This study was conducted in an attempt to tackle how to innovate and adjust teaching under the functional requirements during the process of developing knowledge-based economy (KBE) society in Taiwan. In specification, the study aimed: 1. To develop a ”KBE” oriented instruction system, 2. To experiment this ”KBE” oriented instruction system, 3. To estimate the possibility and feasibility of this system, and 4. To evaluate the effects of the ”KBE” oriented instruction system. For the first objective, this study used systems analysis to design the ”KBE” oriented instruction systems hopeful of working in a real school setting or in a virtual class. For the remaining objectives, a quasi experiment following ”pretest and posttest unequal groups design” was employed to put this instruction system into action. Three college classes were sampled from KU as the subjects. One of them was assigned as the experimental group, while the other two as the control groups. The experimental group was taught by ”KBE” oriented instruction system. Both groups were evaluated before and after the experiment by a selfmade questionnaire entitled ”The knowledge and literacy in knowledge-based ecomomy society”. As the experimental terminated, memhers of the experimental group were interviewed over MSN on the Internet. The data were analyzed quantitatively by ANCOVA with the pretest as the covariant as well as by interpreting qualitatively. The results revealed that this study has developed an instruction innovation model to be followed to meet the demand of a knowledge-based economy society. Further, this instruction model can effectively improve students' knowledge and literacy for a KBE society. Still further, the students taught by this model have accepted and valued positively this KBE instruction system.