Along with the changes in economic environment and upgrading industries, medical industry has become the lifeline of current economic survival. The added value of products is promoted through the sustaining innovation of knowledge-based production and the proper application of information technology to make the growth and advance of enterprises. The samples of this study are mainly employees of medical industry in southern Taiwan. The questionnaires are distributed and collected by email. A total of 322 valid samples were received, and the sample retrieval rate in this study was 64%. The research results conclude significantly positive effects of 1.sustaining innovation on knowledge integration ability, 2.knowledge integration ability on innovation performance, and 3.sustaining innovation on innovation performance. According to the results, suggestions are proposed, expecting to assist medical industry in promoting the external knowledge resource absorptive power and integration ability to create the sustaining innovation and competitiveness in medical industry.