The purpose of this study is focusing on whether the heterogeneity and catch-up of economic production technology exist between Taiwans service-typed and nonservice-typed cities and counties. We firstly apply the meta-DEA to investigate the heterogeneity of economic production technology between these two groups and then discuss their technology catch-up by de-compositing the Malmquist productivity index from 2001-2010. Our estimated results show that the production efficiencies of cities and counties in nonservice-typed group significantly lower than the ones in service-typed group, which indicates that the economic production technology heterogeneity exists between the nonservice-typed and service-typed cities and counties and also reflects the distance between urban and rural areas. Besides, the higher Malmquist productivity indexes from 2001 2010 of the cities and counties in nonservice-typed group than the service-typed ones also show that the former group contribute more to Taiwan’s total factor productivity. In addition, the cities and counties in southern Taiwan caught up obviously and Tainan city is the one which caught up most actively. Finally, the average catch-up indexes are smaller than 1 in 2001-2010 also means that the distance between urban and rural areas has been shortening gradually.