The recent rise in globalization has brought forth a global wave of academic competitiveness, which has taken its strongest hold in East Asia. In order to attain world class status, Taiwan's Ministry of Education (MoE) initiated a project called Plan to Develop First-class Universities and Top-level Research Centers. The project is often coined the "Five-Years-50-Billion Project," due to the fact that the MoE will invest 50 billion New Taiwan dollars (US$1.64 billion) in the plan over a five year span. First, the authors will attempt to investigate and analyze the difference in funding rationale and policy between the periods before and after implementation. Second, this study seeks to evaluate the plan's efficiency on an institutional level by using data envelopment analysis (DEA). Findings suggest that the current funding policy has indeed increased Taiwanese universities' levels of internationalization and global academic competitiveness. However, comparisons among those universities suggest that despite the relative degree of efficiency, more investment did not ensure better university performance. Guidelines for allocating funding should be regularly revised in order to reflect any changes in relevant conditions and in universities' overall performance and efficiency.