Local industries are crucial for enhancing urban competitiveness and are closely related to national economic performance. To sustainably develop local industries, a set of assessment indices should be formulated in addition to factors such as geographical environments, cultural history, development processes, and industrial structures for governments to promote development policies while satisfying the goal of sustainable industrial development. This study first adopted the fuzzy Delphi method to construct the indices for assessing local industrial development, referred to the action plans for the six key industries formulated by the Executive Yuan of Taiwan, and subsequently integrated the analytic hierarchy process and analytic network process to determine the order of priority for policies facilitating local industrial development for future reference. The results indicated that infrastructure, innovative research and development, and government policies are crucial bases for local industrial development. Furthermore, this study adopted Taoyuan to verify these indices and compiled expert suggestions to indicate that the government should prioritize the development of the biotechnology, green energy, and medical care industries. When developing local industries in the future, a set of assessment standards and policy analyses should be established for the government to enhance local industrial development and thus increase international competitive advantages by fully ascertaining the factors for industrial success and the characteristics of local advantages.