schools began to expand and continue to thrive on. The significant growth of supplementary education industry has demonstrated this industry has its own value of existence and has become a truly growing industry that plays a decisive role in Taiwan's current educational and economic status.

In the ever-changing economic era, supplementary/cram schools are facing various impacts and crises and some of them are forced to shut down. The issue of learning from other industries in order to make changes and improvements and strive for business survival is very urgent for supplementary education industry. Joseph A. Schumpeter pointed out (1992) that innovation is the core of economic growth, and enterprises shall strive to implement innovation to improve their competitiveness. This research has proposed a preliminary assumption that if Taiwan's supplementary education industry has implements innovation, it can enhance its employees' competence and improve their job performance, and the overall industry can grow more competitive than before.

The main research objectives of this study include: (1) To acquire opinions from educational experts and scholars by conducting in-depth interviews with them in order to confirm the key success factors mentioned in the questionnaire that influence supplementary/cram schools' innovation. (2) To Study the difference in innovation competence about employees of the supplementary/ cram school which has implemented innovation, and the one which has not implemented innovation. (3) To explore the difference in job performance between employees of the supplementary/ cram school which has implemented innovation, and the one which has not implemented innovation. (4) To find out the relationship between employees' innovation competence and their job performance. (5) To provide specific suggestions to various supplementary/ cram schools and make them understand how to control the important factors to successfully implement innovation and further enhance employees' innovation competence and improve their productivity.

Based on these two empirical evidences, the researcher suggested that supplementary/cram schools should put a lot more efforts into implementing innovation, and make well-planned strategy of innovation to control the key success factors to achieve the goal of success. By means of innovation, employees are inspired to become more competent under such innovative working environment while employees with greater competence are proned to have higher efficiency and higher productivity in job performance, and would then further contribute to the improvement of competitive advantages.

The importance of this research is two-folds. First of all, the conduct of this research is in hope to enlighten more follow-up researchers to make in-depth studies on this emerging industry in order to propose diversified and exquisite discussions to exist as important references. Second, this research is to serve as an important guidance and critical resource for supplementary/cram schools in maintaining competitiveness in supplementary education as well as assisting our society and country to achieve the overall quality in education.