Abstract As for the macro-analysis level, the traditional statist theory, on the research for economic development of East Asia industrialized countries, has revealed that the State can play an important role in the process of economic transformation and development. Particularly, the State can appropriately use industrial policies to accelerate the accumulation of the nation¡¦s wealth and to accomplish a striking economic achievement. However, the State-centred theory assumes the separation between the state and society; (State-centred theory or Society-centred theory) and regard the state as an independent unity. In this way, the theory is inevitably become limited and over-simplified. Thus, the state-centred theory fails to make a reasonable explanation on why (economic) society is thoroughly willing to follow each state-oriented step. Moreover, the theory disregards the true motivation behind the economical performance of East Asia countries. With the process of political democratization and economical liberalization, the state-centred theory is challenged and questioned. Scholars now have to seriously regard the relationship between state and society as embedded one rather than insulated one. They find that the reason for successful economical transformation in East Asia lies not only in states industrial policy (institutional arrangement) but in the social force. Since the state and society are interrelated¡Xits connecting mechanism, policy networks¡Xthe state-centred theory has recently emphasized the study of policy networks. In the process of Taiwan textile industrial development, the state always takes up the role of a creator and participant. Though nowadays the leading role and competitive edge of textile industry on Taiwan¡¦s economy are no longer there, can we directly claim that the textile industry has become a kind of ¡§sunset industry¡¨? The main purpose of this research is to make a defense for the false impression on Taiwan¡¦s textile industry as a ¡§sunset industry¡¨. The study hopes to take off the vile of so-called ¡§sunset industry¡¨ on Taiwan¡¦s textile industry, and to argue it as a ¡§sunrise industry¡¨. Doubtlessly, the developmental experience of Taiwan¡¦s textile industry is a successful model which shows the embedded relationship between the state and society. The thesis plans to take the static dimension of institutional process (such as organization, funds, quota institution, and function) and the dynamic dimension of behavioral process as subject of a case study; and goes further to analyze the interaction among state, Taiwan Textile Federation and textile industries.