Background: Technology and innovation have become a worldwide feature of business. Virtually, no organisation can survive without technology and innovation. When it comes to developing technology and innovation strategies, managers are often left alone to decide which technology and innovation types to pursue.Aim: This article investigates the various key challenges faced by metropolitan cities or municipalities in managing competitive advantage through technology and innovation in Kaohsiung Government City, Taiwan.Setting: The study focused on key challenges faced by metropolitan cities or municipalities in managing competitive advantage through technology and innovation at Kaohsiung City Government in Taiwan.Methods: The methodology used in this study is mainly the secondary data analysis. A complete and thoroughly secondary data analysis process has been utilised as a research design and approach to complete this research work. This study collected secondary data through comprehensive analysis about various aspects such as document analysis or desktop study, technical reports, scholarly journals, government documents, research institutions.Results: The result shows that there are various key challenges including research and development and innovation, information security or contingency planning, rapidly advancing technologies, ageing technology and under-investment and the change in residents’ expectations.Conclusion: This article has identified various challenges affecting businesses or organisations, particularly City Governments in competitive advantage through managing technology and innovation. This include inter alias: manpower training and recruiting, organisational transformation, rapidly advancing technologies, ageing technology and underinvestment, the change in residents’ expectations.