With competitive incentives, the Teaching Excellence Project (TEP) has been implemented as a major intermediary for better teaching and learning in universities in Taiwan since 2005. Even though Taiwan’s higher education institutes are divided into two tracks: one for academic orientation, and the other for occupational training, the purposes of the TEP are similar. Basically, the TEP tried to drive the universities provided more practical courses to enhance students’ competences and lead to knowledge-action integration. Therefore, increasing employment rate, license pass rate, and counseling mechanism have become the main purposes to implement the TEP. To examine the effects of implementation, this study collected the data from 20 technological and vocational universities including their teachers’ satisfaction, students’ satisfaction, and institutions’ performance in 2014. We considered the differences of granted and non-granted institutions under this TEP for our comparison. The results reveal there is a positive effect on increasing employment and passing licenses for granted group compared to the non-granted group. Moreover, as the employment rate and license pass rate are increasing, both teachers’ and students’ satisfaction have shown increasing; in this case, the gap between teachers’ and students’ satisfaction will be reduced. This study suggests the grant system works well for driving teaching and learning for excellence. This TEP could enhance the effectiveness of knowledge-action integration and shorten the gap between teachers’ and students’ satisfaction. The experience of implementing this TEP can be as an example for the other non-granted institutions.
