How do intelligent technology innovation systems develop? How do institutional factors influence the development of innovation systems? This study adopted the National/Sectoral Innovation System as the main framework to study the dynamics of intelligent technology innovation system in Taiwan. Combining scientometric mapping, social network analysis, Multi Criteria Decision-Making (MCDM), and 33 interviews to understand the interactions between key stakeholders and the institutions in the intelligent technology sector in Taiwan. The results show that a relatively large proportions of foreign technologies are widely adopted into the system through international business networks. Regarding commercial applications, firms prefer to introduce foreign technology through international business networks. This illustrates the needs of commercializations of domestic technological research and development. The future policy should promote academia-industry collaborations to enhance the commercializations of scientific research outcomes. This research contributes to enhance the knowledge flow in the innovation system, thus, to upgrade the national capabilities of small emerging economies in East Asia.