Abstract ¡§The economic miracle of Taiwan¡¨ is the result of heavy interference of the State into economic development. After democratization, the State is not as convenient as it was with the authoritative period, as far as economic sector is concerned. The case for Bin-nan industrial exploit should be able to increase national income for 1%, but stalled for 11 years, it stays at the origin. It means that the State has lost the autonomy in forming and setting up policies that are closely related to the welfare of the public. Utilizing the Model of The theory of Claus Offe¡¦s system analysis for exploring the changes in autonomy of state after democratization, aided with case for Bin-nan industrial exploit, we discussed the economic, legitimate, and political sub-system and made throughout interpretation. It is clear that in the highly controversial case for Bin-nan industrial exploit, the State slowed down the pace of development approval in exchange of support of the administration of the public and left the capitalists to communicate and negotiate with the local and social groups. The State expressed its support of the project orally on the one hand and assist in administration operations to avoid capital flee on the other hand, which avoid the non-support of current administration from the public due to full support of capitalist, which may lead to the legitimacy crisis of the administration. During the economic development process after democratization of Taiwan, the State is still holding the dominating position in the implementation of mercantilism and is still playing the initiative role in economic development and continues in promoting capital accumulation and in pushing industried technology. The will in developing economy has indicated that the State has its preoccupies position, so the State inevitably has dual consideration in the selection of autonomy policy, which is expecting continuous capital accumulation and securing the consent from the people for its legitimate ruling base.