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<p>In Taiwan the precision machinery industry has always played an important role in promoting important industrial upgrades. Small and medium enterprises (SMEs) account for the vast majority of participants in this industry. Because of their size and number they face a number of problems. These include difficulty in responding quickly to market demand, a low level of collaboration, and insufficient interaction between designers in central factories and the subcontractors who manufacture components for them. Taiwan’s i236 initiative applied a Living Lab Concept, along with information and communication technology (ICT), to develop a cloud-based ‘Engineering Data Bank Service’ to act as a hub for gathering data together from a local precision machinery industry ecosystem. The Taichung City Precision Machinery Innovation Technology Park was selected as the test site. After deploying the service to more than 400 SMEs, it is found that this service has a low deployment cost, and can indeed effectively enhance the working efficiency of R&amp;D personnel and increase the interaction between central factories and subcontractors, thereby enhancing the international competitiveness of the precision machinery industry in Taiwan.</p>